'D2C brands need distribution shift to scale up to 500 crore revenue'

Mumbai: India's challenger brands, newer or emerging D2C brands, can reach Rs 100 crore in revenue within a few years, but growing to Rs 500 crore requires a shift in distribution and marketing, according to a report by WPP Media, Google and Elevation Capital, in partnership with Kantar.

Ashwin Padmanabhan, chief operating officer of WPP Media South Asia, said digital and commerce platforms help brands reach consumers already looking to buy. However, further growth requires brands to expand distribution and reach audiences beyond existing buyers. "These brands grow quickly by tapping into existing demand through digital and commerce platforms. But to scale further, they need to expand their distribution and create new demand. That is when they start competing with the big boys," Padmanabhan said.

The report, The Disruptor's Toolkit, identifies five areas shaping challenger brands' growth: brand positioning, credibility, creative strategy, channel mix and media activation. It divides the growth journey into three stages: anchoring (Rs 0-150 crore), acceleration (Rs 150-300 crore) and institutionalisation (Rs 300-500 crore).


Chirag Chadha, partner at Elevation Capital, said the time taken by challenger brands to reach ₹100 crore had shortened considerably. "Journeys to ₹100 crore that once took two decades now take two to four years, and the brands pulling ahead are those that own a sharp consumer need before earning the right to go wider." The report also examines the role of brand advertising alongside performance marketing. WPP Media learnings cited in the report show that consumers exposed to both have 1.8 times higher conversion rates than those exposed only to direct-response performance ads.

Satya Raghavan, director, marketing partners, Google India, said consumers were researching brands more deeply before purchasing, using AI-powered search experiences and creator reviews. "Indian shoppers are eager to try new brands, but curiosity always comes with a verification step," Raghavan said. He added that YouTube shopping watch time had risen 55% year on year.

The report cites a Google-Deloitte estimate that online sales for D2C brands will rise from $16 billion in 2025 to $72 billion by 2030. It argues that brands seeking to scale must move beyond capturing existing demand to reaching new audiences.