Why India’s D2C Brigade Is Facing Its Toughest Test Yet

Manufacturing facilities in India are reeling under the stress of raw material shortages, fluctuation in commodity prices, fuel deficits, and a labor exodus amid the current geopolitical crisis

Contract manufacturers are absorbing part of increased cost, and have passed on the rest to D2C brands, which in turn have been reluctant to increase the price of their goods

D2C startups are now navigating cash flow issues, frequent price negotiations with vendors, extended delivery timelines and squeezed balance sheets

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Long-standing terms between manufacturers and D2C brands are getting altered amid a whammy of forces stressing manufacturing facilities.

The conflict in West Asia, which has induced worker exodus and labour shortages in India due to rising commodity prices, is affecting retail manufacturing operations every step of the way. Dwindling fuel supplies in the grey market have led to workers returning from cities and shuttered factories in key manufacturing hubs such as Gujarat’s Morbi and Surat, Ferozabad in Uttar Pradesh and Haryana’s Bahadur among others across India.

The stress on manufacturing has had an outsized impact on brands and new retail startups primarily in categories like beauty and personal care, apparel, home decor and

At the heart of the issue is the affordability crisis created by a hike in the price of commercial LPG cylinders in India to ₹1,303. While petrol and diesel rates have remained relatively stable due to oil companies absorbing much of the difference, there are fears that such........

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