MyParfum | Overview

Individuality in a Flacon

Once it was reserved for powerful rulers and enchanting beauties such as Cleopatra, today it thrills people around the globe: The luxury of one's own perfume.

Our customers become perfumers themselves and create their own unique fragrance online. In so doing, they first choose the character of the scent. Based on this character, we recommend the matching scents to our customers. They may choose between 50 exclusive ingredients like Damascus rose, cashmere wood, or Sicilian lemon. The flacon can be individualized as well and labeled with one's own name or a photo. The result is a truly unique perfume in a personal flacon, which suits one's own preferences, taste, and character.

Create Your Own Perfume in 3 Easy Steps

The MyParfum scent system, our modular system for creating individual perfumes, was developed together with renowned perfumers and is globally unique. Our concept has won multiple awards, for instance the EO Global Innovation Award in the U.S. (the previous winner was MeetMe, which was sold for USD 100m in the meantime).

Unique: An Individual Perfume in a Personal Flacon

88,000 Customers, 1,500 Press Reports, and Total Revenues of EUR 3.5m

With over 88,000 customers, 132,000 individual perfumes sold, and cumulated revenues of EUR 3.5m, we have already proven that the concept works. We are thus taking account of the two mega-trends in the EUR 14bn perfume market: The boom in online retail and the omnipresent trend toward individuality.

Roughly 11 % of revenues on the German perfume market are already generated online, and this number is increasing. In times of mass consumption and conformity, the importance of individualized products and services is constantly increasing. There is hardly an accessory that expresses one's own personality more clearly than one's personal fragrance.

However, this business concept is also very attractive from an economic perspective. Once all costs of marketing, production, and returns have been deducted, the profit (before fixed costs) per perfume sold is € 15.23 (36 %) – at a (net) sales price of only € 42! 

Celebrities also swear by their own fragrance. In addition to numerous private customers, we have already been able to convince famous labels from the music and show business as well as important figures from the international fashion and movie industry. German actress Anja Kling, who has won several important German movie awards, created her own perfume Adrian Jolie in the MyParfum laboratory to honor her children (view Article on Promiflash). The fashion labels LAC ET MEL and Kauffeld & Jahn also supplemented their Fashion Week collections with an individual fragrance by MyParfum (view Article on Promiflash).

Celebrities Also Swear by Their Individual Fragrance

So far, we have already acquired 88,000 customers; in 2017, we will have more than 400,000. But there is no need to worry: Since there are 150 billions of possible scent combinations, we can almost guarantee each customer a unique fragrance. Only 6 % of customers use our voluntary money-back guarantee.

Because of our long experience, our technological advantage, and our high brand awareness, we have created a big barrier to potential copycats that challenge our global market leadership in individualized perfumes. By means of 1,500 press reports and TV campaigns with million-euro budgets, we have been able to create a famous brand with a media equivalency value (i.e., the value of our press articles/campaigns translated to advertisements) of EUR 10-20m.

We Will Increase the Number of Customers from 88,000 Today to 400,000 in 2017

Proof of Concept and Lessons Learned

The concept of the individualized perfume works. Due to the promising figures, growth rates of 300-400 % during Christmas sales in 2011, and an annual profit of over EUR 70,000, we had massively scaled the predecessor of today's MyParfum in 2012, had expanded our team to more than 60 employees, and had increased our expenses for TV commercials twentyfold to a million-euro budget. We had placed all of our trust in TV commercials, but the TV effect and the increase in revenues it generated was not the same at this astronomical level as before. We had overestimated the scalability of TV commercials and increased our expenses more than we should have, which is why the predecessor of our company became insolvent at the beginning of 2013. Yet, we did not give up. Due to the support of our friends and business partners, we were able to completely restructure the company and successfully reorient it last summer.

Today, we know that scaling up a company requires a lot of planning. TV cannot work miracles; it can only be part of a well-balanced marketing mix. Thanks to the experiences we have made over the last few years, we are now ready to take the next step and lead the company to success. In the future, we are going to use a well-balanced mix of marketing and sales activities instead of a single marketing channel. At the same time, we are going to ensure that our monthly expenses do not exceed our receipts and that the liquidity of our business is guaranteed over the long term despite all investment projects.

