The D2C Math Is Breaking: West Asia War Forces Brands Into Repricing Mode

India’s beauty, personal care and packaged food brands are facing a unit economics challenge with rising fuel prices and shortages driving up packaging and distribution costs

Even before the most recent fuel price hikes, the situation was strained due to the paucity of workers at manufacturing units in the early days of the conflict

After a period of relative stability in terms of price changes for D2C products, cost pressures are beginning to show up in the margins and the bottomline for new-age retail brands

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In the last few years, the world has adapted to new waves of uncertainty. From Covid to various economic slowdowns to the recent West Asia crisis, every time global supply chains were disrupted, a new reality had to set in.

Same goes for the D2C and new-age retail brands today. As oil prices go to record highs, supply of key items has been disrupted. As it is markets have panicked, with foreign investors  pulling out of India, and there could be a real crisis on hand if livelihoods remain at stake for too long.  

As the war in West Asia continues unabated, the impact is rippling through industries. Indian retail and D2C brands are increasingly feeling the pressure on their unit economics, as cost of key ingredients have risen and fuel prices have also contributed to a hike in logistics costs.  

Even before the most recent fuel price hikes, the situation was strained due to the paucity of workers at manufacturing units in the early days of the conflict. Inc42 spoke to multiple D2C founders trying to assess the fallout of the crisis just one month into........

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