Indian D2C Brands Shift Focus to Profitable Growth

Indian Direct-to-Consumer (D2C) brands are undergoing a strategic shift, moving their focus from topline growth to sustainable profitability. Businesses are re-evaluating their channel strategies, store formats, and customer acquisition models to improve contribution margins.

Industry leaders discussed these changes at Inc42's D2C & Retail Summit. Avnish Kumar of Neeru’s, Rajesh Chandan of Elements Wellness, and Harsh Somaiya of The Bear House shared insights on how their companies are adapting to evolving consumer preferences while scaling. They emphasized that changing consumer behavior necessitates a redefinition of success beyond mere revenue.

The Bear House, for example, has refined its channel mix, expanding from online marketplaces and its D2C platform into physical retail. Neeru’s has returned to larger, experiential store formats to cater to consumers seeking wider assortments for occasions. Elements Wellness has achieved significant scale without heavy reliance on traditional influencer marketing.

Several brands cautioned against strategies like deep discounting or rushed product launches, arguing that sustainable profitability hinges on protecting gross margins. The overarching trend indicates a move towards disciplined growth, with channel economics, customer acquisition efficiency, and margins increasingly shaping how D2C companies scale.