Celebrities on MyParfum

The MyParfum group now consists of a holding company that is not involved in any operational activities, holds all assets, and owns 100 % of the operational subsidiary MyParfum Europe GmbH. All Companists are investing in the MyParfum holding company and are thus going to participate in the future national and international success of the company.

Our Assets Are Protected by a Holding Company

Enormous Potential: The Next Step

Today, MyParfum is on the verge of global success and is revolutionizing traditional perfume retail. In the past, we have already been offering our tailored perfumes very successfully on our own website. In the future, we will cooperate with perfume store chains and also offer our personal fragrances in stores.

For this purpose, we have developed the MyParfum scent bar, which is going to be integrated into the first perfume stores as early as this year. By means of the MyParfum scent bar, we are going to have our own sales desks in our partner stores, where the existing sales clerks will serve customers. We are going to provide the equipment and the expertise. In this way, perfume stores can enable their customers to directly create their individual perfume in the store. Moreover, perfume stores will be able to distinguish themselves from their competitors, to refine their brand image, and to increase the loyalty of their customers. The first 5 branches are going to be equipped this year; up to 240 branches will follow until 2018.

For strategic reasons, however, we also run our own branches. We have recently opened the first MyParfum atelier in Berlin-Mitte. As a flagship store, our atelier primarily serves the purpose of branding. Nonetheless, it is already profitable and self-supporting after 3 months. Additional flagship stores in select strategic locations such as Hamburg and Munich, which are also important media locations, will follow.

Simultaneously, we are cooperating with select online perfume shops. For this purpose, we are currently developing the MyParfum fragrance designer as a partner solution. Thus, online perfume shops like Douglas may also enable their customers to create individual perfumes directly on the shops' websites in the future. In such cases, we will handle the entire perfume production and processing of orders. The fragrance designer will be integrated into the first websites as early as this year.

After our successful market entry in Austria (where we are already generating 6 % of our revenues) and Switzerland, we will also establish ourselves in England and France and on the huge American market.

The Next Steps: We Will Establish Individualized Perfume around the Globe

An Individual Perfume in a Personal Flacon

First of all, online customers choose one out of five female or male fragrance types, for instance sporty, elegant, charismatic, or seductive. This type emphasizes the character of their personal fragrance. Next, customers choose their favorite scent, for example flowery, fruity, or oriental. This scent is used as a basis for our recommendation system. Based on our customers' preferences, we then recommend specific scents to them that go well together. We have developed fifty premium scents ranging from oriental Ambergris to Sicilian lemon ourselves, and customers may choose up to six of these for each perfume. Consequently, there are 150 billion possible combinations of the different scents. A fragrance wheel helps customers orient themselves and shows them in which direction their creation is developing.

Afterward, they may also individualize the perfume flacon. Customers may select from various designer flacons. These are also labeled in a personal manner due to state-of-the-art production technology. Consequently, customers can label the flacon using their own name and even a photo. A personal greeting turns the individualized perfume into a perfect gift. The flacon may also be labeled with high-quality prints of company logos. A personal label rounds off the individualized perfume and makes it unique.

Each Perfume Is Tailored and Unique

The result is a truly unique fragrance and satisfied customers. Indeed, should customers not like the perfume they have created, they can get their money back due to our money-back guarantee, or our fragrance experts will create the fragrance again for the customers based on their wishes. Less than 6 % returns clearly show the high quality of our perfumes. All formulae are stored using a unique perfume ID, so customers can easily reorder the perfume or refine its formula at any time.

Those who feel they are not capable of designing their own fragrance may also have the fragrance designed by our fragrance experts. MyParfum has developed a set of questions to find out about the wishes and preferences of the future user of the fragrance. Based on these questions, MyParfum designs the customer-specific perfume. People who prefer to try our products first can get the gift box, which contains three perfumes for women or men created by MyParfum and a gift card for creating one's first own perfume. We are also working on a box containing several samples of the different scents.

