Net revenue

Vineeta Singh, CEO, SUGAR Cosmetics, Retail News, ET Retail

New Delhi: Direct-to-consumer (D2C) beauty brand Sugar Cosmetics is aiming to achieve revenue of Rs 500 crore this year and plans to list on the stock exchange in the next few years, co-founder and CEO Vineeta Singh has said.

Speaking during a fireside chat at the ETRetailTech Summit in Mumbai, Singh shared a perspective on the growing cosmetics market and his journey with the brand.

“In terms of market share, we are the third largest makeup brand. We managed to get here thanks to our obsession with the young woman,” she said, adding that the firm had identified an important trend in young women which was different from the previous one. generation – only 1% trust ads and 33% trust a blogger’s review.

Singh said product consumption has been driven by young women participating in the workforce and online education is playing its part. “We have 300 million impressions, 4 billion views on our content in a month, which is 10 times bigger than the next brand. So it helps 90% of our consumers to discover us digitally, but only half of them actually buy us.” on line.”

She said beauty as a category receives very high engagement on YouTube across languages ​​and social media and that the explosion of e-commerce has helped the company grow.

Online vs Offline

Singh thinks offline channels help build trust. “The moment we went offline, our online sales increased,” she said, adding that there should be price parity and that heavy online discounts should not be given, until the online market grows and the product is available offline.

Speaking of offline which still accounts for 85% of the overall market, she said, “I love offline because the CAC (customer acquisition cost) is really zero. Once you set up the store and break even, it’s infinite leverage because every single time the consumer walks in, you’re not really spending CAC.”

Earn consumer trust
Singh says gaining consumer trust isn’t easy as only a few millennials trust celebrity ads and trust has shifted to influencers. Nano or micro influencers have close to 4-5% engagement, while celebrities and mega influencers have less than 2%. So their team works to find the right influencer with a certain level of engagement and authenticity. She also said good content helps the company build its brand.

Growth plans
Regarding the continued growth of the brand during COVID, she said that they continue to take up shelf space and other brands leave shelf space at this time. She said: “It was still tough because overall the category didn’t have momentum. Our target is to reach a net income level of Rs 500 crore this year. And we want to keep growing. because in the next 2-3 years, we want to register the company.”