🦠 The Germ of an Idea

Plus: Earn it to Own it.

Author

Chai Sip
April 23, 2023

ISSUE #056

☕ Good Morning! Sippers,

Vineeta Singh, co-founder, and CEO of SUGAR Cosmetics share her inspiring journey with insights into how she created her successful entrepreneurial concept.

In today’s Issue 📬 :

  • The Germ of an Idea.

  • Earn it to Own it.

SIP WORTHY

The Germ of an Idea: Vineeta Singh’s Entrepreneurial Journey with SUGAR Cosmetics

Singh is an IIT-Madras and IIM-Ahmedabad alumna who turned down a lucrative job offer to pursue her dream of becoming an entrepreneur.

💄 SUGAR Cosmetics, the brand she founded with her husband in 2015, offers over 550 products, catering to lips, skin, eyes, and more.

🏃‍♀️ Singh’s experience as a marathon runner has influenced her entrepreneurial journey in many ways. She has applied running principles like not giving up, varying the pace, sticking to convictions, and not losing sight of the end goal of her business and career.

Singh and her team have faced bankruptcy on multiple occasions, but the spirit of running taught her to take the next step, no matter what.

💄 A Unique Vantage Point: Before launching SUGAR Cosmetics, Singh and her husband had founded Fab Bag, a cosmetic subscription service that ran into rough weather. They formed a parent company called Vellvette Lifestyle Pvt Ltd, which served a young demographic band (18-30 years).

Their close proximity to the target group, a closed-loop feedback system, and the ability to send 200 products each year to 100,000 women gave them a unique vantage point.

💡 The Birth of SUGAR Cosmetics: The Indian beauty industry had its own constraints, with many products not suited for the Indian complexion. The feedback from young Indian women during pilot runs was very clear: they were looking at lipstick shades and other cosmetic products that would go well with their skin tones.

They were looking at alternatives to international brands that would withstand the pollution and heat on the streets. Singh sensed a mindset shift and created SUGAR Cosmetics in 2015.

💰 The Challenges of Funding: Over 100 potential investors thought the idea would not work, with some stating that the per capita consumption of cosmetics in India was 1/8th of any Western market or Southeast Asia.

❓Questions were also raised about costs, with some stating that building a cosmetic brand from scratch would cost anything upwards of Rs 50 crore as the brand building was an expensive exercise. At that point, they had only Rs 30 lakh in the company account.

🚀 Rising to Success: The initial years were tough for SUGAR Cosmetics, but Singh and her husband never doubted the scale of the opportunity before them. Despite close calls to bankruptcy, they continued to innovate and build the brand.

👩‍👧‍👧 Catering to Young Indian Women: SUGAR Cosmetics’ predominant customer profile consists of young Indian women, not just in metros but also in tier-II and tier-III cities and towns, which account for 60-65% of its revenue. The company has placed its products in over 40,000 retail outlets, and they aim to expand that to 1 lakh outlets over the next 12 months.

🏬 They also plan to open 250 exclusive stores by the end of FY24. Although the revenue split between online and offline channels is currently 50:50, soon 60% of the revenue is expected to come from offline stores.

💡 Vineeta Singh’s journey as an entrepreneur is an inspiration to many. Her determination and resilience in the face of adversity have helped her to build a successful business from scratch.

Here are some key lessons from her journey:

  1. 😎 Believe in yourself: Vineeta Singh’s success is a testament to the power of self-belief. Despite facing numerous rejections from investors, she never wavered in her conviction that her idea would work. This unwavering faith in herself and her vision has helped her to overcome numerous obstacles and build a successful business.

  2. 🫂Focus on your customers: SUGAR Cosmetics’ success is largely due to its focus on the Indian consumer. By catering to the specific needs of Indian women, the company has been able to carve out a niche for itself in a market dominated by multinational brands. This focus on the customer has helped the company to build a loyal customer base and establish itself as a leader in the Indian cosmetics industry.

  3. 🗝️ Persistence is key: Vineeta Singh’s journey as an entrepreneur has been characterized by persistence in the face of adversity. Despite facing numerous setbacks, she never gave up on her dream. Her persistence and determination helped her to build a successful business and overcome numerous obstacles along the way.

IMPROVEMENT SIP

Earn it to Own it: The Simple Truth That Can Enrich Your Life

Harry Browne, an American writer, and politician wrote a letter to his daughter on Christmas in which he expressed his desire to give her a gift that would stay with her for a lifetime. He believed that if his daughter learned one simple truth, it could enrich her life in hundreds of ways and prevent her from facing problems that have hurt people who have never learned it.

The truth that Browne wanted to impart to his daughter was simple yet profound: no one owes you anything.

This means that you cannot expect anything from others without first earning it. You owe it to yourself to be the best person possible, and if you do, others will want to be with you and provide you with what you want in exchange for what you’re giving to them.

Browne’s message is not about selfishness, but about personal responsibility. It’s about taking ownership of your life and your relationships with others. You cannot control other people’s actions, but you can control your own. You can choose to be the kind of person who earns the love and respect of others, or you can choose to be entitled and expect others to give you what you want without earning it.

Browne’s advice is backed up by research that shows that people who are proactive in their relationships are more likely to have positive outcomes. For example, a study published in the Journal of Social and Personal Relationships found that people who put effort into maintaining their friendships were more likely to have satisfying friendships and feel less lonely.

The importance of earning the love and respect of others is illustrated by the story of George, a man who had trouble making and keeping friends. George had a sense of entitlement and expected others to give him what he wanted without earning it. He would often complain about his lack of friends and blame others for not being good enough.

One day, George decided to take ownership of his life and his relationships. He started to work on being a better friend by listening more, being supportive, and showing up when his friends needed him. As a result, he started to make new friends and his existing friendships became stronger.

Browne’s advice is not just applicable to personal relationships, but also to professional ones. People who work hard, show initiative, and take responsibility for their work are more likely to be successful than those who expect things to be handed to them.

As Browne said, “If you learn it now, it may enrich your life in hundreds of ways.”

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