India, May 5 -- D2C's Manufacturing Dilemma

Indian D2C brands are facing a new brutal reality. Manufacturers are rewriting contracts and moving to the 'cash and carry' model as the fallout from the conflict in West Asia hits production. So, why are manufacturers and D2C brands suddenly at odds?

Supply Under Strain: From Morbi to Bahadurgarh, production has slowed at manufacturing hubs. Worker protests, wage hikes and migration are forcing manufacturers to raise pay or lose labour, which is adding another 15% or so to operating costs in some cases. The conflict in West Asia has only worsened matters.

Costs Keep Climbing: Due to geopolitical tensions, raw materials, packaging and freight are all getting pricier. Dollar-denominated inputs...