THE CONFERENCE PROCEEDINGS - IFEAT

THE IFRA SOCIO-ECONOMIC ANALYSIS PROJECT 1The project’s objectives were to expose theindustry and to define it more precisely andgive it a unique selling proposition. Theunique selling proposition that we areproposing today is that we are a platformtechnology industry. We bring not onlycreativity but also we bring technology to ourcustomers, and this technology enables themto make money.The Project• Fragrance industry is integral to thousands ofproducts and millions of people– It is an industry without a profile• It is an art, but– It is also a platform technology producing proprietaryblends that are vital to innovation across a wide range ofsectors and products– IP protection is key to the process• A brief description of our approach to this SEA• An overview of the key numbersBefore we go into how much this platformtechnology unique selling propositionrepresents, let me explain how or what weare trying to value.10The chart below shows what we have scoped so far, starting from the fragrance houses at the top of thechart, from all shapes and sizes, and the speciality ingredients suppliers, and then we have looked intowhere this all goes. It goes into fine fragrances, personal care products, household products, andindustrial cleaning products. Then as you go down, before you get to the consumer obviously you haveto go through a funnel, which is the retail funnel, which has been put at the bottom of the chart. Butmore importantly you have another sector of the industry that “feeds” off of all the good work that hasbeen done by the fragrance houses, and those are the businesses that act on behalf mainly of themanufacturers, which could be advertising agencies, marketing operations, packaging agencies and soforth.Fragrance Industry Value Chain1 The Socio-Economic Impact of Fragrance Technologies in Europe The Huggard Consulting GroupSeptember 2012 IFRA221