In recent decades, the global fragrance market has undergone fundamental transformations; a shift in market dynamics—driven by rising demand for personalized products and evolving consumer attitudes—has enabled certain industry offerings, such as artisanal fragrances, to secure a distinctive position by leveraging creativity and focusing on limited-batch production. One of the most important characteristics of handmade perfumes is the move towards creating a unique and personalized experience for the consumer.However, success in this industry does not depend solely on the quality of the fragrance or the use of expensive raw materials, and understanding the interaction between formulation economics and customer perceived value is a tool for success in strategies for creating competitive advantage. The present study, with a library approach, conceptual-analytical review, and by citing and examining reliable scientific sources published between 1990 and 2026, reviewed the concepts, literature, and identified and explained the factors affecting the success of the handmade perfume industry. The findings show that formulation economics, as a framework for creating a balance between quality, cost, and perceived value, plays a pivotal role in the success of this business. Also, factors such as creativity, branding and storytelling, sensory product experience, digital marketing, value-based pricing, quality of raw materials and production, and innovation in formulation in the form of an interactive system are important because of their impact on customer perception in order to create competitive advantage. The results of this review show that success is achieved when the technical features of the product can have an acceptable impact on perceived value and customer loyalty by creating a distinctive experience.