D2C boom faces fatigue

SOME BRANDS, such as alcobev brand O'Be Cocktails and ayurvedic player The Ayurveda Co., have shut shop entirely.

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The D2C model was originally built on low entry barriers, inexpensive digital advertising, and the ability to engage directly with customers. While many brands thrived during the pandemic-driven boom, experts say that a compelling brand story alone is no longer enough to scale operations sustainably.

"Once the pandemic wave passed, the surge in online demand started to level off. People went back to old habits, and the cost of acquiring customers online shot up," Singh said. She added that investors are now prioritizing profitability over growth.