Of all the human senses, the sense of smell stands out the most. It is because the sense of smell is distinctive compared to the other senses. It is because humans associate a scent with other people, places, and events.
The scent helps us treasure memories and cherish them. So naturally, perfumes have a huge impact on us. The scent of the fragrance helps us connect with other humans and make memories. This fact is very well known, and civilizations throughout history have associated themselves with different scents.
The Middle East region has its own unique brand of perfume that is popular in the UAE and is commonly known as Attar. UAE is known for its attar all over the world for its exceptional perfume, “Attar”, as it is an essential oil extracted from botanical resources. Because attar is unique and one a kind, the perfume sector has got a promising future in the UAE. The perfume industry is one of the most successful and profitable industries in this region. Which makes the perfume business very attractive to get into.
So, let’s take a look at the Dubai perfume market and understand all the rules and regulations that need to be followed when starting a perfume business in Dubai.
UAE Perfume Industry
The perfume business is included in the country’s most profitable businesses. It was recently reported on the news that one of the world’s most expensive perfumes available on the market in Dubai was worth DH 4.8.
The UAE perfume market peaked at a value of US$ 528 Million in 2020. In the near future, the Dubai perfume market is expected to grow at a CAGR of 8.4% during 2021-2026.
What’s your targeted market?
Your targeted market includes everyone who is into personal grooming. This means both men and women are your target customers. Some of the favorite perfume scents include amber, musk, exotic flowers, oud perfume, and many more.
Perfume Manufacturing in UAE
In Dubai, the conventional method of producing the perfume manually and selling it in the local market was common in the past but in the last decade, the industry has made big strides. with the UAE demonstrating its significance as an international destination and a strategic business center for the perfume industry.
The country holds the top spot when it comes to the production and export of perfume, with the assistance of the UAE leadership and regulations that encourage business growth. the city also offers respective licenses to begin the business activities with ease.
Retail in Dubai
Dubai is known for the retail industry; all the major brands of different products have seen huge success in the city. The tax-free policy makes businesses flourish. It is one of the most promising businesses in the retail sector.
Companies can easily sign up for a trade license which grants them permission to start their operations and run the business.
How to Start a Perfume business in the UAE?
Like any other business, setting up a perfume business in the UAE also requires you to follow certain rules and regulations. Abiding by these rules will give you the best possible head start that you had been looking for.
The procedure is straightforward as there is a planning phase, then the implementation stage, and lastly, it’s waiting for approval for your business so you can make your products available to the clients for purchase.
Shape a Business Plan
You can never start a business without proper planning. Formulate a business strategy; formally write down your company’s mission statement, goals, products you want to offer, your business capital, and budget plan.
Hire researchers and experts who will help you invent your own exclusive products. Research on the perfume recipes or make distinctive blends by purchasing a few essential oils in fragrances that are of interest.
Start blending scents together and experiments few scents which are good enough then start the mass-produce.
Design Bottles and Packaging
The look of your product is the most important thing. Especially when you’re advertising it, people are going to look at it so you need to really invest in the design of the bottles and packaging.
Hire researchers and experts who will provide you with the information you need to design bottles and packaging that are catered to your product and your targeted customers. You can outsource the manufacturing of bottles and packaging to a contractor.
Build a Brand
The long-term success of a business depends on the fact whether a company is able to establish itself as a brand or not.
So, you will need to hire creative people who will help you design a brand logo that represents your company and is appealing to your targeted audience. They can also help you design a marketing strategy for your brand. You will need to register your trademarks with the authorities in Dubai.
Most importantly you will have to obtain a business license from the Department of Economic Development (DED) to start your perfume business in Dubai.
Setting up a Manufacturing Facility
Traditionally, the perfumes were all produced manually and were then sold in bulks. However, this trend has gradually seen a decline as the world of personalization has taken a hold of everyone’s attention. This change demanded the perfume manufacturing industries innovate and come up with a solution; which, of course, was customized fragrances, tailored to match the needs of different people around the globe.
This trend change saw a huge market opening where UAE firmly established itself in. In addition to being an international destination, UAE has also now known as a strategic commercial center for the entire perfume industry.
If you are thinking of setup a perfume manufacturing facility in Dubai, there are various free zone options available you can choose from. Dubai Free Zone, Jebel Ali Free Zone, and plenty more all provide facilities that are ideal for your perfume manufacturing facility.
Why start a Perfume Business in Dubai?
Opening a perfume manufacturing facility in Dubai will set you on the path of prosperity. In addition to being a lucrative business, network building can also help you come across more business opportunities and ventures. Many famous perfume manufacturers are now a part of the ‘celebrity cult’, which is an added benefit that comes with it.
In a rough estimate, the UAE perfume industry is said to value more than 500 million dollars and is expected to reach around 700 million dollars by the end of 2023.
In addition to the financial aspect of it, the industry provides you with an international market to deal with. This essentially opens up the doors for customers across the globe, which is an excellent business proposition.
Furthermore, the UAE has a supremely robust transport network system that enables you to carry out your business operations with ease.
Riz & Mona Consultancy
Whether you’re looking to start a new business in Dubai or you need services for your existing business. It’s always recommended to consult with a reputable consultancy firm like Riz & Mona to avoid any mistakes or legal issues.
We provide a complete range of corporate services across the UAE and have clients from all over the world. Our services include LLC Company Formation, Business Setup in Dubai Mainland or in any of the Free Zones of UAE, Offshore Company Formation, Business Support Services, Business Licenses, Product Registration, Pro Services, Bank Account Opening, Visa Services and much more.
Get a free consultation from our experts. Contact us on Whatsapp: +971 54 582 1012 or email: firstname.lastname@example.org. Book your free appointment to get professional assistance as per your requirements.