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52 August 2014 | beautystorebusiness.com Where did the idea for FragranceNet.com originate? While in college, I created a student magazine that distributed 10,000 copies per week, featuring special discounts from local and national companies. After graduating, I began to experiment with the Web and my interest in online com- munities led me to form CyberCampus. com, the only Internet guide made for college students by college students. These experiences led me to apply my creativity and hard work to mass market- ing fragrances. What initially attracted you to the fragrance industry? I knew I wanted an alternative to flowers, balloons and other standard gift items. Fragrance was an untapped online market, and what I thought would be my win- ning solution. At first, FragranceNet.com only had an 800 number that customers could call to order fragrances over the phone. Then the Internet came along and the business went in a whole new direc- tion. Within a few months, FragranceNet. com—the world's largest discount fra- grance store—was born. I knew early on that the website had to have a unique and user-friendly environment. I developed the company with that in mind, not only offer- ing huge discounts, but free gift wrapping, personalized gift cards and delivery on more than 3,000 brand-name products. What is the current state of the fragrance industry? As the [American] economy continues to recover, consumer confidence will increase, especially among high-income consumers who will drive this market and fuel the demand for premium fragrances. Women are the leading consumers of fragrance products with heavy consumption being the highest amongst older women—ages 55 and over—and amongst tweens and [young] teens. These are two key segments that marketers need to sus- tain. Furthermore, the global fragrance market will continue to grow as the middle-class populations in non-western countries grow. FragranceNet.com ships internationally so we are well suited for such growth. How are you able to offer discounts on big name brands? FragranceNet.com has a team of great buyers who are able to source prod- ucts from wholesalers, distributors and fragrance companies. They're able to secure the best prices, and we pass those savings along to our customers. Do you consider yourself competition to Sephora, ULTA Beauty and Perfumania? The company is different from its competi- tors because we offer deep discounts and the widest selection of products at the best possible prices. We currently have more than 17,000 SKUs on our website. We have great content and customer reviews. Our extensive inventory enables us to carry products that other stores—both online and offline—do not offer. Unlike a brick and mortar, we do not have to substantially mark up our goods to cover our expenses. Who is your main customer? Do you also sell to beauty stores, beauty pros and others? Our business model is a healthy mix of both B2C and B2B. We sell via the Web and also have a wholesale and drop ship business. How do you reach your potential customers? We've built an international brand pres- ence utilizing Web, television and print advertising. Our Internet presence is second to none, and we create and deliver a message that gets noticed, makes a difference and drives a call- to-action. We have a robust advertising budget that reaches consumers both online and offline. Do you ship out of your own warehouse? Our business model is simple. We buy in bulk, warehouse and ship out of our own facility. We always pay our bills. It makes [business] easy. Companies want to do business with us. What is your average ticket size? And how often do customers return? Our average order is $75, and our customers purchase product a few times per year. What are some of your hottest products right now? Our top-selling women's fragrances are Light Blue by Dolce & Gabbana; Eternity and Euphoria—both by Calvin Klein; ÒSampling is on the rise. People are interested in trying before buying, especially [for] a luxury product such as perfume.Ó All images courtesy of FragranceNet.com F r a g r a n c e N e t c o m - T h e S w e e t S m e l l o f S u c c e s s . i n d d 5 2 FragranceNetcom-The Sweet Smell of Success.indd 52 6 / 2 6 / 1 4 3 : 0 9 P M 6/26/14 3:09 PM