Business Identification
The little business will be “XYZ Candles,” a new start-up candle company. This business specializes in the creation of fragrant candles. Traditional scented candles are the center of this sort of business, but they can also specialize in developing novel smell combinations. Furthermore, it specializes in so-called novelty candles, whose manufacture is limited to certain events (Christmas, Birthdays). The XYZ Candles company’s purpose is to capture the beauty and soul of candles from the past and now, lighting locations all over the world with their glow and beautiful aromas. The firm produces eco-friendly, reusable packaging and is dedicated to using green modes of transportation in logistics as part of its commitment to a worldwide ecological concern as well as the rising global climate change issue.
The Nature of the Industry and Its Potential Growth
Despite the fact that mankind no longer utilizes candles as a source of light, candles are still manufactured in vast quantities. Candles are lighted at religious events and used to adorn tables during meals and parties (Brans, 2020). On birthday cakes, several candles are lighted, as is customary. Furthermore, many people who enjoy lighting scented candles in the bathroom are too accountable for the recent widespread usage of candles. Candles appear to have been employed as a source of light in almost every society.
The first candle, similar to the one used today, was invented by the Roman Empire. Since the Middle Ages, the advent of the whaling business in the late 18th century has brought about a significant change in the history of candle manufacture (Ibrahim et al., 2021). Spermaceti, a wax made from sperm whale blubber crystallization, has gained popularity (Ayres, 2021). The majority of the key events that influenced modern candle making occurred in the nineteenth century. Michel Eugène Chèvrel, a French scientist, figured out how to extract stearic acid from animal fatty acids (Brans, 2020). Stearin candles are still quite popular in Europe and the United States today. However, paraffin wax was the most significant historical source for candles. After chemists understood how to extract and purify the oil, paraffin wax was developed in the 1850s (Jou et al., 2020). It had no stench and burned cleanly, and it was also more cost-effective to produce.
The candle business has evolved to be a multibillion-dollar sector, with market research projections indicating that it will continue to rise. Candles, for example, are one of the world’s fastest-growing small companies. Candles and allied goods are used by 7 out of 10 US households, doing this a growing business with significant demand (Brans, 2020). Handmade candles are more durable than machine-made candles, which is enough to persuade customers to choose handmade candles over machine-made candles.
The worldwide population’s average per capita and disposable income is rising, particularly in emerging nations, contributing to the expansion of the global candle market. Consumers with a high level of affordability spend a lot of money on increasing their standard of living and buying a lot of stuff (Brans, 2020). This component is mostly responsible for the worldwide candle market’s expansion. The rising consumer disposable income has resulted in increased consumer purchasing behavior. Consumers are prepared to spend more on domestic products, which is increasing the demand for scented candles (Ibrahim et al., 2021). The increased popularity of eco-friendly candles for home design is predicted to boost the global scented candle industry. The increased usage of scented candles as a home care product is credited with the market’s rise.
Overview of the Industry Competition
Candles are made with different waxes, including paraffin, gel wax, soy wax, and other natural-based waxes. Bath and body goods, incense, cleaning products, pet products, handmade cosmetics, and homemade natural soaps are all available from candle companies (Ayres, 2021). In addition to market diversity, this is one of the key factors in increasing market competitiveness. Handmade candles and soaps are becoming increasingly popular as consumers become more aware of their higher quality.
Greater awareness of the product’s use in various forms of candle massage and aromatherapy is driving the scented candle business. Scented candles are commonly utilized in these therapeutic treatments because they assist in producing a meditative frame of mind by creating a pleasant ambiance (Ayres, 2021). Essential oils are used to give aroma to scented candles, making them excellent for soothing the brain as well as energizing the soul (Jou et al., 2020). Furthermore, each aroma has its own therapeutic effect, which is why there is an increasing demand for personalized scented candles for treatment and relaxation in a manifest state of health.
Another possible source of increased rivalry, as a result of advancements in decorative candle technology and design, is the LED candle industry. Because of its benefits over traditional candles and the growing awareness of remote electrical gadgets, this industry is expected to develop (Brans, 2020). The conventional candle market will most certainly be hampered for a while, but not significantly. Furthermore, buyers are constantly becoming more concerned about social and environmental sustainability.
Industry Business Models
To prosper in a commercial candle business, a well-thought-out strategy and business model are needed. Companies and organizations in a developing market use a variety of business models. A minimum of two or three staff with expertise in the candle industry would be required for a candle firm to get off the ground. Furthermore, one person is required for delivery and purchasing.
The necessity of consistency over quantity is the primary concept of the candle producing business model, as it is in many other fields. While many well-known brands and firms have already joined the global candle industry, the average target market employs a number of essential models and methods. First, intriguing aromatic oil mixtures. All of the products used in the candle industry are purchased from the same basic vendors. In this case, the most important tactic is to experiment while keeping quality in mind. Instead of delivering the conventional fruity and piney scents, a brand line with more character is required (Brans, 2020). Smells that take a while to grasp fully provide a sense of mystery and curiosity in the minds of potential clients.
Community participation and digital presence are also significant aspects of contemporary business models. In today’s candle market, thoughtful preparation of post kinds that emphasize what the firm offers for consumers is becoming a significant aspect (Ipsmiller et al., 2022). Not just for newcomers but also for established market players that are continually seeking new customers, studying trends and learning about different sorts of social networks is a crucial model.
References
Ayres, R. U. (2021). The History and Future of Technology: Can Technology Save Humanity from Extinction? Springer Nature.
Brans, R. (2020). Candlemakers. Kanerva’s Occupational Dermatology, 1789-1792.
Ibrahim, K. H., Abba, M. A. S., Margret, K. C. O., Ogechi, I. V., & Chinenye, A. V. (2021). Apiculture (Beekeeping), an Easy Economic Venture Irrespective of Age, Gender, Religion and Profession. International Journal of Applied Agricultural Sciences, 7(4), 169.
Ipsmiller, E., Dikova, D., & Brouthers, K. D. (2022). Digital Internationalization of Traditional Firms: Virtual Presence and Entrepreneurial Orientation. Journal of International Management, 28(4), 100940.
Jou, J. H., Wu, C. H., Su, Y. T., He, Z. K., Dubey, D. K., Tsai, Y. F. & Zeng, H. T. (2020). Unveiling the mythical candles. Building and Environment, 169, 65.