There’s no one-size-fits-all answer, but some principles and patterns are worth considering:
Marketplaces offer scale. They come with built-in traffic, logistics, and trust. Great for early-stage brands looking for reach, especially in categories like electronics, beauty, and FMCG.
But they also come with trade-offs: limited customer data, compressed margins and minimal brand experience control.
D2C offers control. You own the customer relationship, brand story, data, and margin. But it’s hard (and expensive) to scale - especially when CAC is rising and consumer trust in unknown brands is still evolving.
Timing matters.
Many successful Indian brands have played both channels at different stages:
• boAt Lifestyle scaled rapidly via marketplaces, riding the high-frequency traffic and price-sensitive electronics category. Only after reaching meaningful scale did they focus on building their D2C presence.
• SUGAR Cosmetics built initial traction via their own website, establishing strong brand loyalty and then expanded via marketplaces and retail to access new audiences.
• Mamaearth took a hybrid path early, combining the CAC-efficiency of marketplaces with brand-building on their D2C platform.
• The Whole Truth Foods leaned into D2C initially to tell their story well - critical for categories like F&B where differentiation and trust matter - before expanding to marketplaces and offline.
So how should you decide?
Think about your brand’s stage, category dynamics, and goals.
• Building a premium/lifestyle brand? D2C helps shape perception, community, and retention.
• In a commoditized/high-frequency category? Marketplaces give scale and price efficiency.
• Want to raise long-term brand equity? D2C is where you own the customer.
The best performing brands are often built on both - although the magic lies in sequencing, and not just choosing blindly.
CC: Huddle Ventures
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