Your browser is currently blocking notification.
Please follow this instruction to subscribe:
X
Notifications are already enabled.
X

D2C With An Indian Twist: Is Pure-Play D2C A Pipe Dream?

D2C With An Indian Twist: Is Pure-Play D2C A Pipe Dream?

Boosted by the rise of digital payments, data penetration, and the big push for online commerce during the Covid-19 lockdown, more brands are going the direct-to-consumer (D2C) route, looking to control the whole stack with vertical integration — just like tech companies

D2C adoption in India also has been quite promising; the average revenue surge between 2018 and 2019 for 11 prominent D2C startups including The Man Company, Yoga Bar, NUA, The Moms Co and others was 213%

Despite the long-term vision of most brands being autonomy in operations and vertical integration, success as a pure-play D2C brand remains elusive given the peculiarities of the Indian market

For decades, taking a brand to the end consumer meant multiple rounds of negotiations with suppliers, manufacturers, wholesalers, distributors and retailers — with so many cogs in the machinery, there was bound to be a big breakdown when even one is impacted.

Never before has this been more evident than during the pandemic when everything came to standstill. Many FMCG and consumer goods brands realised that the layers in the middle from manufacturer to consumer are not enablers but hurdles.

Because the sales process was dependent on third-party players, brands also lost out on timely customer feedback. But with ecommerce growing at an unprecedented rate and delivery of essentials through online platforms becoming the norm, the layers are slowly dissipating as brands are taking charge vertically.

Boosted by digital payments, app technology, cheaper data plans and the big push for digital consumers during the Covid-19 lockdown, more brands are going the direct-to-consumer (D2C) route, looking to control the whole stack with vertical integration — just like tech companies.