Damn. A few days ago, my missus bought a $185 perfume from David Jones for a friend. I randomly decided to google the perfume because i had never heard of it. Found the exact same perfurme at Chemist Warehouse for $70!! WTF. How is David Jones putting such margins??
Because they know people like your missus will buy at that price, without checking anywhere else for a cheaper deal.
If I remember correctly, the Chemist Warehouse stock are grey imports.
So what?
Have bought heaps of perfumes and after-shaves of different big-name brands over the years from Chemist Warehouse and never an issue.
There's nothing wrong with it - just saying that that's why there's a huge price difference. Chemist Warehouse cuts out the middleman (official local distributor) that would otherwise add their own huge margin on it.
Lots of designer brands are quite fussy about where their products are sold. If a brand wants to stay in the high end market, they wont want to be (officially at least) associated with cheap discount stores or just any store.
Issue with grey imports is uncertain chain of custody, particularly in transport and storage processes. Fragrances are chemicals, and are sensitive to temperature and sunlight. I've seen several CW store their fragrances by the window, in the sun.
Lots of designer brands are quite fussy about where their products are sold.
You're absolutely right. Those high end brands don't even like having sales because they think it "cheapens" their products. They'd rather throw in 'freebies' during promotional periods rather than drop the prices.
For consumers, the grey import perfumes often make sense because the prices can be less than half of what it would otherwise be if they get it through the official channels. Especially if it's purchased through a reputable company like Chemist Warehouse, who if push came to shove, I think would stand behind the products they sell to avoid damage to their reputation. If someone brought back a suspected counterfeit or "below par" product, I think they'd be more than happy to refund it. And worst case, the money saved can be used to buy another one (or two).
The last few years, when I want to cologne or perfume, Chemist Warehouse is the first place I look and if it's not available there, then I look to official channels.
Actually it might not be only margins(Margin is definetly large part but many factors to consider) :
* Perfume's manfuacture country could be different. Don't know how they are different, but sometimes, country of manufacture provides sense of authenticity and originality. (leather shoes made in Italy vs made in Thailand form same brand maybe. )
* Perfume from grey market or third party sales routes are definitely cheaper. Chemist warehouse had been on news for this .
* CW sometimes has large stock and sometimes some perfumes will not go full price. Hence half price, discounts etc. CW is large retail chain.
* Personally I have not encountered but many says chemist warehouse sells knockoffs, imitations perfume. so cost is way below RRP
* David Jones/Myers does not need to do sale on premium perfumes. Sometimes, they do :D . Chemist warehouse does sale frequently. Slash on price.
usually its EDP vs EDT. Also the concentration could vary for different regions to lower cost.
old news. I remember going to myer a while ago and finding something nice, but they had no stock besides display. Turns out it was $50 cheaper at the perfume connection outside anyway, lucky me. (yes it was still the same pack size and EDP vs EDP not EDP vs EDT)
Only issue I have at CW is usually they don't have testers of anything there besides a couple so you have to know exactly what you're after.
And margins? DJ and myer just sell for RRP usually
Chemist Warehouse would probably be buying thousands of bottles of perfume and would be getting super discounts whereas Myer/David Jones may only buy a few hundred bottles.
Some people buy things from Myer/David Jones as it's a status symbol thing and are prepared to pay for it, whether it's worth it or not.
The CW outlets are often in a stand alone run down building. =Cheaper rent
Rent per m2 at those big shopping centres is massive.
DJs gives you convenience and free gift wrapping.
Grey market definitely but, no way CW, a pharmacist would knowingly sell counterfeit products.
The two products look the same but are different.
What do you mean the two products look the same but are different?
The look similar but have disparity
The product they are selling is more than just physical item.
What i noticed is chemist warehouse sell old batch ( check the year) and often product that wouldn't make it on the shelves in paces like Myer/ Sephora/David Jones . I wouldn t be surprised that they got their stock from the unselling product from other department store. If you have a good nose, you should compare the same perfume: one from myer/david jones and one from chemist warehouse and you would realised why the price is different. Same product, same name but smell differently….
Check out other online retailers like Amazon. They maybe even cheaper than CW. That’s the case when I bought the CK One last time.
From what I’ve been told, Myer, DJs and Chemist Warehouse actually share the same supplier for their ranges that aren’t sold in concession stores like Libertine etc.
Smell is TOTALLY different, I live in Australia for 20 years and always bought chemist warehouse perfumes for myself! However, I did buy the same perfume for David jones and Myer for gift and I could tell the difference. My colleague would buy perfume only from DJ and it smells much better whole day. In short , Myer and DJ perfumes smell light and classy while CW perfume smells overpowering and like alcohol and hence the price difference. Now I never buy perfume from CW and everyone comments on how good do I smell (which never happened before)
Never understand why people wear perfume ? And $185 ? lol !