Comparison between a crowded mass-market shelf and a luxury niche shelf in a perfume store

Oct 29, 2026

More SKUs Do Not Mean More Growth

In cosmetics companies, launching new products is one of the most visible routes to growth. A new range, a new scent, a new colour, new packaging… Every launch creates movement. But not all movement creates value.

Brand

Cosmetics

Portfolio Management

Insight

Good product management is not constantly launching new products; it is knowing why each product is on the shelf.

When a portfolio expands without control, the shelf becomes cluttered, purchasing and production planning become harder, stock capital grows and high-performing products can lose visibility. Especially when perfume, personal care, home fragrance and gift sets come together in the same organisation, what must be managed is not the number of products but the role of each product.

Analysis

A portfolio has an entry product that makes it easy to get to know the brand. It has a hero product that makes consumers remember the brand. It has an upper-segment product that lifts price perception. It has a complementary product that grows the basket. And it has a gift product that enters different consumption moments.

Managing all of these with the same sales expectation is a mistake. For every SKU, sales velocity, contribution margin, repeat purchase, days of stock and cannibalisation within the portfolio should be tracked separately.

A visual merchandiser arranging perfume bottles on an illuminated display table in a luxury store

Perfume bottles arranged like chess pieces on dark stone and a margin chart

More SKUs Do Not Mean More Growth

In cosmetics companies, launching new products is one of the most visible routes to growth. A new range, a new scent, a new colour, new packaging… Every launch creates movement. But not all movement creates value.

Brand

Cosmetics

Portfolio Management

Insight

Good product management is not constantly launching new products; it is knowing why each product is on the shelf.

When a portfolio expands without control, the shelf becomes cluttered, purchasing and production planning become harder, stock capital grows and high-performing products can lose visibility. Especially when perfume, personal care, home fragrance and gift sets come together in the same organisation, what must be managed is not the number of products but the role of each product.

Analysis

A portfolio has an entry product that makes it easy to get to know the brand. It has a hero product that makes consumers remember the brand. It has an upper-segment product that lifts price perception. It has a complementary product that grows the basket. And it has a gift product that enters different consumption moments.

Managing all of these with the same sales expectation is a mistake. For every SKU, sales velocity, contribution margin, repeat purchase, days of stock and cannibalisation within the portfolio should be tracked separately.

More SKUs Do Not Mean More Growth

In cosmetics companies, launching new products is one of the most visible routes to growth. A new range, a new scent, a new colour, new packaging… Every launch creates movement. But not all movement creates value.

Brand

Cosmetics

Portfolio Management

Insight

Good product management is not constantly launching new products; it is knowing why each product is on the shelf.

When a portfolio expands without control, the shelf becomes cluttered, purchasing and production planning become harder, stock capital grows and high-performing products can lose visibility. Especially when perfume, personal care, home fragrance and gift sets come together in the same organisation, what must be managed is not the number of products but the role of each product.

Analysis

A portfolio has an entry product that makes it easy to get to know the brand. It has a hero product that makes consumers remember the brand. It has an upper-segment product that lifts price perception. It has a complementary product that grows the basket. And it has a gift product that enters different consumption moments.

Managing all of these with the same sales expectation is a mistake. For every SKU, sales velocity, contribution margin, repeat purchase, days of stock and cannibalisation within the portfolio should be tracked separately.

More SKUs Do Not Mean More Growth

Related reading

More SKUs Do Not Mean More Growth

Related reading

More SKUs Do Not Mean More Growth

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