Minor Project Report

On
A STUDY ON A CONSUMER BEHAVIOUR TOWARDS
SUGAR COSMETICS PRODUCTS
Submitted in partial fulfillment of the requirements
for the award of the degree of

Bachelor of Business Administration (BBA)

to
Guru Gobind Singh Indraprastha University, Delhi

Guide: Dr. Hakimuddin Khan Submitted by: Aakansha Goyal

Designation: Associate Professor Roll No.: 03914201723

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL

Batch (2023-2026)
 RESEARCHER’S DECLARATION

I AAKANSHA GOYAL is the student of BBA Second year course affiliated to GGSIPU, New Delhi.
She has prepared a project report titled “A STUDY ON A CONSUMER BEHAVIOUR TOWARDS
SUGAR COSMETICS PRODUCTS” declare that the PROJECT REPORT entitled is record of
independent research work carried out by me under the supervision and guidance of Dr.
Hakimuddin Khan

BBA 2nd year (4th sem) AAKANSHA GOYAL

Enrollment no.:03914201723
 Jagannath International Management School
Vasant Kunj, New Delhi-110070
(Affiliated to Guru Gobind Singh Indraprastha University, New Delhi)
Recognized u/s 2(f) by UGC & Accredited with ‘A+’ Grade by NAAC
NIRF Rank Band 201-300 under College Category
Participant of UNGC New York and ISO 9001:2015 Quality Certified

Certificate

This is to certify that Minor Project –II entitled “A STUDY ON A CONSUMER

BEHAVIOUR TOWARDS SUGAR COSMETICS PRODUCTS” is a quality work done by “
AAKANSHA GOYAL (03914201723)“ completed under my supervision and guidance in partial
fulfillment of the requirement for the award of degree of Bachelor of Business Administration
(BBA) as a part of the curriculum bearing Course Code BBA-218 in Guru Gobind Singh
Indraprastha University, New Delhi-110078.

Dr. Hakimuddin khan

(Project Guide)
Countersigned by: Dr. Nidhi Gupta

Head- Department of Management

Place: New Delhi
Date:
 ACKNOWLEDGMENT
With profound sense of gratitude and regard, I convey my sincere thanks to my guide and mentor,
for their valuable guidance and the confidence they instilled in that helped me in the successful
completion of the project report.

I wish to express my sincere gratitude to my project guide Dr. Hakimuddin khan,

“JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL” under whose guidance the
study was undertaken. Without her guidance at each stage of the project study, the task could not
have been accomplished. This acknowledgment would be incomplete without thanking the college
faculty who helped me in all possible ways their whole hearted cooperation. Last but not the least
I am ever grateful to my friends for their help and support in completing my project.
 CONTENTS

S No Topic Page No

1 Certificate

2 Acknowledgements -

3 Executive Summary -

4 Chapter-1: Introduction -

5 Chapter-2: Review of Literature -

6 Chapter-3: Research Methodology -

7 Chapter-4: Data analysis & Interpretation

8 Chapter-5: Findings and Suggestions -

9 Chapter-6: Summary/Conclusion

9 References -

10 Appendices -

 Tables and Graph (If Any)

 Analytical Master Charts (If Any)

 Financial Statements (If Any)

 EXECUTIVE SUMMARY
Sugar Cosmetics, founded in 2012 by Vineeta Singh and Kaushik Mukherjee, is a rapidly growing
Indian beauty brand known for its high-quality, cruelty-free, and vegan cosmetics. With
headquarters in Mumbai, the company has successfully positioned itself in the direct-to-consumer
(D2C) space, leveraging both e-commerce platforms and offline retail presence.

The brand started with two key products—a black matte eyeliner and a black kohl pencil—but has
since expanded its portfolio to include lipsticks, foundations, eye makeup, and skincare products.
Its unique packaging, affordability, and strong digital marketing campaigns have contributed to its
widespread popularity, especially among young consumers in metropolitan and Tier 1 and 2 cities.

Sugar Cosmetics follows an Omni channel business model, selling through online marketplaces
such as Amazon and Nykaa, as well as its own website and retail outlets. The company has raised
over $87.5 million in funding, with investors including Ranveer Singh and A91 Partners. Its
revenue reached $26.85 million in FY22, and the brand continues to grow despite market
challenges.

A consumer behavior study on Sugar Cosmetics found that advertising plays a significant role in
influencing purchase decisions, with television (42%) and social media (28%) being major drivers.
The study also highlighted that quality, promotions, and brand campaigns significantly impact
buying decisions.

Despite its success, Sugar faces challenges such as competition from established global and local
brands, consumer concerns about ingredients, and the need for continuous innovation. However,
with strong branding, influencer collaborations, and expansion strategies, Sugar Cosmetics is
poised for further growth in India's booming beauty industry.
INTRODUCTION
 INTRODUCTION
Sugar Cosmetics is one of the premium beauty brand in India. Sugar Cosmetics founded by Vineeta
Singh and Kaushik Mukherjee in 2012, headquarters is in Mumbai, Maharashtra, India. 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. But how did they
become so successful? Here, we’ll explore Sugar cosmetics‟ success story. From their founding
to their growth strategy, we’ll see how this company has quickly become a force to be reckoned
with.

