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👉 New D2C Founders: Lessons from the Frido Mobility Mislabeling Drama – Build Trust, Don’t Break It! Hey founders! 👋 The recent Frido Mobility saga on X is a wake-up call for D2C brands. Importing from China, slapping on a "Made in India" label, and charging 400% margins got called out HARD. Let’s break it down and learn how to do better. 🧠 What Happened? Frido Mobility marketed a transfer chair as "Designed in India" but its own label said "Made in China." @fintech_shark exposed the markup: ₹30k on Alibaba, sold for ₹1,10,000! 😲 Founder Ganesh Sonawane denied it, but users dug deeper—turns out, it was a labeling "error." 🤔 The backlash? Accusations of exploiting "Make in India" to mislead customers. Key Lessons for New Founders: ✅ Be Transparent: If you import, say so. Mislabeling (even by mistake) erodes trust. India’s labeling laws (e.g., FSSAI Import Regulations) require clear origin info—follow them! ✅ Own Your Supply Chain: Use good tools to track sourcing. Transparency builds loyalty—consumers value honesty (McKinsey: ethically sourced products grew 28% vs. 20% for others). ✅ Don’t Overpromise: Claiming "Made in India" when it’s not can backfire. If you design locally but manufacture abroad, say "Designed in India, Made in [Country]." ✅ Handle Criticism Gracefully: Frido’s founder got defensive, which fueled the fire. Admit mistakes, fix them, and move on—don’t double down. ✅ Price Fairly: High margins are fine, but 400% on a rebranded import? Justify your value—quality, service, or innovation—not just a shiny label. What Can You Do? - Audit your labels NOW. Ensure they match reality. - Educate your team on import laws (e.g., India requires 60% shelf life for food imports—similar rules apply to other goods). - Build a story around your brand’s purpose, not just its origin. Why should customers care? (Hint: Not because of a fake label.) If you’re importing, explore local manufacturing over time. It’s tough, but it aligns with "Make in India" and cuts risks. Transparency isn’t just ethical—it’s smart business. Don’t be the next Frido. Build a brand that customers trust, not troll. 💡 P.S. This is just an incident to learn from. Not sure who is right or wrong in this specific case. Tweet link - https://x.com/fintech_shark/status/1916422115600769216?t=1AqslYr6DPI6f3jgZxpatA&s=19