Vineeta Singh, CEO of colour cosmetic start-up SUGAR Cosmetics, loves being called a challenger to Lakme. Her four-year-old brand, which is on the verge of clocking Rs 100 crore revenue, is quite popular among millennial women living in metros.
Although close to 70 per cent of her business comes from the metro cities, Singh expects her next phase of growth to come from tier-2 cities. SUGAR is also considering an IPO over the next few years to fuel its growth.
"We did a pilot by setting up a kiosk at a mall in Siliguri (in West Bengal), which has got us very good response. We are now looking at opening a store in Guwahati." The company, which started off as an online brand, is looking at opening 100 stores by end of 2020, bulk of which will be in tier-2 towns. It is currently available in over 900 multi-brand stores and has six standalone stores in Amritsar, Delhi, Bangalore, Hyderabad and Kolkata.
SUGAR Cosmetics has recently entered US and Russia. "Our products try to solve the needs of Indian women and the US has lot of consumers from Indian origin or from the east who are looking for colour cosmetics that suit their skin tone," explains Singh.
Colour cosmetics is growing at a rate of 20 per cent year-on-year. Singh doesn't see too much of a challenge in scaling up to be a Rs 500-600 crore brand provided she gets her distribution right. Lakme, according to her, is more of a legacy brand and there definitely is space for a brand which understands the needs of millennial Indian women.