𝗗𝗲𝗲𝗽𝗶𝗸𝗮 𝗣𝗮𝗱𝘂𝗸𝗼𝗻𝗲 𝗶𝘀 𝗹𝗼𝘀𝗶𝗻𝗴 𝗺𝗼𝗻𝗲𝘆, 𝗛𝗿𝗶𝘁𝗵𝗶𝗸 𝗮𝗻𝗱 𝗞𝗮𝘁𝗿𝗶𝗻𝗮 𝗮𝗿𝗲 𝗶𝗻 𝗽𝗿𝗼𝗳𝗶𝘁𝘀. 🤔 A recent report by Storyboard 18 has analyzed various celebrity-led brands and revealed their financial performances. 𝗛𝗿𝗶𝘁𝗵𝗶𝗸 𝗥𝗼𝘀𝗵𝗮𝗻’𝘀 𝗛𝗥𝗫 that has now crossed the ₹1000-crore revenue mark is a major success. Launched in 2013 as a fitness and lifestyle brand, HRX has witnessed a remarkable growth trajectory, becoming one of India’s leading celebrity-endorsed brands. Its partnership with Myntra has further boosted its market presence. Katrina Kaif’s beauty brand, 𝗞𝗮𝘆 𝗕𝗲𝗮𝘂𝘁𝘆, is also a profitable venture. Launched in collab with Nykaa, Kay Beauty has over 15 lakh customers. The brand is expected to grow at a rate of 62%. 𝗔𝗹𝗶𝗮 𝗕𝗵𝗮𝘁𝘁’𝘀 𝗘𝗱-𝗮-𝗠𝗮𝗺𝗺𝗮, after being acquired by Reliance Retail, saw its revenue increase four-fold, solidifying its position in the children’s apparel segment. 𝗗𝗲𝗲𝗽𝗶𝗸𝗮 𝗣𝗮𝗱𝘂𝗸𝗼𝗻𝗲’𝘀 𝟴𝟮°𝗘 𝗙𝗮𝗰𝗲𝘀 𝗟𝗼𝘀𝘀𝗲𝘀 Deepika Padukone’s skincare brand, 82°E has shown a loss of Rs 25.1 crore at the EBITDA level in the first nine months of FY24. 82°E has struggled to gain a foothold in the competitive skincare market. The report suggests that the brand’s high pricing and limited market penetration could be contributing factors to its underperformance. 𝗩𝗶𝗿𝗮𝘁 𝗞𝗼𝗵𝗹𝗶’𝘀 𝗪𝗥𝗢𝗚𝗡 has seen a revenue decline of 29% 𝗦𝗵𝗮𝗵𝗶𝗱 𝗞𝗮𝗽𝗼𝗼𝗿’𝘀 𝗦𝗸𝘂𝗹𝘁 and 𝗔𝗻𝘂𝘀𝗵𝗸𝗮 𝗦𝗵𝗮𝗿𝗺𝗮’𝘀 𝗡𝘂𝘀𝗵 are experiencing diminishing returns. Even 𝗦𝗼𝗻𝗮𝗺 𝗞𝗮𝗽𝗼𝗼𝗿’𝘀 𝗥𝗵𝗲𝘀𝗼𝗻 is grappling with market presence and return on investment issues. - 𝗪𝗵𝘆 𝗱𝗶𝗿𝗲𝗰𝘁-𝘁𝗼-𝗰𝗼𝗻𝘀𝘂𝗺𝗲𝗿 (𝗗𝟮𝗖) 𝗯𝗿𝗮𝗻𝗱𝘀 𝗼𝗳𝘁𝗲𝗻 𝘀𝘁𝗿𝘂𝗴𝗴𝗹𝗲 𝘄𝗶𝘁𝗵 𝗽𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆: 1. High customer acquisition costs: - Digital advertising is expensive and competitive - D2C brands often rely heavily on paid social media and search ads - Customer acquisition cost (CAC) can exceed customer lifetime value (LTV) 2. Low repeat purchase rates: - Many D2C products are infrequent purchases (e.g. mattresses, luggage) - Challenges in expanding product lines to drive more frequent purchases 3. Logistics and fulfillment costs: - Shipping individual items is expensive compared to bulk retail distribution - Returns can be costly to process 4. Pricing pressure: - Difficulty in maintaining premium pricing as competition increases - Race to the bottom on pricing to acquire customers 5. Scaling challenges: - Many D2C brands struggle to grow beyond their initial niche - Difficulty in expanding to new customer segments or geographies 6. High overhead costs: - Significant spending on technology, marketing teams, and customer service - Costs of running both ecommerce and any physical retail operations -- #D2C #CelebrityBrands #Deepikapadukone #katrinakaif #HrithikRoshan #Myntra #Nykaa
Hemant Singh
2mo
I like that they are not overally dependent on one source of income. Doing side businesses etc looks awesome. I loved HRX because of organic cotton tag on its clothes. Bought a few
Vivek Kapoor
2mo
Harshwarrdhan Singh @arshiavijan
gunjan rohatgi
2mo
Great advice
Building my D2C business. Author (20+ Fiction Novels and counting)
2mo📌 Why D2C Brands Struggle with Profitability High customer acquisition costs: Expensive digital advertising and competitive markets lead to high CAC. Low repeat purchase rates: Many D2C products are infrequent purchases, limiting customer lifetime value. Logistics and fulfillment costs: Individual shipping and returns processing are expensive. Pricing pressure: Difficulty maintaining premium pricing as competition increases. Scaling challenges: Struggles in growing beyond initial niche markets. High overhead costs: Significant spending on technology, marketing, and customer service. These factors often result in D2C brands spending more to acquire and retain customers than they earn in revenue, leading to ongoing losses despite growing sales.