After working hard and clearing ITM, At the age of 23 after rejecting a package of 1 Cr, will you do the job for only 10,000 Rs? Well, similar is the story of Vineeta Singh. A girl from a small district of Gujarat took so many huge steps which you and I can’t think of. No one had ever thought that a business started on Shopify with only 2 products is beating brands like Maybelline and Lakme and is now a 3000 Crs company. Sugar Cosmetics with its 3000+ stores is creating a splash in Indian Cosmetics Market. The question is what Vineeta and her team did that a company that started only 5 years ago is defeating big brands today? And most importantly what are those powerful business lessons we can learn and implement in our business? This Post is brought to you by KukuFM about which we will talk later in this video.
The story starts in 2012 when an investment banking fund offers 1 Cr package to IIM- Ahmedabad graduated Vineeta Singh. If you or me were at her place at the age of 23 then we would have happily taken that package. But Vineeta Singh didn’t do it. Many less people know but starting Sugar Cosmetics was never the first preference of shark – Vineet Singh. Her first preference was to start a Lingerie Brand. With the motive to start a lingerie brand in India through E-Commerce, Vineeta Singh pitches her idea to investors. But sadly, wherever she went she got the same answer – Why should we give funding to you, why not to someone experienced?.
Why will people buy from you? And this thing mentally shook Vineeta Singh. And then she decided that Whatever happens, now the startup would be bootstrapped. ‘I don’t want any investor’s money.’ With empty pockets and no experience, but with perseverance Vineeta Singh starts a small service company. This company provided service to other companies to check the background of their employees. They used to checked the background and get money for it. At one time she was getting 1 Cr, now she used to get only 10,000 Rs per month. The business was growing but there was one problem.
The problem was Scalability. Many less service businesses are scalable at a large scale. And most importantly, Vineeta Singh was working but had no interest in this work. This was not her passion And from here starts Sugar Cosmetics. Had anyone thought that a company that hardly had 30 lacs in its bank account will shake the foundation of big brands? The question is what sugar cosmetics did that within 5 years this company’s evaluation is 3000 Crs.? When Vineeta Singh was thinking of leaving her service business At that time she identified a big gap in Indian Cosmetics Market.
The gap was missing Mid Range Segment. In 2015, you would get Maybelline and Lakme at 300 or below. And in the range of 1000 Rs and more, you would get MAC and Estee. But the segment between 300 and 1000 didn’t exist in Indian Cosmetics Market. No brand thought to launch products in this range. Maybelline, MAC, Lakme , Revlon- all these brands whenever launched products, the products were amazing But b’coz these brands are international, so their products were launched on Global Skin Standards. But when Vineeta Singh talked to consumers, she got one insight from many customers. The insight was that these international products didn’t suit their skin.
B’coz Indian skin type is absolutely different. And pollution is also more in India compared to other western countries. So the makeup which girls applied used to get removed in just half day. So no durability and the product also didn’t suit their skin type. B’coz all products were made on basis of Global Skin Standards. And then Sugar Cosmetics launched their Matte Range products. These products used to suit Indian skin, were durable and less expensive. The range was such that girls could use it anywhere. And this thing skyrocketed Sugar Cosmetics sales.
In cosmetics, Innovation is limited. How much can you change lipstick? And Vineeta Singh also knew this. But today if you will see then Nykaa and Sugar Cosmetics are the only two creative brands in Indian Cosmetic market. Do you know that in the initial year Sugar Cosmetics only sold 100 lipsticks? You would be thinking that this brand only sold 100 lipsticks in the initial year, Then what’s so special about it that it grew with such high speed? So the answer is hidden in book – The Psychology of Selling. If you will read this book carefully then you would know many things about buying psychology that were never taught in school and college.
I know none of you will read this book b’coz who has so much time? But you can learn about sales psychology by listening to its audio summary on KukuFM. The audiobook summary of this book on KukuFM has only 6 chapters. So in just 15 mins you will learn the things which schools and colleges never taught you. If you are still thinking then let me tell you, To support your learning, KukuFM brought a Holi sale for you. HOLI50 coupon code – Using this code you will get KukuFM’s 399 Rs yearly subscription in just 199 Rs only. But only valid till 20th March. So why are you waiting?.
