D2C Brands Struggle with Sales During Festive Season
Direct-to-consumer (D2C) brands are seeing weak sales this festive season. Many are reporting numbers below expectations. This trend is due to rising input and advertising costs, which have squeezed profit margins. Industry founders shared these insights with Moneycontrol on October 19, 2026.
Even with year-over-year growth, many D2C brands are changing their marketing strategies. They are cutting back on promotional spending and lowering discounts to focus on profitability. Founders mentioned that the need to maintain margins has led to a more careful approach to sales this festive period.
In contrast, fast-moving consumer goods (FMCG) companies are increasing their promotional efforts to attract consumers. These manufacturers are using strategies like buy-one-get-one offers and volume incentives on items such as cooking oil and candy. This aggressive marketing aims to boost sales volumes as retailers remain cautious about consumer demand, according to Moneycontrol.
The different strategies show the challenges D2C brands face compared to traditional FMCG companies. While D2C brands focus on managing costs, FMCG firms are actively trying to gain market share through promotions.
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The issues facing D2C brands could lead to lower sales in the retail sector. This may affect stock performance for companies in this area. On the other hand, increased promotions from FMCG companies might drive short-term sales growth, which could help their stock prices.
Investors will be watching for upcoming sales data and consumer spending trends during the festive season to understand market reactions.
Based on reporting by: moneycontrol.com