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D2C brands target 30 pc festive growth as acquisition costs rise 20 pc, baskets shrink

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D2C brands target 30 pc festive growth as acquisition costs rise 20 pc, baskets shrink

D2C brands target 30 pc festive growth as acquisition costs rise 20 pc, baskets shrink

D2C brands in India are projecting significant festive growth, looking to surpass 30% compared to last year. Customer acquisition costs and selective spending are increasing pressure on brands during this period. While some brands report growth of 18-20%, early trends reveal rising costs affecting profitability. Tier 2 and Tier 3 markets are critical for reaching new customers and expanding revenue.

India’s D2C brands are targeting more than 30 per cent festive growth even as customer acquisition costs rise 15–20 per cent and shoppers spend more selectively. Online festive sales grew 20 per cent to an estimated Rs 1.15–1.2 lakh crore last year, with D2C brands expanding 25–26 per cent. But early trends this season point to a widening gap between order growth and spending. Unicommerce data shows orders rose 31 per cent in the first week, while gross merchandise value (GMV) grew 17 per cent, indicating an approximately 10 per cent decline in average order value. Advt

With festive marketing budgets rising 15–30 per cent and quick-commerce advertising rates reportedly up 25–50 per cent, brands are under pressure to turn higher demand into profitable growth. “Brands are expecting more than 30 per cent growth this year over last year,” said Ankur Singh, partner at Kearney. However, early performance has been uneven, with some brands reporting 18–20 per cent growth. “I’d expect D2C GMV growth of 20–25 per cent, with the spread between winners and laggards very wide,” he said, adding that Diwali falling on November 8 this year makes early comparisons difficult.


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