The basic version of an individual perfume in a 30 ml flacon (eau de parfum) is available for as little as € 39.99. The majority of flacons (50 ml), however, is available for € 49.99. For an additional fee, customers may have the perfume gift-wrapped or combine it with a flacon of Swarovski crystals. For special occasions, such as Christmas or Valentine's Day, limited editions of flacons (e.g., gilded or diamond-studded ones) are offered for up to € 100. 

MyParfum Customers Become Perfumers Themselves Online

Experiencing Individual Perfume in the Store

Paying great attention to detail, we opened the first MyParfum atelier in Berlin-Mitte last fall. Here, customers can create their individual fragrance under the guidance of experts and then take it home instantly. Moreover, they may experience our fragrances in "fragrance workshops" with up to 8 participants and design their own perfume (50 ml eau de parfum). We also pamper our customers by means of a champagne reception in a pleasant atmosphere. Customers from all over Germany come to Berlin specifically to visit our atelier. Additional MyParfum ateliers in major German and European cities will follow. In order to significantly increase our reach, we will negotiate cooperation agreements with established perfume retail chains. The first partner branches are already being planned. Thus, we can quickly and efficiently scale up our business.

The First MyParfum Atelier Centrally Situated in Berlin-Mitte

Target Group

Our database containing more than 88,000 customer records shows that 70 % of our customers are women. Even though our concept addresses people of all age groups, MyParfum customers are mostly people over the age of 20 who are unconventional, trend-conscious, and wealthy.

In our customer base, the age groups from people in their mid-twenties to people in their mid-fifties are almost equally large. Older people prefer a visit to a MyParfum branch to an order online. MyParfum primarily addresses the modern, trend-conscious, and confident woman who attaches great importance to individuality and exclusiveness. The classic male customer of MyParfum is target-oriented, trend-conscious, and confident. The proportion of men who give an individual perfume or a gift card as a gift is significant. This group of customers is particularly wealthy and tends to choose expensive special flacons more often.

Corporate customers and celebrities from the music and fashion industry form another growing target group. In this segment, the individual design of the flacon is particularly important in order to market the individual fragrance using an own brand recognized by many people.

Excellent Prospects – Our Wealthy Customers Love the Exclusive

Global Market Potential

The German perfume market with its market volume of over EUR 2bn is the largest in Europe, closely followed by the French market. The total European market volume is EUR 4.9bn, and the global market volume is as high as EUR 14.1bn. The perfume market is changing. In stationary retail, fierce competition has developed. The top dog, Douglas, dominates the market with a market share of roughly 50 % and 1,650 branches in Germany and abroad, but it is struggling with the LVMH subsidiary Sephora on an international scale, which forced Douglas to abandon the American and Asian markets. Owner-operated perfume stores have allied under the umbrella of the Beauty Alliance to counterbalance this development.

At the same time, sales are increasingly shifting from stationary retail to online retail. Approximately 11 % of revenues on the German market are already generated online, which corresponds to roughly EUR 200m – and the tendency is increasing. Classic perfume stores are forced to adapt in order not to lose customers and market shares – a painful experience that book stores made when Amazon entered the market. Douglas CEO Dr. Henning Kreke has also recently summarized the situation: "We come from the idyllic world of stationary retail and have developed good online shops in addition to that, but we have only partly succeeded in connecting the two segments so far."

MyParfum positions itself not as a competitor of the retail industry but as its partner. We enable online retailers to integrate our system into their online shops. Simultaneously, we support stationary perfume stores by integrating the MyParfum scent bar into their branches.

Digitalization and Individuality Are the Megatrends in the Gigantic Perfume Market

MyParfum is active in three strategic business areas.

Online Sales

Our Own Online Shop

Online sales via our own website are our core business. By means of 132,000 individual perfumes sold, we have been able to generate cumulated revenues of EUR 3.5m so far. Using the MyParfum fragrance designer, our customers may create their own perfume online. The perfumes are produced in our in-house laboratory.

