SUGAR Cosmetics Expansion Plans: SUGAR Cosmetics is looking to expand offline to 60,000 stores over the next 12-15 months

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Direct-to-consumer beauty brand SUGAR Cosmetics aims to double its revenue and expand its offline presence to more than 60,000 stores over the next 12 to 15 months, Vineeta Singh, co-founder and CEO of SUGAR Cosmetics, told BrandWagon. Online. “Physical stores account for around 65% of our revenue. Over the past two years, we have continued to add shelf space as other brands move out of retail. In FY23, we expect the offline retail share to be around 70%,” Singh added, on the sidelines of Goafest 2022. Currently, SUGAR Cosmetics is available in 30,000 stores in the country.

The company claims that 60% of global business comes from external markets at Tier 1, while the share of international markets (which includes the Middle East, the United States and Nepal) is around 7 to 8 %. “International markets will continue to be single digits as we focus on growing the business in India. We will focus on those markets once we slow down our trajectory in India,” Singh said, adding that for expansion to occur in other countries, at least 30-40% of SKUs ( SKU) of the company should be relevant for this. market.

Interestingly, Singh expects offline retail as a channel to continue to dominate over the next 10 years in terms of purchases, while online platforms such as Instagram and YouTube will be used to Discovery. “For women, learning makeup has been a very important part of consumption and purchases. Until now, this learning process happened in stores. However, over the past couple of years, we’ve moved that conversation to digital platforms. On YouTube and Instagram, content around beauty is one of the most popular and viewed categories, not only in English but also in regional languages,” she explained.

In January, Vellvette Lifestyle, the parent company of SUGAR Cosmetics, acquired a 51% stake in skin and hair care brand ENN Beauty. The company says the skincare category accounts for less than 5% of overall business today. Also, it aims to focus more on the cosmetics category, in the future.

When it comes to marketing, SUGAR Cosmetics aims to spend primarily on social media and TV. The company is looking to tap into young women who search for beauty-related content online.

Read also: Studio Pepperfry represents more than 35% of global activity: Naveen Murali, Pepperfry

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