will d2c brands continue to grow?

Last week during a meeting, my friend mentioned that the funding scene for D2C space would dry up eventually.

I have been thinking about this the whole week.

While there is a lot of accumulation happening in the market, I believe the D2C space will continue to grow because:

D2C is not a service or an industry, it is a channel/business model

Brands by definition are unique in nature and each upcoming brand has something new to offer. Upcoming brands are only using D2C as their channel/business model and the new-age Indian brands are building a solid foundation for Gen-Z.

In a lot of ways, I see this as a transition of brands from the unorganized to the organized sector.

The same trend of the shift from the unorganized to the organized sector can be seen in the offline local spaces as well, SMEs are realising the importance of branding and have started investing in brand-building activities.

I see a lot of local food and clothing brands, trying to work on:

• Their Social Media Presence
• Creating their Unique Brand Persona
• Collecting Feedback from Customers
• Investing in Branded Packaging

D2C brands or brands, in general, will continue to thrive and survive because of their continuous focus on all stakeholders in the eco-system.

Eventually, I believe the invisible hand of markets will also lead to price correction and customers will be able to choose the best quality products at the best prices.

At this point, one hiccup in an Indianbrand’ss journey seems to be the discoverability challenge. What came as an anomaly in form of performance marketing and the digital boom is subsiding due to the larger battles between Apple, Amazon and Meta.

This will subside though, smarter brands will find new ways of reaching out to their audience.

What are your thoughts?

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