Abisheik Aravindan’s Post

Pricing decides the fate of your D2C brand Today, thanks to shopify, shiprocket, meta and contract manufacturers starting a new D2C brand is as easy as going for a morning walk the only thing you need is right amount of motivation. Especially from the place I hail Coimbatore, a textile D2C brand owner is a every 10th person you meet. In such a market, how does a new brand become successful? In my experience working with a number of D2C brands in this region and after going through the state of fashion 2026 report by McKinsey & Company, it is quite clear to me that it is your pricing strategy. If you ask me why 1) A brand with lower price point than his competitors generally enjoys a higher return on ad spend (ROAS) which in turn reduces your customer acquisition cost (CAC) significantly. 2) With higher ROAS, you are less likely to hold more inventory and thus less dead stock. Bonus - Less GST ITC accumulation due to less CAC. Better working capital turnover. Higher revenue. More absolute profits. 3) Mid-market customers show more loyalty than luxury segment customers (as most of them love to try new brands than sticking with one). Thus, brands with lower prices may enjoy a higher customer retention. 4) Now, with Autonomous AI shopping Agents in the picture, customers can to monitor products real time to choose between multiple brands and wait till some discounts are given by brands they like without any effort or even spending much time. 5) With tariff wars between countries and the prevailing global instability, the raw material prices may fluctuate and thus brands need to react immediately in their pricing (especially brands which follow standard costing) and procurement. All the above factors require a brand to adopt a robust and dynamic pricing strategy which consistently monitors and reacts to both internal and external factors. A good pricing strategy is the one which drives revenue with good gross margins at CM2 level. If you are a D2C brand owner and figuring out your pricing strategy, feel free to get in touch. Follow for more. Image - Proof that I hail from Coimbatore. #d2c #brand #pricing

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