Table of Contents

The beginning of Sugar Cosmetics

Vineeta Singh, the Founder and CEO of Sugar Cosmetics, commenced her entrepreneurial journey with the establishment of ‘Fab Bag,‘ a venture initiated in collaboration with her husband. The brand’s core concept centred around providing a curated selection of makeup and beauty products sourced from international brands to the discerning Indian woman. The expertly curated bag, reflecting the latest trends in the industry, was made available at an affordable price point of INR 600.

Over time, Fab Bag gained substantial traction, amassing profiles of more than 2000 women at its peak. This growth was propelled by positive customer reviews and a strategic influencer marketing approach, a methodology that would later prove instrumental in the subsequent success of Sugar Cosmetics. The brand’s evolution was marked by a consistent commitment to delivering quality products and staying abreast of prevailing beauty trends.

Sugar Cosmetics-Founder

Vineeta Singh, the esteemed Co-founder, and CEO of the renowned makeup brand SUGAR Cosmetics, is a distinguished figure in the realm of self-made women entrepreneurs in India. A graduate of IIT Madras and IIM Ahmedabad, Singh’s journey towards success took a unique turn when, at the age of 23, she chose entrepreneurship over a lucrative job offer with a Rs 1 crore package.

While her initial ventures in the form of an insurance company, a lingerie startup, and a beauty subscription service faced challenges, Vineeta Singh persevered. Ultimately, her determination bore fruit with the establishment of SUGAR Cosmetics in 2015, which has now evolved into a household name. The direct-to-consumer (D2C) makeup brand has garnered widespread popularity, backed by notable entities such as L Catterton, Stride Ventures, SAIF Partners, Anicut Capital, RB Investments, and the renowned Bollywood superstar Ranveer Singh.

Reflecting on her journey, Vineeta Singh acknowledges that struggles and failures were integral to her growth, shaping her into the person she is today. Despite facing setbacks, her resilient spirit and unwavering commitment to her vision led to the triumph of SUGAR Cosmetics. In her own words, Singh emphasizes the significance of self-belief and regrets not having embraced it more in her early years, underscoring the value of faith in one’s capabilities and decisions.

Investor funding

Date	Round	Amount	Lead Investors
September 3,2022	Angel Round	–	Ranveer Singh
May30,2022	Series D	$50 million	Asia fund of L Catterton, A91 Partners Elevation Capital, and more.
October 21,2020	Debt Financing	$2 million	Stride Ventures
October 21,2020	Series C	$21 million	A91 Partners, Elevation Capital, India Quotient, Stride Ventures
Mar 8,2019	Series B	$12 million	A91 Partners, Anicut Capital, India Quotient
Jun 1,2017	Series A	$2.5 million	India Quotient, RB Investments Pte. Ltd.

Shareholders Breakdown

Sugar Cosmetics Financials

₹in Crores

FINANCIALS	FY21	FY22	FY23
Revenue	126.36	222	420.2
Expenses	149	300	505
EBITDA Margin	(11.98) %	(30.19) %	(16.5) %
Profit/Loss	(21.1)	(76.2)	(76)

Sugar Product Strategy

The “FAB BAG”

Kaushik Mukherjee and Vineeta Singh founded the cosmetic subscription service “FAB BAG” in 2012, offering a monthly surprise beauty box for Rs 599. Each box contained a curated mix of five products from the categories of cosmetics, bath and body, skincare, haircare, and fragrances, predominantly featuring new and lesser-known brands sourced internationally.

The FAB BAG concept provided the team with valuable insights, creating an environment to discern and understand their target market. SUGAR, a brand associated with FAB BAG, aimed to establish itself as a premium brand. The company’s growth strategy relied on enticing mass consumers to upgrade while simultaneously encouraging luxury clients to explore more cost-effective options.

Premium Products

Despite operating on a constrained budget, the team at SUGAR strategically acquired their initial products—an eyeliner and a kohl pencil—from a reputable German producer. The ‘Made in Germany’ label instilled confidence in customers, contributing to a successful launch for SUGAR. During a time when glossy eyeliners dominated the market, SUGAR opted to introduce a matte version, anticipating that their clientele would prefer a product suitable for everyday use. This eyeliner marked the beginning of several successful product launches for SUGAR.

Recognizing the influential role of Instagram in beauty industry marketing, SUGAR leveraged popular trends such as ‘unwrapping videos’ and ‘before and after’ makeovers to enhance brand awareness. The brand’s approach to Instagram influencers is well-balanced, with notable instances like featuring Anmol Rodriguez, an acid attack survivor, in one of their impactful videos. Presently, SUGAR boasts an impressive following of over 2.5 million on Instagram, surpassing competitors like Colorbar.

