Some of the most glamorous ads on television or in magazines belong to perfume makers. Nicole Kidman, Scarlett Johansson, Charlize Theron, and other A-list stars are used to conjure up a sense of fantasy that helps people feel better about spending hundreds of dollars on a few ounces of scented liquid. It’s an effective, not-terribly-original way to sell a premium product, and also a reminder that the perfume sellers have the fat margins needed to pay spokespeople millions of dollars.
A pair of Stanford Graduate School of Business alumni—sound familiar?—have come up with a lower-cost, less-glitzy approach to selling perfume that they think is more in keeping with the lifestyles of modern women. Erika Shumate and Christine Luby launched their startup, Pinrose, this week with 10 scents that cost $50 each.
Pinrose has something of a technology twist. There’s a “scent finder,” which presents customers with a series of questions and then uses an algorithm to pick out three scents that should prove appealing. Shumate studied the psychology of scent in college and applied her expertise to develop the questions and fine-tune the algorithm, and the founders claim the system works about 75 percent of the time. In the future, they hope to mine a person’s Instagram feed or Pinterest board to come up with conclusions about the scents specific women will like.
The larger sales pitch revolves around an attack on the idea of a signature fragrance. Women have been cajoled into picking one perfume that “defines” them and sticking with it for years. Shumate and Luby contend that women should be able to hop from fragrance to fragrance depending on their mood. “We’re going to create even more custom scents,” Shumate says. “There are brides who want a special scent for their wedding day or their engagement. Scents are tied to our memories, and this lets you go back later and recall those times.”
The perfume industry is smaller than you might think. It’s centered in New Jersey and France, where there are basically four companies that make the fragrances. Another handful of companies then buy “the juice,” as it’s known in the industry, and sell that to other companies, which just put their brands on the bottles. Pinrose works with perfumers to come up with each scent, then buys the liquid by the kilo in large drums. All told, the market for perfume is about $6 billion in the U.S. and $30 billion worldwide.
“We went to some of these traditional companies and were like, ‘We’ll bring scent online,’” Luby says. “They said, ‘We don’t understand the Internet. How do you smell through your computer?’ It’s a super old industry that has always operated the same way.”