Rising input costs due to the West Asia conflict, along with concerns about shrinking demand, may squeeze smaller brands from both ends. Direct-to-consumer (D2C) brands are bracing for a difficult stretch ahead, with consumer spending projected to drop 5–6% over the next three months, analysts told ET. Over the past few months, snacks, beverages, fashion, and perfume brands have seen their costs rise in phases.
After the cost of aluminium cans for beverages and glass perfume bottles surged 25-30%, now local logistics is expected to be under pressure with rise in fuel prices.