Unique Packaging

SUGAR initially embraced a fully digital strategy, entrusting design partner Opposite with the mission of crafting attention-grabbing packaging. Opposite opted for a distinctive graphic approach, utilizing low-poly drawings to set SUGAR apart from the prevailing minimal and predominantly black design trend in the industry.

SUGAR-Marketing Strategy

E-commerce Expansion: Shopify and Mobile App

In 2015, SUGAR embraced e-commerce by launching a Shopify store, a platform it still actively operates. The company further expanded its digital presence with a successful app release in November 2019, garnering over 1 million downloads and an impressive 4.5-star rating on both Android and iOS. Social advertisements remain a key focus for SUGAR’s online customer acquisition strategy.

Strategic Retail Presence: Nykaa and Beyond

Debuting on Nykaa in 2016, SUGAR initially relied heavily on the beauty platform, constituting about 80% of its revenue by 2017. Recognizing the need for diversified distribution, SUGAR expanded to other major online platforms like Flipkart and Amazon. However, the challenge lay in cracking the code for offline retail.

Innovative Product Launch: ‘Sugar Play’ for Pre-Teens and Teens

In August 2023, SUGAR Cosmetics introduced ‘Sugar Play,’ an innovative makeup range specifically tailored for pre-teens and teens. This pioneering line combines vibrant colors with formulas curated for sensitive, youthful skin.

Physical Retail Expansion: New Store in Delhi NCR

In July 2023, SUGAR Cosmetics extended its reach with a new brick-and-mortar store at the KW Delhi 6 mall in Ghaziabad, marking a strategic move to establish a physical presence in the Delhi NCR region.

Innovative Makeup Solution: BB Serum-Hybrid Product

March 2023 witnessed the introduction of a groundbreaking BB Serum-hybrid product by SUGAR Cosmetics. This addition to the face makeup selection caters to the on-the-go lifestyle of Gen Z consumers, reflecting SUGAR’s commitment to innovation in the beauty industry.

Sugar Cosmetics – Competitors

The top ten rivals in SUGAR Cosmetics competitive group can be listed as:

Purplle
Marico
Lakme
Maybelline
Lotus Herbals
Blue Heaven Cosmetics
Nykaa
Plum
NewU
Emami

Sugar – Partnerships

Strategic Collaborations: Amazon Prime Exclusive Kit

In August 2023, coinciding with the highly anticipated second season of “Made in Heaven” on Amazon Prime, SUGAR Cosmetics proudly introduces the exclusive “SUGAR x Made in Heaven” cosmetics kit through a strategic partnership, offering customers a unique beauty experience.

Media Synergy: OMP India Partnership

In July 2023, SUGAR Cosmetics entered into a collaboration with OMP India, entrusting the Mumbai-based agency with the comprehensive management of its media strategy. This partnership signifies a strategic move towards enhancing the cosmetic brand’s media presence and outreach.

Celebrity Alliance: Kareena Kapoor Khan Investment

Renowned Bollywood icon Kareena Kapoor Khan has not only invested an undisclosed amount in Quench Botanics but also joined forces with Vineeta Singh and Kaushik Mukherjee, co-founders of Sugar Cosmetics. Becoming a co-owner of this new venture, Khan’s alliance aims to leverage Singh and Mukherjee’s expertise in the beauty e-commerce sector for the scaling of the emerging Korean skincare brand.

Sugar Cosmetics- Future Plans

Global Expansion and Offline Presence

SUGAR Cosmetics has successfully ventured beyond India, establishing a physical presence in Russia and an online footprint in the United States. The brand, founded in 2015, is committed to amplifying its offline standalone locations, aiming to surpass its existing 100 outlets.

Recognizing that 95% of trading in India still occurs offline, SUGAR Cosmetics strategically plans to leverage this market trend. The brand aims to expand and enhance its retail base, emphasizing improved retail marketing and visual merchandising experiences.

Resilient Expansion Amidst Challenges

During the pandemic, SUGAR Cosmetics prioritized safety and sanitation, opening five new brand-owned retail stores. The brand’s resilience is evident in its strategic focus on strengthening direct-to-consumer (D2C) channels, particularly by expanding its mobile app, which has garnered over 1 million installations in under a year.

Future Growth and IPO Plans

CEO Vineeta Singh reveals ambitious plans for SUGAR Cosmetics, targeting revenues exceeding Rs 300 crore. The brand is set to venture into new categories, with an imminent entry into the hair care segment following its acquisition of ENN Beauty. Additionally, Singh shares the company’s vision of filing for an IPO by 2024 or 2025, as disclosed at the ETRetailTech Summit 2022 in Mumbai.

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