Could you talk about SUGAR Cosmetics’ retail expansion journey and how it has helped meet the brand objectives? 

As the fastest-growing color cosmetics brand in India, SUGAR Cosmetics has scaled aggressively to the top 3 largest players in this category and is a cult favourite for the young and aspirational. Our rapidly expanding offline presence gives us a true omnichannel presence and edge over other digital-first brands by making our products accessible to beauty enthusiasts across the digital divide. 

Investing in physical points of sale allows us to authentically represent our brand identity and showcase our product offerings beyond mobile screens. Today, our offline presence encompasses a variety of outlets, including our exclusive brand outlets (EBOs), shop-in-shop (SIS) counters, and multi-brand outlets (MBOs) in General Trade arrangement, totaling over 45,000 retail touchpoints across 550+ cities. This extensive network allows us to establish a strong and diverse presence, reaching customers across various demographics. 

How do you think in-store factors - including the store design and experience - have contributed to the overall business/brand growth? 

Though attributing business performance solely to store space and design is complex, our captivating stores and customer-friendly experience yielded more than a 60% surge in sales. Our store designs and in-store elements have been instrumental in crafting a distinctive brand identity. They provide an inviting, vibrant, modern, and innovative aesthetic that customers readily recognize. This recognition has been instrumental in building a brand recall among our customer base. 

How do you make sure front-end store elements like store fixtures/ fit-outs, among other things, enhance the overall store experience? Is there a specific approach in place? 

Front-end store elements, including store fixtures and fit-outs, are not just components of our retail strategy; they are the bedrock of our brand vision. We continually invest in upholding the quality and the standard of excellence that defines SUGAR Cosmetics. 

The strategic placement of fit-outs such as the store lighting, the logo signage, check-out counters, and overall visual merchandising ensures that customers can effortlessly navigate to engage with our display of products, requiring minimal intervention from our customer service representatives. 

We consistently update the design in response to customer feedback and market trends. Annually, our visual merchandising undergoes transformation, and store fit-outs are upgraded. This ensures that our customers experience a cohesive SUGAR Cosmetics brand image regardless of the store they visit. We strive to strike a balance between maintaining a fresh and appealing store environment and managing costs effectively. 

How do you evaluate and collaborate with your store solution providers? Any new expectations given the way customer journey and expectations are evolving? 

Our partnerships with suppliers and distributors are paramount to the success of our retail plans. The fixtures and store solutions we employ serve as an extension of our brand, and for us, quality and aesthetics are non-negotiable. Currently, we have established relationships with trusted partners who not only provide favorable First-Time Right (FTR) and On-Time Delivery (OTD) but also offer a one-year warranty service. 

As we strategically position our stores and evolve the way customers experience our products in-store, our expectations from suppliers shall evolve as well. We anticipate a continued focus on not only meeting but exceeding customer expectations through innovative and high-quality store solutions. 

Do you see spending on store design and in-store elements going up in the immediate future? 

While we acknowledge that costs will inherently rise with the introduction of more elements in-store and the adoption of new designs, we view this investment as integral to our commitment to excellence in both customer experience and brand representation. While we may not specify a precise percentage increase, our approach will be guided by a strategic allocation of resources to uphold our brand standards and cater to the evolving needs of our customers. With SUGAR, it will always be brand and customer first. 

As a retailer, what are your top challenges today when it comes to store expansion/rollout? 

Some of the key challenges, not only for us I believe, but for many brick-and-mortar Retailers, could be rental negotiations of space, space availability in the high street or malls in key and premium markets coupled with the correct mix of footfalls i.e., tapping the correct target of buyers/demographics. The cosmetics industry is characterized by intense competition. Understanding and responding to the strategies and actions of our competitors 

in the same locations is an ongoing challenge. While these challenges are significant, they also present opportunities for growth and innovation. Our goal remains to expand our retail presence, ensuring easy access for our customers to SUGAR Cosmetics' high-quality products and the unique brand experience we offer. 

Any new retail plans in the pipeline for this year? 

In charting our course for 2024, we envision a robust and strategic retail expansion increase of up to 40% pan India, driven by thorough market research and customer insights.