Blinkit, Zepto drive festive sales surge for India's D2C brands
What's the story
India's direct-to-consumer (D2C) brands are witnessing unprecedented growth during the festive season, thanks to a surge in online demand and quick commerce-led purchases. Order volumes have skyrocketed across categories such as personal care, wellness products, comfort accessories, and toys. Founders of several D2C companies told Moneycontrol that sales have doubled or tripled compared to last year.
Market dynamics
Quick commerce's role in D2C brands' success
Quick commerce platforms like Blinkit and Zepto have emerged as major catalysts for D2C brands, even beyond groceries. They are helping smaller festive bundles and gift packs reach consumers looking for faster delivery and last-minute convenience. Swagatika Das, co-founder and CEO of Nat Habit, said this year's festive season is "noticeably stronger" than last year, with order volumes growing 2X year-on-year (YoY).
Operational strategies
How D2C brands are managing record order volumes
To keep up with record order volumes, D2C brands have adopted decentralized fulfillment and advance planning this Diwali. Many companies pre-positioned inventory across regional hubs, extended warehouse shifts, and collaborated closely with partners to avoid bottlenecks during peak periods. Ganesh Sonawane, co-founder and CEO of comfort-products maker Frido, said their proactive planning helped them manage orders efficiently even at peak volumes.
Tech integration
Technology's role in handling peak operations
Artificial intelligence (AI) and automation have been instrumental in helping brands handle festive-scale operations this year. From demand forecasting to stockout prevention and manpower optimization, technology has given D2C companies better control over their supply chains during peak periods. Das said, "AI forecasting models ingest daily sell-through, traffic drivers, and historical holiday patterns to suggest reorder quantities and timing."
Budget boost
Increased marketing spends for visibility during festive campaigns
With traffic and competition peaking, most D2C brands have increased their marketing budgets for visibility during festive campaigns. Founders said ad spends have gone up by 20-30% from last year, with a larger share going to quick commerce platforms targeting impulse buyers and last-minute shoppers. Sonawane said they have strategically increased their marketing spends by around 22% on e-commerce and 28% on quick commerce.