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D2C Brands Face Muted Festive Sales Amid Rising Costs and Squeezed Margins
M
Moneycontrol•19-10-2026, 14:44
D2C Brands Face Muted Festive Sales Amid Rising Costs and Squeezed Margins
- •Direct-to-consumer brands report modest festive sales growth as inflation curbs household budgets and makes consumers cautious.
- •Rising input, packaging, logistics, and advertising costs are putting severe pressure on brand margins.
- •Many brands have scaled back marketing budgets and limited aggressive discounts to protect profitability.
- •Companies like Munchilicious and Kidara Toys are revising pricing strategies, pack sizes, and focusing on multi-packs to maintain order values.
- •Growth remains uneven across the sector, with quick commerce emerging as a strong growth channel for some beverage brands like Lahori Zeera.
Key Questions Answered
Direct-to-consumer brands are experiencing modest festive sales growth because inflation has squeezed household budgets, making shoppers more cautious about spending.
Rising costs for raw materials, packaging, logistics, and advertising are putting heavy pressure on brand margins and customer acquisition costs, forcing businesses to scale back marketing budgets, limit discounts, and reassess ineffective campaigns.
To protect margins without increasing percentage discounts, brands like Munchilicious have raised maximum retail prices while introducing special deals on multipacks to encourage customers to increase their order values.
