On day one of Goafest 2022, CEO Vineeta Singh had some tips to share in a keynote session.
Goafest is back after a 2 year hiatus and has started successfully. One of the keynote speakers on the first day of the festival was Sugar Cosmetics CEO Vineeta Singh. Singh is the co-founder and CEO of Sugar Cosmetics. She recently appeared on the entrepreneurial reality show Shark Tank as one of the show’s investors or “sharks”.
Singh took to the stage to give the audience an idea of the impact of the pandemic on her business and to give them a better idea of the brand she is trying to build. Sugar Cosmetics was launched in 2015 and the brand has been growing steadily in India ever since. According to a report by Entrackr, the company announced an increase in operating income – from Rs. 103 crore in FY20 to Rs. 126.f crore in FY21.
“Nearly 60% of our revenue comes from sales in our 30,000 offline stores,” she paused. “However, 90% of our customers continue to find us online. We were a digital first brand at a time when there weren’t many women shopping online. Less than 15% of all online shoppers were women. About 43% of online shoppers these days are women,” she explains.
Singh adds that the effects of the COVID-19 pandemic have been devastating, but have driven consumers to lead digital lives, which has been good for Sugar’s business. She says initially there was skepticism about what Sugar could do – whether a company that had only raised around Rs 5 or 6 crore in funding could disrupt a beauty market in which companies like L’Oréal Paris and Unilever’s Lakmé already existed.
“The interesting thing about the COVID pandemic is that it has given us a level playing field when it comes to the beauty industry. When we distributed our products through e-commerce, it gave us access to thousands of PINs across the country,” she says. Singh also mentions that during the pandemic, the company has focused on creating content — which is designed, scripted, and executed in-house. She says the Last year’s content garnered approximately “billions” of views.
Singh says that in 2015, brands operated very differently, with less than 2-3% of their business online. This has resulted in many companies not catering to young women, which has changed in recent times.
She adds that there are many companies that reproduce identical copies of the same product and this leads to a lack of brand and product differentiation.
When it comes to influencer marketing, SUGAR Cosmetics primarily works with a barter system. The company hires influencers to create content that is then promoted internally, and both parties gain visibility in the process.
According to Singh, makeup is always ambitious in nature and to entice a customer to buy makeup, it is important to educate them on how to use it – this is where the company’s content game comes in. Game.