Youth-focused cosmetics brands are shining, but loyalty remains a challenge
Why Kolkata is a big pull for the beauty market Listed player Honasa Consumer, which owns skincare brands Mamaearth and Aqualogica, launched Staze, an affordable, youth-focused colour cosmetics range earlier this year. Last year, A91 Partners-backed SUGAR launched SUGAR Play, targeting teens and pre-teens. Kaushik Mukherjee, co-founder and chief operating officer at SUGAR, told Mint, “With increased exposure to global fashion and beauty trends through social media and the internet, teenagers in India are becoming more conscious of their appearance and grooming.
This led to a higher demand for cosmetics and skincare products tailored to their age group." Venture capital (VC) investors are also looking to cash in on this growing opportunity. Delhi-based clean-beauty brand Blur India is in talks with several consumer-centric VC firms to raise pre-seed capital, according to a person in the know. Typsy Beauty, another youth-focused brand, has also been talking with investors, this person added.
“The new colour cosmetics startups being built are aimed at Gen Z-ers, who are more demanding. Founders in this domain will need to be as nimble as their consumers," said Archana Jahagirdar, managing partner at early-stage investment firm Rukam Capital. India’s cosmetics and grooming industry is projected to grow to $35 billion by 2035, with the consumption of cosmetics by teenagers increasing rapidly, according to a joint study by Assocham and MRSS India.
SUGAR Play saw its revenue grow more than 218% in the April-June period compared to the previous quarter, Mukherjee said, without sharing exact figures. It’s expected to be SUGAR’s fastest-growing range in the next 18-24 months, he added. “With an overall cumulative quarterly growth
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