Sugar cosmetics is a luxury cosmetics brand that was founded in 2012 by Vineeta Singh and
Kaushik Mukherjee. The makeup brand is known for its high-quality, natural ingredients and its
unique packaging.

Sugar cosmetics has become a cult favorite among beauty enthusiasts and has been featured in
magazines. The company clocked Rs 105 crore in net revenue for the year 2019-2020. Sugar
Cosmetic’s revenue is INR 500 crores.

The Mumbai-based startup has raised an investment of INR 35.5 crores in the past few years. Their
first product was a range of brightly colored lipsticks, which quickly became a hit among
Bollywood celebrities and everyday women alike.

Sugar Cosmetics was created with the goal of providing high-quality, affordable makeup products
to women everywhere. The company offers a wide range of products, from lipstick and foundation
to eyeshadow and mascara.

All of their products are cruelty-free and made with natural ingredients. Within a year, Sugar
Cosmetics had grown from a small operation to a full-fledged business.

Kaushik Mukherjee and Vineeta Singh were now selling their products in stores all over the
country, and they even had celebrity fans! Sugar Cosmetics has since expanded its range to include
eyeshadows, blushes, bronzers, and more.

The brand is now available online and in stores across India. Nowadays, Sugar Cosmetics is one
of the hottest makeup brands around. But it all started with entrepreneur duo with a dream!
 Sugar Cosmetics - Company Highlights
The Indian beauty e-commerce market, which is still in its early stages, might witness a spate of
acquisitions over the next 3 to 4 years as smaller, direct-to-consumer (D2C) firms are rising,
following pattern set in the US.

Startup Name SUGAR Cosmetics

Parent Company Vellvette Lifestyle, Vellvette

Headquarters Mumbai, Maharashtra, India

Industry Beauty, Ecommerce, Brand Marketing,

Cosmetics
Founders Kaushik Mukherjee and Vineeta Singh

Founded 2012

Current CEO Vineeta Singh

Total Funding $80.8 Mn over 7 rounds

Revenue $26.85 Mn (FY22)

Website www.sugarcosmetics.com
COMPANY PROFILE
 COMPANY PROFILE
Company Profile is an initiative by StartupTalk to publish verified information on different startups
and organizations. The content in this post has been approved by Sugar Cosmetics.

Until the emergence of e-commerce and Direct-to-Consumer (D2C) selling, the Indian beauty sector had
been dominated by cosmetics majors for decades. In the beauty industry, it's difficult to overlook the
influence of direct-to-consumer companies like Nykaa, Mamaearth, WOW Skin, Plum, and Sugar
Cosmetics, which are quickly becoming customers' go-to alternatives in metros and Tier 1 and 2 cities.

Established in 2015, Sugar Cosmetics came up with just two products, namely, a black matte eyeliner and
a black kohl pencil. Since then, the company has grown to 450 Warehouses.
 Sugar Cosmetics - Founders and Team
Sugar Cosmetics was founded by Kaushik Mukherjee and Vineeta Singh in 2012.

Kaushik Mukherjee

Kaushik Mukherjee, the Co-Founder, and CEO of SUGAR Cosmetics is a BITS Pilani and IIM
Ahmedabad alumnus, and a TEDx speaker. He is also a marathon runner and an Ironman
triathlete.

Vineeta Singh

Vineeta Singh is the Co-Founder and CEO of SUGAR Cosmetics, India's fastest-growing
cosmetic business. She is a TEDx Speaker and an IIT Madras and IIM Ahmedabad graduate. She
is a triathlon as well as an ultramarathon runner. Vineeta is a popular face on the Indian business
reality show Shark Tank. Vineeta has also funded numerous startups.

Sugar Cosmetics, a direct-to-consumer company, appointed Suchit Sikaria as its new Chief
Business Officer on July 5, 2021. Sikaria, an IIM-Ahmedabad alumnus, has over 14 years of
sales, marketing, and business operations leadership experience with Performics India and Nokia
India. He was a VP and later a Managing Partner with Performics, and has earlier served as the
Area Sales Manager at Nokia. Sikaria also has four years of startup expertise from his own
entrepreneurial business, Bhukkadpanti, which was built to serve as a food startup.

Loan Details.

SUGAR Cosmetics has raised a total of $87.5M in funding over 6 rounds. Their latest funding
was raised on Sep 3, 2022 from a Angel round. SUGAR Cosmetics is funded by 9 investors.
Ranveer Singh and A91 Partners are the most recent investors.
 Products From Sugar Cosmetics

1) All Set to Go Banana Powder.

This loose (finishing) powder is ideal for people who don‟t want that heavy makeup look and
want something that helps blot out the oil. Basically, if you‟re using ultra-hydrating, or any
product that leaves your skin oily (like certain types of sunscreen), dusting a bit of this will help
achieve a more matte look. It‟s also yellow toned, which also happens to be the undertone for
most Indian complexions.

