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NIKOO Chemical - Skincare Raw Material Supply and Custom Solution Specialist for 15 years. 

The Sensory Economics of Fragrance Formulation: How to Enhance Product Premium Value Through Scent

In the cosmetics market, the value of scent has long transcended the sensory experience itself, becoming a key element in shaping brand identity and enhancing product premium value. The core of fragrance formulation lies in translating abstract emotional appeals into perceptible scent symbols through scientific sensory research.

The Sensory Economics of Fragrance Formulation: How to Enhance Product Premium Value Through Scent 1

Precise Matching of Fragrance Types with Consumer Groups

- Gen Z: Prefers the sweet and fresh combination of ‘fruity + musk,’ such as strawberry ketone and ambroxan, evoking a youthful, energetic vibe. A domestic brand using this fragrance profile for its body lotion saw a 37% increase in repurchase rates;

 

- High-end men's market: Utilising ‘cedarwood + leather’ fragrances, such as the combination of patchouli and guaiac wood, to convey a mature and steady demeanour. The average price of related skincare series is 25% higher than that of similar products;

 

- Sensitive skin segment: Developing the ‘unscented + mildly scented’ concept, blending 0.05% chamomile essential oil to create a ‘reassuring’ olfactory memory. Tests show that trust scores for such products have increased by 41%.

 

Building olfactory memory anchors

Neuroscience research indicates that olfactory memories last twice as long as visual memories. A certain international brand has maintained an 89% olfactory brand recognition rate by consistently using the core fragrance notes of ‘rose + sandalwood’ for 20 years. Our fragrance development team can establish a brand-exclusive ‘fragrance fingerprint library’ through GC-MS fragrance component analysis, ensuring fragrance consistency throughout the entire process from raw material procurement to finished product production.

 

Cost Control and Effectiveness Balance

Fragrance costs typically account for 3-15% of total cosmetic raw material costs. We offer dual product lines: ‘functional fragrances’ centred on functional essential oils (e.g., acne-fighting fragrances with 1% tea tree oil) and ‘sensory experience fragrances’ focused on optimising olfactory experiences (e.g., long-lasting fragrances with 12-hour retention). This helps clients maximise fragrance value across different price segments.

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