In other words, we control the entire value chain and act as a producer, brand, and retailer at the same time. As a result, we are able to achieve an extremely attractive contribution margin in the high-margin perfume business. Once all costs of marketing, production, and returns have been deducted, the profit (before fixed costs) per perfume sold is € 15.23 (36 %).

In the Online Shops of Our Partners

In addition, we will now also integrate the MyParfum fragrance designer in partner stores online. This means that customers will keep visiting the website of their favorite perfume store as usual, but will also be able to create their own perfume there in the future. MyParfum will supply the perfume store with the necessary technology and handle the production of the perfumes.

That is, we will act as a producer and a brand. The online perfume store will handle sales and marketing. In turn, the online perfume store will receive an attractive commission of 30 % of the sales price. This amount matches the amount that we spend on marketing on our own website. Thus, the profit (before fixed costs) per perfume sold is also € 15.23 (36 %) in this case.

Offline Sales

Own MyParfum Ateliers

Apart from selling MyParfum online, we also enable people to experience it in stores. We have already opened the first MyParfum branch in Berlin-Mitte last fall. There, customers can create their individual fragrance and take it home instantly. Even though the store primarily serves the purpose of branding and was designed as a showroom for journalists and partners, it is already profitable.

In the first three months after the opening, we generated revenues of roughly € 10,000, which corresponds to the share of the lease and the personnel costs. Since we can almost do without any marketing in the case of the store, the contribution margin per perfume sold there is € 30 (70 %). Other ateliers in strategically relevant major cities such as Hamburg and Munich, which are also important media locations, will follow in 2015.

In Branches of Partner Stores

By means of established perfume store chains, we will be able to quickly and efficiently scale up our business. The MyParfum scent bar for stationary retail is at the final stage of its development.

Using the scent bar (a separate MyParfum desk), perfume stores may offer their customers the exclusive service of creating their individual perfume and thus distinguish themselves from competitors. MyParfum will provide its partner stores with the scent bar, additional equipment, and the regular training of employees. MyParfum will receive approximately 50 % of sales revenues from the perfume stores. Simultaneously, they will be responsible for the final production and the entire marketing. 

Draft of the MyParfum Scent Bar

Corporate Customers

In the corporate customer segment, we are focusing on long-term partnerships with large order volumes (from 50 to several 10,000 items). We thus enable fashion labels, celebrities, resellers, and large companies to develop their own line of fragrances. One of our business partners, a seller of merchandise articles, has already ordered several thousand perfumes and made more than 10 reorders. 

We Are Active in 3 Strategic Business Areas 

Premium Quality and Long Experience

We exclusively obtain the essences and oils for our perfumes from long-standing partners in Germany, Southern France, Spain, and Italy.

Nature is very important to us, which is why MyParfum is against animal tests. Our scents consist of natural essential oils and high-quality designer notes, such as mango, raspberry, or oceanic aqua. Of course, all scents have been tested for allergens and conform to IFRA standards.

In the case of the glass flacons, we also use the best designer quality available and cooperate preferably with the French glass factory Verreries Pochet et du Corval. All products are subject to strict quality control, and each perfume is checked again manually before shipping.

As far as the adornment of our flacons with Swarovski crystals, solid gold, or diamonds is concerned, we cooperate only with experienced German jewelers and goldsmiths.

Select Essences: MyParfum Scents of Premium Quality

Actress Anja Kling (Winner of Several German Movie Awards) in the MyParfum Laboratory

Branding through Public Relations and Event Sponsoring

There is hardly an accessory to which the brand is equally important as it is to perfume. In conventional perfume retail, customers base their decision to purchase a product first on the brand, then on the packaging, and only after that on the scent.

In our case, the brand is replaced by the own brand of the customers, who create the fragrance themselves and then label it with their own name. Nevertheless, the "MyParfum" brand is highly important to the decision of the customer because reliability is essential to an intimate product like perfume.

