EconReads
Donate

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.
1 min read

No recording for this one yet - EconReader can read it aloud for you.

Welcome to EconReads

This site is made for visually impaired learners, so our read-aloud reader is already switched on to help you explore hands-free.

You're in control - turn it off any time using the Reader button at the top of the page.

EconReader Ready