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High customer acquisition costs, operational complexity key challenges for D2C ventures to turn profitable

ThehindubusinesslineThehindubusinessline · 1y ago
High customer acquisition costs, operational complexity key challenges for D2C ventures to turn profitable
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A recent report by MMA Global and Publicis Commerce India suggests that while Direct-to-Consumer (D2C) ventures in India have received significant investments, the majority are still struggling to achieve profitability. The report reveals that 80% of D2C ventures are yet to be profitable, with high customer acquisition costs, operational complexities, and unclear returns on investments cited as key challenges. To succeed, D2C businesses need to focus on consumer needs, develop insights through data analysis, and ensure a seamless customer experience. Additionally, using high-quality creative assets can help increase brand awareness and boost sales.

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