D2C Subscription Model Launch for an FMCG Brand
The company had tried D2C twice before and failed twice before. The first attempt died at the technology selection stage, six months of meetings, no launch. The second died when the distribution team blocked it on channel conflict grounds, which was a legitimate concern dressed up as a bureaucratic objection. By the time this engagement started, the leadership team was cautious in a way that only comes from having been burned. They needed a plan that actually accounted for the reasons the previous two had failed.
Four weeks of discovery: 20 customer interviews and a close look at how three comparable FMCG brands had managed the distributor conflict issue. The key insight, the one that unblocked the distribution team, was that D2C needed to offer different pack sizes from the modern trade range. A clean enough separation that distributors couldn't credibly claim cannibalisation. The board approved the business case at week six. Technology (Shopify + subscription app) locked by week eight. Fulfilment model (3PL in Bhiwandi, 4 regional spokes) confirmed by week twelve. MVP live in month five.
D2C revenue in the first full quarter was ₹1.4 Cr, above the ₹1.1 Cr target. Subscriber base at 60 days was 2,900, slower than the 3,500 planned, but 90-day retention of 71% was above the modelled 65%. The channel conflict that had killed the previous attempt didn't materialise in year one. The operations director said that solving the distributor question first, before anything else, was what made the difference this time.
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