We develop the awareness and appeal of our brand by means of targeted public relations work. As a result, we were mentioned in more than 1,500 press articles in all major German beauty media and high-circulation media in the past, for instance in VOGUE, Elle, InTouch, Galileo, Bild, and Süddeutsche. Moreover, we cooperate with several celebrities and host our own events. As a sponsor, we also participate in famous beauty and fashion events, such as the Fashion Week. Furthermore, we have attracted much attention around the globe by means of our TV and display advertising campaigns.

Fashion Week Sponsoring of the Fashion Label Kauffeld & Jahn

Marketing Directed at Online Customers and Existing Customers

Once we have created concrete customer interest, we monetize customer inquiries online or in the store. In this context, classic search engine optimization and search engine marketing combined with display and retargeting marketing serve to convert people interested in buying to customers.  The marketing mix is supplemented by affiliate marketing, direct mailings, package inserts, email marketing, and TV commercials. We also use radio and print advertising in a very selective manner. Apart from this, we have a large and very active Facebook community consisting of over 30,000 fans. Once we have acquired people as customers, we manage them within the scope of our marketing directed at existing customers. 

The MyParfum Christmas Commercial 2012/2013 (Pro 7, Sat.1, Kabel 1, RTL2, SKY

MyParfum – The Expert in Individual Perfumes

As the global market leader in individualized perfumes, MyParfum is challenged by the need to make individualized perfume famous rather than by the need to distinguish itself from its competitors. The classic perfume market is huge, and the major brands are famous.   Here, MyParfum clearly distinguishes itself from competitors through its USP of individuality. MyParfum does not consider itself a competitor of retailers at all; instead, it wants to act as their partner. This is a mutual perspective.

MyParfum is the expert in individual perfumes. Thanks to brands that are famous all over Germany, MyParfum is viewed as a provider of very high quality and excellent service by its customers. Five years of public relations and marketing work as well as a strong brand are a major obstacle to copycats.

MyParfum is also the market leader in the area of technology. The heart of the company is the excellent MyParfum scent system, which was developed for more than 6 years together with experienced perfumers and leading fragrance corporations. Because of more than 100,000 records that already exist, MyParfum is able to make precise statements about the combination of scents and to recommend appropriate combinations. As a producer of cosmetics, MyParfum has to satisfy very strict requirements such as the Cosmetics Regulation and is subject to regular inspections.

Other innovations are the MyParfum online fragrance designer, which calculates all creations using a special algorithm, and the MyParfum scent bar for stationary retail, which is currently being developed. The production process uses state-of-the-art technology, is precise to the microliter level, and is subject to strict quality control. MyParfum uses the modern flacon printing process as one of the first companies worldwide, and this process requires a high level of experience and an investment of over € 20,000 for a single machine.

Thanks to our 88,000 customers, we have a large group of supporters. Each formula is unique and has been stored in a database. Reorders are only possible via MyParfum.

The MyParfum Scent System in the In-house Perfume Laboratory

Carina Stammermann is the managing director of MyParfum. The business economist, who was responsible for marketing directed at existing customers at luxury shoe retailer Scarosso before joining MyParfum, wants to systematically develop the multi-channel strategy. It is Carina's goal to establish the individualized perfume in stores all over Germany. In so doing, she intends not only to expand the atelier segment but also to cooperate with select partner stores.

Matti Niebelschütz is the founder of MyParfum and manages the company together with Carina. Matti is the creative head and the source of ideas of MyParfum. With his more than six years of experience in the perfume and e-commerce industry, he not only promotes product development but also serves as a spokesman for the company. A member of the German society of perfumers, he knows what he is talking about.

Carsten Meier is the technical director and production supervisor of MyParfum. The engineer can look back on many years of experience in the fragrance industry. Carsten contributed his expertise to the development of both the MyParfum scent system and the innovative printing technology. Under his supervision, the company has already produced more than 50,000 unique fragrances.

Sophie Engel is the fragrance expert of MyParfum. A trained perfume expert, she has developed many of the exclusive and unique perfumes, among them the KJ perfume of the fashion label Kauffeld & Jahn Couture. Sophie also contributes her expertise to customer support.