Learning is the first step towards earning. The Link and coupon code, both are present in the description. The offer is limited and the choice is yours. Selling Psychology. Whenever someone buys a product then these 2 things are more important than other things. The 2 things are Gender and Association. Now understand this little carefully. There is a lot of difference between a boy’s and girl’s buying psychology. For example, if a boy goes outside with his friends for dinner.
Then there are high chances that he will go to a place where they get lots of food in less price. And the food should be eatable. That’s Enough 🥴 On the other side if a girl goes outside for dinner with her friends, In the majority of cases, they will prefer to eat where the environment and ambiance are good irrespective of the taste of food. The look and feel should be good. They should feel safe there. Interestingly, No one is wrong. The thing is that our gender highly impacts our buying behavior.
And not only this, be it a boy or a girl, there is one thing on which buying behavior of both depend. The thing is Self Esteem. Everyone wants to feel good about themselves. Everyone wants to become socially dominant. In the case of boys, they feel socially dominant by earning money and having power. In the case of girls, they feel dominant by looking beautiful. I know you would be thinking that a girl can feel good by buying a 300 Rs product, Then why do they buy Sugar Cosmetics products? That’s why I say – ‘You should audiobooks on KukuFM, 50% off is a once in a blue moon type offer.
Now see go to the girl with a beautiful box, and tell her that “Ma’am, the thing in this box is not pricy as your usual makeup but it will give you a look like your usual makeup.” I guarantee you the girl will have a smile on her face. After listening to this, 90% of girls will have a smile on their face. And sales come when there is a smile on the face. Sugar cosmetics placed their products in mid-range price product range. But packaged it so beautifully that it looked better than premium products. So when a lady looked at sugar cosmetic products from far also, she used to get attracted to it. And when you get a product with beautiful packaging which is also durable and suit your skin type,.
Then do you think that girls will not brag about it to others? And this happened with Sugar Cosmetics. When Lakme and other brands were spending money on celebrity endorsements. On the other side, Sugar made their customers their influencers and marketed their product on social media. And the girls who used Sugar Cosmetic’s products used to tell about Sugar products automatically. And so Sugar Cosmetics got free publicity. Today Sugar with their Hybrid Model i.e. Online Stores + Offline stores is beating many big brands. And b’coz of this, today their company’s evaluation is more than 3000 Crs. By identifying market gaps and understanding consumer insights anyone can build a business from scratch.
The Creator’s Code, if you had listened to this audiobook then it would be easy for you to understand business and consumers. Link is in the description of KukuFM. In just 199 Rs, where can you so much knowledge. And most importantly, what are those powerful business lessons we can learn and implement in our business? 1) People buy Feelings and not the Products. No one wants to buy a product. This is our misconception that we buy products. But the reality is that we don’t purchase products but the feeling associated with it. No girl buys Sugar Cosmetic’s Lipstick, Liner or Blush.
But they buy Confidence, Happiness and Social Dominance feeling. Associate feelings with the products which you want to sell. And then see the magic. 2) A Brand is built on Consistency Why do you buy Adidas’s or Nike’s shoes? For a logo? NO! You never buy them for a logo but ‘b’coz Adidas or Nike consistently delivers you a good quality product. So back in the mind you know that if I buy any product of Adidas or Nike, I will get good quality for sure.
Similarly, Sugar Cosmetics consistently delivered good products to their consumers in good price range. And so their brand is big hit today. If No Consistency then No Growth and if No Growth then No Business. 3) The Customers can be your Best Sales People. Hire any brilliant marketing team, spend tons of money in bringing celebrities and making good ads. But if your product is not good then It will FAIL. Great Marketing kills a bad product faster. I Repeat! Great Marketing kills a bad product faster.
On the other side if your product is good then you don’t need all these things. Your consumers will tell about your product to others. And that also for free. Do you know that in spite of having high saturation in Indian Payments market, How Ashneer Grover made 20,000 Crs company in just 3 years? You will know after watching right side video…