Recode Cosmetics vs Shark Tank India: Mockery or a Blessing in disguise? Let us dig deep into the controversy and find out how their mockery turned out to be a blessing in disguise for Recode cosmetics.
The investors in Shark Tank India especially Vineeta Singh, Namita Thapar, and Aman Gupta, landed themselves in the middle of a huge controversy by mocking the entrepreneurs of Recode Cosmetics.
Recode Cosmetics is a competition of Vineeta Singh’s Sugar Cosmetics. Namita Thapar and Aman Gupta perceived them as a threat to their dear friend’s and fellow investor Vineeta Singh’s business and flatly refused to invest in their Company.
This did not go down well with the nation, and a large number of the population was outraged on their behalf.
“The whole of India did not like it, so what can I say?” Dheeraj Bansal, co-founder of Recode Studios tells Business Today.
Although the founders Rahul Sachdeva and Dheeraj Bansal had to face ridicule and mockery, from a broader perspective it turned out to be a BLESSING IN DISGUISE for them.
The entire nation is siding with Recode cosmetics and in the end, they have come out as a winner in this fiasco.
Currently, they are ranking high in popularity amongst the youth of India. Next time when there is an option for a middle-Class Indian Woman to choose between Sugar Cosmetics and Recode Cosmetics, the bet would probably be higher on the latter option.
Let us Explore this Brand in Detail!!!
Recode Cosmetics vs Shark Tank
Recode is an international brand where that sells international quality cosmetics. They
source their products from Thailand, Germany, and China and perform quality tests in-house.
When they showed their products to the sharks, Aman ridiculed their packaging to which the founder replied with dignity that they will work on their packaging. Their sales figures did shut their mouth though.
Peyush and Anupam however refused to give friendship as a reason to dismiss an investment opportunity. They Praised the founder’s Business acumen and praised their marketing strategy.
Peyush Bhansal called them “MARKETING GENIUS” and forecasted that entrepreneurs like them will bring about a massive change in India in 5 years. He backed out because he thought that he would not be able to add any value to their business.
Anupam Mittal called them “New India’s Emerging Faces” and was happy to meet entrepreneurs who come from a small towns and set up huge businesses. He, however, had reservations over their decision-making style and backed out.
Even though they were not able to secure any investment, their marketing strategy to educate their customers by giving them tutorials in 5-star hotels and proving free lunch was applauded by all the sharks.
Recode Cosmetics Instagram
When the founder stated that they have 2,55,000 followers on Instagram.
Aman asked Vineeta what her follower count is she told her that it was 2.5 Million. Which no doubt is much more than Recode Cosmetics, but when the founders pointed out that sugar follows them on Instagram. Vineeta was temporarily shocked.
She pointed out that she has never heard about Recode Cosmetics but was completely clueless that Sugar indeed follows them on Instagram.
You can learn more about their Instagram account here.
Social Media Accounts
Recode Cosmetics NetWorth and Revenue
They have a significant rise in their revenue year-on-year in FY 2022. The three pillars that have contributed to their are Quality, affordability, and Marketing.
Their sales jumped from ₹25 lakhs in 2018 to ₹2 crores in 2019-2020. Which is 8X growth.
There was an increase of 2.5% in 2021 with ₹5 Cr in sales.
By the end of 2022, it was a staggering 300% growth at ₹15 Crore.
This year their sales have already touched ₹11.5 crores.
Their estimated projection for this year is ₹30 crores.
Their in-house brands bring about 75% of revenue and the balance 25% is from other brands.
A big part of their sales comes from Eyeliner, Primer, and Liquid Lipstick which form 50 to 60% of their total revenue. Their average basket value is ₹1,100 thousand.
They have opened over 300 offline stores and 3 Franchise stores in Faridabad, Delhi, and Raipur. Chhattisgarh and Maharashtra are next on their list. Later on, they plan to include the Northeast and south of India. They also, aim at expanding to Middle Eastern Market within 3 to 4 years.
They generate 40% of their income online and the remaining 60% from offline stores.
Recode Cosmetics Review
Recode Cosmetics provides cosmetics that are of premium quality at an affordable price. They import their products from China, Thailand, and Germany and test them at their in-house unit. The companies from whom they import their products source their ingredients from France, Taiwan, Japan, and Italy.
They also offer beauty products from 55 other brands. That includes the likes of SkinScience, ColourBar, Shopparel, Power Gummies, Riyo Herbs, and Ofra.
Their products are 100% authentic. They offer a wide range of selections from skincare, haircare, bath and body grooming, and personal care from the most trusted brands.
They have a 50% customer retention rate.
Recode Cosmetics Owner
The founders of Recode Cosmetics include Rahul Sachdeva, Dreeraj Bhansal, Preeti Trehan, Shalini Trehan, Shelly Bhansal, and Neetu Bhansal.
Rahul Sachdeva had worked in the cosmetics industry for a brand called Makeover. He studied the places from where he could get the best products made. He had a distribution of about 5 states.
Dheeraj Bhansa was in the business of bicycle parts in partnership with Rahul’s brother-in-law. One day, while Rahul was discussing his business plans, Dheeraj loved his idea and together they formed this company in just 2 hours.
Funding asked from the sharks
₹1 Cr for 1% equity.
Unfortunately, all the sharks backed out, but all of them were impressed by the way they ran their business.
Although Recode Cosmetics failed to garner get any financial support from the Sharks, the entire nation supported them against the bullying of a few of the sharks.
We would love to know your views about Recode Cosmetics vs shark tank India. Did the mockery turn out to be a blessing in disguise for them? What do you think?
Also, let us know what would have done if you were in the shoes of Sharks. Would you have sided with your friend just like Namita and Aman or given the entrepreneurs a fair chance as was the case with Anupam and Peyush.
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