SUGAR Cosmetics bets big on offline expansion
SUGAR Cosmetics, which recently raised $50 million in a Series D led by L Catterton’s Asian fund, is stepping up its offline presence in a bid to grow faster. The company said it was open to inorganic growth options and could consider an IPO within the next three years.
Vineeta Singh, co-founder and CEO of SUGAR Cosmetics, said Activity area, “We are strongly focused on expanding offline distribution in line with our omnichannel strategy. Our products are currently available in over 40,000 to 45,000 outlets and we plan to increase this to 100,000 outlets by FY24. We have been quite optimistic about offline expansion in past two years, even during the pandemic and it has given us an edge over other D2C brands that are only now embarking on offline expansion. »
“We strongly believe that millennials and Gen Z don’t think in terms of a specific channel. Brands that can deliver a consistent offline and online experience seamlessly will dominate,” she added.
Focus on level 2, 3 markets
The omnichannel beauty brand is also strategically expanding its offline presence through its own stores. It currently operates 115 stores on its own and plans to increase that number to 200 stores by the end of March. “We are looking at smaller towns to create our own stores. We plan to open our own stores in Tier 2 and Tier 3 markets to introduce our brand to new consumers, especially in areas where we do not have a presence in modern commercial stores and there is no maybe not as much e-commerce penetration. ,” she added.
The company said it is on track to achieve annual sales of around ₹550 crore by the end of this financial year. “We expect consumer sentiment to be very positive over the next few months following the festival season which sees very strong demand for color cosmetics,” Singh said.
Singh said the company only raised prices on select SKUs and largely absorbed the impact of inflationary pressures. “We have a war chest for acquisitions. But we will only go to an acquisition target that has strong business fundamentals. We will continue to evaluate options,” she said. The omnichannel beauty company could also explore IPO opportunities within the next three years, she added.
September 14, 2022