Domestic vs Imported Scented Sachets: The Ultimate Buyer's Guide

As a category manager or buyer in the fragrance space, you're constantly balancing costs, customer preferences, and striving for comp sales growth. Sachets, while seemingly simple products, can have a surprising impact on your business—either driving significant sales or leading to markdowns and lost opportunities.

A key factor to weigh is where you source your sachets from.

The Allure of Imports

Imported sachets can seem appealing, and often for good reason. They're nearly always cheaper than domestically sourced products, which can be a major draw for retailers looking to give their customers the lowest possible price while maximizing their profit margins. Not to mention, international manufacturers specializing in high-volume production are often well-equipped to meet the production scale required by large retail chains, making international sourcing a practical choice.

At the same time, this lower cost often comes with hidden risks that some buyers don’t take the time to understand and evaluate.

The Hidden Costs of Importing

1. Transit Time: One of the biggest challenges with imported sachets is the long transit time involved. Products shipped from overseas can spend weeks or even months in transit. This extended exposure to heat, humidity, and other environmental factors can accelerate fragrance diffusion, reducing the product's shelf life and overall effectiveness. By the time the sachets reach the shelf, they may have already lost much of their scent.
   
   
2. Fragrance Quality: Another concern with imported sachets is the quality of the fragrances used. To keep costs low, some importers may opt for cheaper fragrance formulas that lack the depth and complexity of premium blends. These fragrances may not be as appealing to shoppers, leading to lower sales and returns.
   
   
3. Unproven Product Sets: It's also important to consider the level of market saturation for imported sachets. If the supplier is selling their products to multiple retailers, it's likely that your customers will encounter the same sachets in other stores. This can lead to a lack of differentiation and reduce the perceived value of your product.

The Challenges of Domestic Sourcing

Domestic sourcing also presents its own unique disadvantages, which can include:

• Cost Structure: As previously mentioned, domestic manufacturing costs are typically higher than international options due to labor costs and smaller production runs. Ideally, shipping and storage costs help to offset this base cost difference. If not, retailers might need to either accept lower margins or position these products at higher price points.
• Production Capacity: Most domestic suppliers operate at smaller scales than their international counterparts, which can create challenges during high-demand periods. Order minimums may be higher than expected as domestic facilities try to maintain efficiency with smaller operations.
• Market Pricing: The higher cost structure requires critical decision-making surrounding pricing strategy and margin expectations. While some retailers successfully position domestic products as premium offerings, if the fragrance isn’t elevated in quality, customers might be unwilling to pay the price differential. 

The Advantages of Domestic Sourcing

Domestically sourced sachets offer a number of distinct advantages over imported products. Here's why:

• Shorter Lead Times: By partnering with a U.S.-based supplier, you can reduce lead times significantly. Not only does this mean fresher, longer-lasting fragrance for your customers, but also more flexibility to adjust your inventory based on demand and shopper sentiment.
• Higher Quality Fragrances: Domestic suppliers often have more control over fragrance development, allowing for more complex and layered scents that appeal to a broader customer base. It’s worth asking your supplier about their fragrance creation process and whether they focus on best-selling, well-researched scents or more generic, cost-efficient formulas.
• Stronger Brand Partnerships: Domestic suppliers often have closer relationships with their retail partners and may be more transparent about where their products are sold and how they perform. It’s worth visiting stores where a supplier’s products are stocked to see firsthand how the sachets hold up—do they still smell fresh? Is the scent strong enough to attract repeat purchases? These factors can give you a clearer sense of whether a supplier’s products will work well in your retail environment.

Choosing the Right Supplier

When evaluating a sachet supplier, a thorough vetting process can help you identify potential risks and find a good fit for your goals. Here are some questions to ask that will provide helpful insight when sourcing:

• Transit Time: How long does it typically take for products to reach my store? Can transit time be lengthened during peak seasons?
• Fragrance Quality: Can you describe the fragrance components used in your sachets? Are the fragrances natural or synthetic? What is the anticipated fragrance duration?
• Market Presence/Saturation: Which other retailers do you work with, and how many? How is your brand differentiated from competitors?
• Comp Shopping Opportunities: Where can I see your product currently stocked in stores?
• Customer Support: What kind of customer support and marketing resources do you offer?
• Retail Success Stories: How well do your products perform with other retailers? How many sachets should I expect to sell per store per week?
• E-commerce Presence: What is your current e-commerce presence? How does online brand recognition support in-store sales?
• Brand Recognition: Will my customers recognize and trust your brand? What is the perceived reputation of your products?
• Cost Comparison: How do your prices compare to other options in the sachet category, and what drives those costs?
• Category Focus: What percentage of your company’s revenue is dedicated to sachets?

Choosing a sachet supplier is more complex than just finding the lowest price. Sachets that have lost their fragrance or don’t resonate with customers can lead to markdowns, missed sales projections, and a diminished brand experience. By carefully considering your options and asking the right questions, you can avoid these pitfalls and select a supplier that supports your business goals.