Direct-to-Consumer Brands

How new Indian brands selling directly to consumers online, such as boAt, Mamaearth and Lenskart, grew quickly, and the challenges of profitability and customer acquisition.

In the past, building a consumer brand in India required large budgets for TV advertising and a vast distribution network. Direct-to-consumer, or D2C, brands took a different path.

What D2C means

D2C brands sell primarily through their own websites and online marketplaces, and use social media and influencer marketing to reach customers. Many later add physical stores.

Examples

boAt: audio products and wearables, built through online sales and celebrity marketing.
Mamaearth: personal care products; its parent company listed on the stock market in 2023.
Lenskart: eyewear, combining online sales with a large network of stores; it listed on the stock market in 2025.
Sugar Cosmetics, Wakefit and many others.

Advantages

Lower entry costs: no need to build national distribution before launching.
Customer data: direct relationships reveal preferences.
Fast testing of new products.
Higher margins by cutting out intermediaries.

Challenges

Customer acquisition costs: online advertising became expensive as competition grew.
Marketplace dependence: many D2C brands sell largely through Amazon or Flipkart, paying fees.
Returns and logistics costs.
Profitability: many D2C brands grew quickly with investor money but struggled to make profits.
Offline expansion: to grow beyond online shoppers, brands often need physical distribution after all.

Omnichannel shift

Successful D2C brands increasingly sell through online and offline channels, including their own stores, modern trade and even kiranas.

Big companies respond

Large consumer companies have bought or launched digital-first brands to compete.

The earphone brand

A start-up designs affordable earphones manufactured by contract makers, sells them on its website and marketplaces, and markets through cricket sponsorships and influencers. Within a few years, it becomes one of India's top-selling audio brands, without owning a factory or building a traditional distribution network.

Thinking online brands avoid marketing costs

Digital advertising and customer acquisition can be very expensive, and many D2C brands struggle to profit.

Key takeaways

D2C brands sell directly online and build brands through digital marketing.
boAt, Mamaearth and Lenskart are well-known examples.
Advantages include lower entry costs and customer data.
Rising acquisition costs and marketplace dependence challenge profitability.