Why D2C brands are going offline

DIRECT-TO-CONSUMER (D2C) BRANDS, which were born on the internet and made a mark there, are now rapidly launching exclusive retail stores and selling through modern trade and neighbourhood stores. Mamaearth, Nykaa, Sugar Cosmetics, Bombay Shaving Company, Boat and Boult are only a few examples of digital-first brands that have migrated offline.

- VIVEAT SUSAN PINTO & AYANTI BERA

The trend, say experts, has only grown over the last few quarters. Between 2020 and 2022, during the pandemic, many D2C brands grew on the back of a spurt in online sales but the post-Covid period has been about the big leap offline, which experts describe as a "mainstreaming" of digital-first brands.

Consider this: Beauty retailer Nykaa, which made a name for itself in the online retail space, has steadily expanded its footprint of offline stores from 72 at the end of FY21 to 150 in FY23. In the current fiscal, the company is looking to add 50 more stores, Falguni Nayar, executive chairperson, MD and CEO, said. The company has added 15 stores so far in the first half of the year.

Mamaearth owner Honasa Consumer has been even more aggressive with its offline store strategy, launching as many as 85 exclusive Mamaearth outlets across cities in the last year-and-a-half to two years and taking its overall distribution reach to over 150,000 outlets for its products.

"The consumer experience that an omni-channel strategy can give cannot be replicated purely online. This is true for a number of categories from beauty and personal care to food, fashion and durables. Which explains why D2C brands are making the leap offline," says Harish HV, founder and MD at ECube Investment Advisors.