FMCG in India
D2C Brands and New Challengers
New direct-to-consumer brands such as Mamaearth and boAt grew online, challenging established firms in personal care and electronics.
New brands emerge through the internet.
Model
D2C brands sell mainly online, using social media and influencers instead of large distributor networks at first.
Examples
Mamaearth (Honasa Consumer), boAt, Sugar and others became well known.
Limits
Customer acquisition costs are high, and profitability can be hard.
Response
Big firms respond by acquiring or launching similar brands.
An influencer post
A skincare brand grows quickly after popular creators promote it.
Assuming online success guarantees lasting profit
Costs can be high.
Key takeaways
- D2C brands sell online.
- Mamaearth and boAt are examples.
- Acquisition costs are high.
- Large firms respond.
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