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Newsletter January, 2022

Over the last few years, several Direct-To-Consumers or D2C Brands have mushroomed in India, disrupting traditional and online retailers. New age digital companies are finding innovative ways to serve customers’ needs, which were ignored by large/traditional players. These brands initially start with a niche consumer insight to cut through the noise. As they fulfill unmet
consumer needs and generate traction, they further broaden their product portfolio. Customers in India are increasingly willing to
try out new brands and pay a premium for better quality products. In this note we take a look at the business model of D2C brands
with some examples and try to understand their impact on Incumbents and consumers.