David Frühauf is responsible for our web shop and its heart, the MyParfum fragrance designer. The talented programmer has supervised the development of the sophisticated IT system from the very beginning and still has great plans for the future due to his concept of an embedded solution.

Reinhold Rösner oversees all financial matters. The accountant is aware of all numbers and creates important reports.  He is responsible for processing ten thousands of customer payments, managing imports and exports, and supervising all investments. Because of more than 20 years of experience, Reinhold has no trouble managing his department.

Sylvia Wagner, who runs the company Visworx Creative together with a partner, is responsible for the exclusive design. She studied graphic design and has a good eye for aesthetics.

An Experienced Team and a Consistent Strategy Will Lead MyParfum to Success

• Deutsche Gesellschaft der Parfümeure (German Society of Perfumers), founder Matti Niebelschütz, 2014
• Soap Perfume and Detergents Experts Association, founder Matti Niebelschütz, 2014
• Bundesverband Parfümerien (German Association of Perfume Stores), MyParfum, 2014
• Service-Innovationspreis (Service and Innovation Prize), second place, 2013
• EO Accelerator Graduation, founder Matti Niebelschütz, 2012
• Global Innovation Award, EO, U.S., winner, 2010
• Business-Plan-Wettbewerb Berlin-Brandenburg (Business Plan Contest Berlin-Brandenburg), 1st place at the final stage, 2009
• Botschafter der Stadt Berlin (Ambassador for the City of Berlin), appointed by Governing Mayor, 2009

More than 5 years of experience and close cooperation with leading perfume store and market experts in Germany and around the globe have provided us with a very good overview of our business concept and the related strengths, weaknesses, opportunities, and threats.

MyParfum Will Pave the Way for a Consistent Multi-channel Strategy in the Perfume Industry

Past Company Achievements:

• Foundation of MyParfuem GmbH in August 2008
• Successful launch on TV and participation of business angel in 2011
• VC financing round and TV offensive in 2012
• Successful acquisition by MyParfum Europe GmbH in summer 2013
• Opening of the first MyParfum atelier in Berlin-Mitte in August 2013
• Cumulated Revenues of EUR 3.5m

Goals and Visions for the Next 3-5 Years:

• Development of the MyParfum scent bar for stationary perfume retail
• Establishment of the scent bar in up to 240 partner branches
• Integration of the MyParfum fragrance designer into leading perfume store websites
• Opening of flagship stores in Hamburg and Munich
• Expansion to Austria and Switzerland by means of stores in Vienna and Bern
• Expansion to England by means of flagship store in London
• Expansion to France by means of flagship store in Paris
• Successful market entry in the U.S. and flagship store in New York

We will use the investment to promote the success of our company and to continue implementing our multi-channel strategy. In particular, we will finish developing the MyParfum scent bar and establish the system in stationary retail.

Moreover, we will integrate the MyParfum fragrance designer into high-traffic websites. Apart from that, we will work on branding and on the opening of additional flagship stores in strategically important metropolises. Afterward, we will also transfer the successful concept of MyParfum to other countries across Europe and to the U.S.

Cost-efficient Scaling through Strategic Partnerships

All Companists are welcome to become active advisors, supporters, and brand ambassadors. You can also tell your friends and acquaintances about MyParfum. Of course, we will inform all Companists of new products, store openings, and cooperation agreements at an early stage and invite you to participate in our high-class events. Please send us your suggestions, wishes, criticism, and feedback to companisto@myparfum.de.

You have good contacts in the perfume store industry? We are looking forward to receiving tips on potential new partner stores and distribution partners! (companisto@myparfum.de)

You want to become a member of our team yourself? We are looking forward to meeting you! Read more at http://www.myparfum.de/karriere.html

Thank you very much on behalf of the entire MyParfum team! :-)

UNIQUE Fragrance GmbH

Reinhardtstraße 7, 10117 Berlin, Germany

Phone: +49 30 288 84 07 12  or  +49 800 1 750 750

Email: companisto@myparfum.de

Internet: www.myparfum.de