Introduction
Sugar Cosmetics is the fastest-growing premium cosmetics brand. The Business model of Sugar involves its business plan, revenue model, its competitors, SWOT Analysis and many more.
Being an Indian brand, they are keen on providing products meeting the exact requirement of Indian customers. Sugar cosmetics is a fairly new company, but they’re already making waves in the cosmetics industry. They’re known for their affordable, vegan, and cruelty-free cosmetic products.
Sugar cosmetics has become a cult favorite among beauty enthusiasts and has been featured in magazines.
Business Plan
Sugar Cosmetics has a D2C model of business, which also uses an omnichannel approach to sell its products. It helps Sugar sell its products in various eCommerce marketplaces like Amazon, Nykaa, etc.
Talking about their retail presence, they have 35,000 retail outlets in 130+ cities. The company sells a variety of makeup products, including lipsticks, eyeshadows, blush, Coffee Culture Lip Scrub, Lip gloss & liners, Mascara, Aquaholic Hyaluronic Serum, Highlighters & Contour, Coffee Culture Cleansing Balm Stick, and Moisturizers.
The company uses social media to engage with customers, promote its products, and show off new collections. By doing so, the startup has built a strong connection with its customers and gained a loyal following.
Revenue model
The major revenue streams of Sugar Cosmetics include the sale of its products in India and other export sales.
Mid Range products and Matte Range products for Indian Skin tones launched by Sugar cosmetics are what differentiates them from others. Sugar Cosmetics was the first one to acknowledge the gap in the price range.
The brand often holds giveaways and offers discounts to its followers.
Competitors
The industry got a revolution due to Sugar cosmetics, but the earlier players still have got their position intact. Some of the competitors of Sugar Cosmetics are:
- Nykaa
- Estee
- MAC
- Lakme
- Kay Beauty
- L’oreal
- Maybelline
Future Plan
- Sugar Cosmetics is keen on strengthening its omnichannel approach.
- They saw a boost in their social media presence by enhancing their content and videos creating strategies.
- In the coming days, Sugar Cosmetics will also focus on expanding its mobile-based application. It already has 1 million-plus download in just 1 year.
- Sugar Cosmetics will soon expand its business outside India. They already have stores in Russia and a good online presence in the USA. They want to expand in other countries as well.
- To strengthen its D2C channels, the firm is focusing on expanding its mobile app, which has already had 1M+ app installations in less than a year.
Challenges
- The current pandemic has hit every company very badly and some of the startups had to suffer a lot. Sugar Cosmetic’s 60% of the revenue was already dependent on the retail outlets and thus lockdown 1.0 was a big setback for the company. They had to go through various changes such as wage cuts, employment reshuffles, etc. to survive during the hard times.
- The company is doing very well in the beauty industry but they have over 100 competitors whom they need to overshadow. Some of them are very prestigious companies and it is hard to shift their loyal customers.
- The company is expanding not just in India but in foreign countries as well. Its goal is to reach the doorsteps of every customer in the country and make them addicted to its products.
Conclusion
Sugar cosmetics is one of the woman-led startups trying to enter the unicorn club in India. The matte finished cosmetics are highly valued among the youngsters, makeup artists and celebrities.
