Why Is The Trading Company More Suitable for The Perfume Industry?

There is a common phenomenon in the perfume industry that those large perfume brands tend to cooperate with trading companies, especially for the packaging materials. Why do they prefer to cooperate with trading companies instead of factories? This is the first question.

Trading corporations and factories are the two primary types of perfume packaging manufacturers. However, many famous perfume brands tend to choose the former one when working with their upstream and downstream manufacturers. The trading company emerges in the selections with the fine service, which has become the primary trend of the market. Where the strengths of trading companies lie in compared to factories in the perfume industry? This is the second question. The rest of the article will focus on this.

Product’s diversification

The price of perfume bottles directly purchased from factories is lower than that of trade companies, but various products are what perfume brands need to create a brand image. A factory generally produces a single product, which fails to meet the diverse needs of customers. Therefore, if factories want to meet the diverse needs of customers, more labor costs and production costs have to be invested in. It undoubtedly offsets the benefits from low price procurement. On the contrary, because trading companies have a complete supply chain and the capability to provide professional services, they can allocate perfume packages in time. The trading company also cooperates with different factories for different kinds of perfume bottles. They are good at choosing the matching factory according to the size of the order to meet the customer’s demand at any time.

Risk

A stable supply channel is necessary for most perfume brands because their target groups are strong, so there is no emergency situation allowed to occur, and regular supply must be ensured. If perfume brands buy large quantities of glass perfume bottles directly from factories, they will face the problem of finding alternatives when there is a quality problem in factories. It is not easy to find substitutes and takes much time, which will lead to the disconnection of the whole supply chain. However, if perfume brands purchase through trade companies, the above problems can be evaded, as there are many factories for the trading company to back up. Suppose one of the factories runs into problems. In that case, the perfume packaging trading company is capable of flexibly replacing another factory for its customers so as to ensure normal production and supply and satisfy the customers’ market plan.

Service awareness

Many factories only focus on production and lack service consciousness. It is easy for factories to have the following mistakes in the early stage:

• Stingy in providing models of glass perfume bottles.
• Slow response to the changing perfume packaging market.
• Inefficient communication. After receiving the inquiry from customers, the factory will pay more attention to the order quantity of customers and whether they intend to reach cooperation, which will lead to a long negotiation process and difficulty winning the trust of customers.
• Lack of professional service personnel.

The advantages of trade companies and factories lie in their professional service team and efficient communication and response ability. Because they have been engaged in foreign trade for a long time, they have accumulated rich experience in this field. Compared with factories, they can help customers solve problems related to foreign trade quickly and efficiently, so as to save the time and energy of both sides.

Market order

Only by keeping balance can the ecosystem develop steadily. A stable chain has been formed in the long history of perfume trade: factories – foreign trade companies – Intermediaries – end users. Perfume brands, as customers themselves, do not want to destroy this structure and produce unstable factors. After all, it takes time and money to form a new chain of perfume packaging for them.

Conclusion

You might wander between trading companies and factories when choosing suppliers to carry out new projects before. At the end of the article, I hope you have already had a clear mind. Moreover, if you are in the perfume industry, you are welcome to contact Abely for a free consultation at any time. Abely is a one-stop custom perfume packaging company that can provide you with professional services regarding perfume packaging, including glass perfume bottles, perfume covers, perfume boxes, perfume accessories, and so on.