Why we want it: For days we use only sunscreen in the heat

Price: INR 599

Rating: 4.5/5
2) SUGAR Goddess Of Flawless SPF30+ BB Cream.
The power of a BB Cream is only decided by how many functions it does (priming, moisturising,
sun protection, coverage, and the like), and we‟ve had our eye on the Goddess Of Flawless BB
cream for a while now because it offers SPF 30, comes in 5 shades, glides smoothly and stays all
day. That being said, users have mentioned that while it is completely matte, it does tend to be
drying for those with normal to dry skin.

Why we want it: For its lightweight formula, and matte effect

Price: INR 699

Rating: 4.1/5
3) SUGAR Mettle Liquid Lipstick - 02 Vega (Deep Fuchsia)
A liquid lipstick available in 5 shades (all that work for most Indian skin tones), this one wins for
cute packaging and great pigmentation. If you‟re looking for bolder hues, the Mettle Liquid
Lipstick range has you covered. That being said, it will need to be reapplied once you eat, and
isn‟t transfer proof in general. We‟re eyeing the Cherry Red and the Vega at the moment

Why we want it: For the colourpayoff

Price: INR 1,100

Rating: 4.5/5
4) SUGAR Grand Finale Matte Setting Mist
Tie your makeup together with a setting mist. Users say that this one keeps makeup on (with no
touchups) from 9-5, and can be used as a primer too. We want it because it sets with a matte
finish, and in summers, there‟s a fine line between dewey and oily that we don‟t want to cross.
The only downside of this product is how little of it you get. Also, if you want a finishing spray
that also has SPF, Sugar Cosmetics has an option for that too!

Why we want it: For the matte finish, and long-lasting setting

Price: INR 699

Rating: 4.3/5
 Sugar Cosmetics - Business Model and Revenue Model
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 e-Commerce marketplaces like
Amazon, Nykaa, etc. The major revenue streams of Sugar Cosmetics include the sale of its
products in India and other export sales.

Sugar Cosmetics - Funding and Investments

Sugar Cosmetics has raised $80.8 million in over 7 funding rounds that the company has seen
to date. It was the Series C round of funding that Sugar had last witnessed on October 21, 2020,
which infused $21 million into the company, after which it closed a
$50 million worth of funding in its Series D funding round that came from Asia Fund of L
Catterton and some other existing investors including Elevation Capital, India Quotient, and
A91 Partners.

THREAT OF SUBSTITUTE PRODUCTS

The threat of substitutes arises when there are similar products developed by competitors which

satisfy the market needs. When consumers have access to substitute products which can satisfy

their market needs, then manufacturers and suppliers lose their bargaining power.

Chemical ridden products, vague ingredient labels, and hidden chemicals are three of the major

problems with the beauty industry. All these problems stem from one major source: lack of

regulation. Lack of regulation enables companies to put unsafe chemicals in products and

vaguely label chemicals as “fragrances”.

 LITERATURE REVIEW
The cosmetics industry in India has seen a rapid transformation with the rise of direct-to-
consumer (D2C) brands like Sugar Cosmetics. The increasing disposable income, evolving
beauty standards, and growing awareness of skincare and makeup have significantly influenced
consumer preferences. Various studies and consumer reviews highlight key aspects of Sugar
Cosmetics’ market position, quality, and appeal.

1. Consumer Perception and Brand Positioning

Several studies emphasize that Sugar Cosmetics has successfully positioned itself as a high-
quality, affordable, and cruelty-free makeup brand. The brand caters specifically to Indian skin
tones and climatic conditions, making it a preferred choice among young consumers. Reviews
from beauty enthusiasts indicate that Sugar Cosmetics competes with premium international
brands like ColourPop due to its product quality and affordability.

2. Product Satisfaction and Preferences

According to consumer feedback, Sugar’s lipsticks, eyeliners, and foundations are some of its
most popular products. Customers appreciate the "Matte as Hell" Crayon Lipsticks and
"Smudge Me Not" Liquid Lipsticks for their pigmentation and long-lasting wear. However,
while Sugar’s BB creams and foundations provide good coverage, some consumers with dry skin
find them slightly drying.

3. Impact of Advertising and Promotions

Marketing and advertising play a crucial role in Sugar Cosmetics’ success. Studies show that
42% of consumers are influenced by television advertisements, while 28% rely on social
media promotions to make purchasing decisions. The company leverages influencer marketing,
celebrity endorsements, and digital campaigns to engage its target audience effectively.

4. Market Competition and Growth Challenges

The Indian beauty market is dominated by both global giants (such as Maybelline, MAC, and
L’Oréal) and emerging domestic brands like Nykaa, Mamaearth, and Plum. Sugar’s D2C model
and strong online presence have helped it stand out. However, challenges such as competition
from well-established brands, ingredient transparency concerns, and increasing marketing costs
remain significant factors influencing its long-term growth.