Smelling Success: The Israeli Technology Turning Scent Into a Winning Shopping Experience

Imagine watching a war movie. Besides the sights and sounds, you also smell smoke, fire, and gunpowder. You're not imagining it – you're actually smelling it. This isn't fantasy. This is the experience the Israeli company iRomaScents presented at the IFA exhibition in Berlin about three years ago, and from there, after years of development and learning, it found another business opportunity for this application, specifically in fragrance stores.

"Of the five senses, three are transmitted through the air: light, sound, and smell," says Avner Gal, co-founder and CEO of iRomaScents. "When we think about digital media, it's common to consider only the senses of sight and hearing, and the next logical step was to implement technologies that take into account also the sense of smell. Different people in the same location will likely see and hear their surroundings similarly, even if not identically. Smell, however, is more subjective: I may really enjoy the scent of roses, while someone else may not at all. Unlike color, for example, whose components can be defined using primary colors, it's still unclear how to 'crack' the structure of smell and define its components."

"When it comes to sensory experiences, humanity has succeeded in mastering the sense of sight with video devices, and hearing with audio devices. The product we developed can emit scents in a controlled manner, synchronized with various events. The device serves as a platform for diverse applications: scented movies or scented computer games that allow users to smell different scenes as the scents are synchronized with the occurrences, and more. The device includes a 'drum' with 45 different scents, which adjusts to the specific scent as required," says Gal.

"One of the product's applications is retail. Purchasing perfume today is a process that involves numerous, mostly random, sniff tests, without a structured order. In many cases, after a large number of tests and without being able to decide, customers become frustrated and leave the store without purchasing.

The current conversion rate stands at about 15%. Through a short and structured questionnaire by iRomaScents AI Wizard™, we provide consumers, based on their objective preferences, with the most suitable product, along with three similar alternatives.

As a result, the conversion rate is over 90%. Additional advantages of the product are preventing theft (a painful problem in the field) and substantial savings in the amount of perfume used for testing (testers), in addition to shortening the time and increasing efficiency in the process. Without a doubt, this is the next generation of perfume sales, as evidenced by the results in the field."

According to Nicolas Hieronimus, CEO of L'Oréal, about 70% of pharma customers feel lost amidst the multitude of options, leading to 'decision paralysis.' With approximately 17,000 different products on the market, it's easy to understand the difficulty in making a decision. A well-informed and structured process can solve this problem.

AI Wizard: The Spotify of Scents
Gal served 23 years in the Israel Navy as an R&D engineer, retired with the rank of Commander, and accumulated over 45 years of experience in engineering, management, R&D, and founding high-tech companies. He holds academic degrees in electrical engineering and business administration, has published dozens of professional articles, registered several patents, and is a guest lecturer at the Technion on entrepreneurship and innovation.

His partner, Erin Berry, VP of marketing & strategic partnerships, brings over 20 years of experience in marketing and mass communication. The two have known and worked together for two decades, founding iRomaScents in 2020.

The idea for the retail application took shape during the COVID-19 period. The questionnaire, a basic component of the application, was designed to the best of their understanding, but without the possibility of applied testing due to travel restrictions. "We did what we thought was right," Gal recounts, "and then, as soon as the skies opened, I boarded one of the first planes to London.

Erin and I went from store to store, examining how consumers purchased perfumes and how salespeople worked, focusing on the questions and answers, as well as consumer behavior. Finally, the insight came. We realized that the questionnaire we had designed was not optimal. Therefore, we went back to the 'drawing board' and revised all the questions, based on the insights we gathered during the field visit."

In January 2024, they presented their revolutionary product at the CES exhibition in Las Vegas. The system, which requires minimal space and operates on batteries, allows full flexibility in its placement in the store. The system supports up to three devices, meaning up to 135 different scents in a single stand. The implication for perfume retailers is clear: no need for testers on the shelf, no perfume thefts from the store, and staff efficiency significantly improves.

The feedback was quick to arrive. "We placed the model before visitors and asked them to try it," says Gal. "The overwhelming enthusiasm of the audience instilled in us the feeling that we had done the right thing. The recurring question was how this amazing technology isn't yet in every perfume store?"

How does it work in practice?
"The customer answers a short, anonymous, and intuitive questionnaire, addressing two categories: personal preferences and desired perfume characteristics. All questions are closed (choice from defined options), making the selection easier. At this stage, they smell nothing, so the olfactory system remains fresh.

Only after processing the data does the device present one primary recommendation and three similar alternatives. Only then can the recommended product be smelled from the device. To remember the details of the chosen product, the system prints a small sticker with the perfume's name and details, which can be attached to a scenting paper (blotter), ensuring both product information and scent are preserved. It is important to note that the entire process takes less than a minute."

What is the most surprising statistic?
"The average conversion rate in the perfume industry stands at only about 15 percent. With our system, it rises to 90 percent or more, in less than a minute! We saw this in practice: at pop-ups we operated, over 90 percent of customers who tried it stated they were willing to purchase the perfume the system recommended."

Store owners who adopted iRomaScents discovered that the device carries an additional layer of value they hadn't expected: real-time consumer data.

"Every use effectively generates data of great importance. Which perfumes were chosen, which preferences recur, what the difference is between morning and evening customers, etc. This information is analyzed and delivered to retailers and manufacturers in a detailed report," says Gal.

And what can be done with this?
"To know exactly what works and what doesn't, in compatibility with target populations, to understand consumer preferences according to various parameters, and accordingly, to optimize marketing and sales efforts. In addition, this data can also help with smart inventory management. Furthermore, this data can even assist in planning products aimed at specific target populations. Until now, this data was not available."

Beyond perfume stores, iRomaScents is, as mentioned, a platform that enables additional applications. Scented movies, where it all began, is still one of the company's most prominent applications. Each seat in the cinema hall is equipped with a small unit that operates in synchronization with the projection room. The scent is directed in a narrow beam to the individual viewer only and does not pass to their neighbor. Thus, when the hero on the 'big screen' sips coffee, the viewer smells the cocoa beans.

Another intriguing application is actually the simplest to understand: sending a scent from a smartphone or computer anywhere. Just as one can send a photo or a voice message today, iRomaScents allows 'sending a scent,' and the recipient, equipped with a device at home, will receive it as a message.

iRomaScents currently operates in Brazil and Dubai, and sales recently began in the United States. The team is now focused on breaking into the American market and entering Israel. For local pharmacy and perfume chains, this is an opportunity to be among the first to adopt a technology that has already proven itself in various locations.

Where do you see the company in five years?
"We are determined to make scent a central component of the purchasing process. Our technology is not limited to perfume stores and can be applied in education, entertainment, virtual reality, and more, as well as in the medical field.

The idea is simple: to enable everyone finding their ideal scent. In my opinion, every perfume store will adopt iRomaScents. The perfume world may be conservative, but once retailers see the numbers, they will join," concludes Gal, not as someone selling a dream, but as someone who already knows the numbers, from which the slogan Smell and Smile™ was also born.

For more info: iRomaScents.com

Partnered with iRomaScents