- 7 years, sales growth of 700 percent, and retail outlets of 700 +. Sugar Cosmetics, a business that has risen at an incredible pace in a very short period, owns those figures.
7 years, sales growth of 700 percent, and retail outlets of 700 +. Sugar Cosmetics, a business that has risen at an incredible pace in a very short period, owns those figures.
With steady sales growth of 700 percent accelerating and more than 770 retail touchpoints spread across 92 cities, Sugar Cosmetics has emerged as one of India’s most successful and important color cosmetics brands. While 45% of revenue is generated online, another 45% comes from retail outlets and the remaining 10% from the international market.
In a short span of seven years, SUGAR has developed a Rs 100 Crore company. At a time when big players such as Lakmé, L’Oréal, and MAC Cosmetics dominated the market, IIM Ahmedabad alumni Vineeta Singh and Kaushik Mukherjee found the beauty brand SUGAR in 2012.
SUGAR goods can be found on their web site and other online sites such as Nykaa and Amazon. SUGAR has achieved remarkable growth, with a team of 100-115 employees. But for that young warrior, there is no stoppage.
The retail expansion of the company alone represents a great measure of its growth rate. The original shop count for Sugar was 87 stores. The number had reached + 400 by February 2019.
Because of the brains behind the company, the Mumbai-based makeup brand gained broad acceptance among millennials (which fuelled the aggressive expansion).
Singh and Mukherjee, the co-founders are both alumni of the renowned Indian Management School, Ahmedabad. The triathlete couple wanted to abandon the comfortable life of high-paying careers to pursue their entrepreneurial ambitions by following their passion.
Sugar has been known as a challenger brand right from its start and has found a sweet spot between cheap drugstore labels and high-end foreign brands. It opened up a new market by offering high-quality products at competitive price points with outstanding ingredients, highly pigmented colors, inclusive shades, and luxurious packaging.
Sugar’s market entry coincided with the success of color cosmetics and make-up artists like James Charles, Jeffree Star, and Kandee Johnson in social media. India is one of the world’s fastest-growing cosmetics markets and is projected to stand at $20 billion by 2025. With a 25% CAGR, Sugar would not have been able to choose a better time.
The brand of color cosmetics is known for its ultra-pigmented makeup of the formula for the lips, skin, face, and nails. It’s jet black matte eyeliner, and two of its hottest items are the Ace Of Face Foundation Ring. Sugar products are produced in Germany, India, Italy, the USA, Korea, and China to complement the Indian skin tone.
In addition to meeting the quality of pricey cosmetics brands in its formulations, Sugar is also gaining the interest of customers with its packaging. Whether placing a blending brush on the opposite end of the foundation stick or having a mirror and cushion in the loose powder tub, the company has been paying attention to the little details that have helped create an outstanding product experience.
The company’s success mantra is based on delivering value and investing in business areas that allow them to deliver value. Singh explained how a tremendous amount of time the company spends fine-tuning the performance of every product.
For example, foreign brands have glamorous celebrities as their ambassadors for the global brand. But Sugar doesn’t believe in spreading the ‘ideal beauty’ image by roping in ambassadors. The brand focuses instead on promotions leveraging the insights provided by end-users. This is not only an economic marketing tactic but an ethical and moral one as well.
The company opened its first brand outlet in North India in September 2019 after raising rs. 70 crore from A91 partners in January 2019. As previously reported, by the end of this year Sugar is looking to open 200 + more outlets, which will bring the total to 1000. Opening channels are on their radar in other countries too. In August 2019, the cosmetics company also dipped its foot with its sheet masks into the skincare industry.
The beauty field has grown, and how! Elitism and exclusivity are no longer trendy and because millennials appreciate authenticity, inclusiveness has become the hottest selling point. For that very reason, for Sugar Cosmetics, the future looks bright, banking on inclusiveness, variety, and consistency.