Developing a new fragrance is a creative, competitive brief system where multiple perfumers pitch ideas to a client, similar to how ad agencies pitch campaigns. The process, which can last for years, focuses on translating brand attributes into a sensory message rather than just chemical formulation.
While consumer testing weeds out failures, it often steers products towards familiar scents, stifling disruption. Givaudan's CEO notes that iconic fragrances are often launched based on conviction, not test results, as they introduce something consumers don't yet know they want.
Givaudan invests years of creative work into developing a client's fragrance for free. In return, Givaudan owns the intellectual property of the final formula. Revenue comes from exclusively manufacturing and supplying that proprietary ingredient to the client for the product's entire lifespan.
Givaudan's products represent a tiny fraction of a client's COGS—as little as 0.5% for flavors. Yet, taste and smell are the primary drivers for consumer repurchase. This asymmetry makes their contribution highly valuable and less price-sensitive, as clients won't risk compromising the key driver of liking to save on a minor cost.
The key to being a great perfumer isn't a "magic nose," but immense resilience. In Givaudan's competitive process, a perfumer faces rejection on 80-90% of their projects. The ability to endure constant setbacks and maintain creative confidence for the next brief is the most critical skill they hire for.
The company avoids bureaucratic bloat by ensuring its leadership has deep, hands-on operational experience. Leaders who have worked in sales or operations can't be "taken on a ride." This fosters a pragmatic culture where, as the CEO states, "bullshit and hot air... doesn't survive more than three seconds."
Instead of a rigid career plan, the CEO advises young people to experiment to find what they truly enjoy. The key is taking risks on roles you're not fully prepared for. This "jumping into the swimming pool" approach forces learning, uncovers hidden talents, and leads to more organic and fulfilling growth.