D2C Brands Record Strong Growth in Black Friday Sales – Implications

Shopify vendors set new Black Friday record, taking 4.1 billion in sales | Retail News USA


The article discusses data from GoKwik showing over 36% order growth for D2C brands during the Black Friday sale compared to the previous weekend. This highlights the rising popularity of Black Friday sales in India.

Analysis for Layman:

  • D2C – Direct to Consumer brands that sell directly to customers online
  • GMV – Gross Merchandise Value or total sales value of goods sold
  • RTO – Return to Origin or products returned by customers

Original Analysis:

The strong Black Friday performance continues positive momentum for D2C brands after a successful festive season. It shows the segment’s resilience despite global economic uncertainty. Their wide assortment and value pricing are attracting new online shoppers.

However, higher COD orders also increase working capital needs. And some categories like electronics saw slower growth, indicating market saturation. Brands must innovate products and manage inventories to sustain growth.

Impact on Retail Investors:

The uplift across categories highlights the vast market potential in India’s digitizing economy. Retail investors should evaluate e-commerce enabling companies like payment gateways and logistics providers along with popular D2C brands.

They should also monitor working capital cycles of highly-valued D2C startups. Those unable to manage cash flows due to growing COD volumes risk seeing their valuations correct.

Impact on Industries:

D2C brands’ success will further boost VC/PE investments in the wider segment. Established brands may also launch D2C channels, heating up competition.

Logistics and marketing service providers facilitating e-commerce can see higher business volumes. However, they also need to gear up for rising COD delivery needs.

Payment gateway and checkout optimization companies will benefit from expanding e-commerce GMV. GoKwik’s own growth prospects look positive.

Long Term Positives:

  • Accelerated digital transformation of commerce
  • Improved access and assortment for consumers
  • Maturing logistics and payments ecosystems

Long Term Negatives:

  • Potential value correction for overvalued D2C brands
  • Higher returns and operational costs for brands

Short Term Positives:

  • Windfall gains for D2C brands amid economic slowdown
  • Increased order volumes for e-commerce focused companies

Short Term Negatives:

  • Strain on working capital requirements due to higher COD
  • Inventory management challenges during volatile demand

Companies That May Gain:

E-commerce enablers like Delhivery, Mahindra Logistics, InfoEdge, Paytm etc. can benefit. Large omni-channel retailers may also gain – Trent, Aditya Birla Fashion.

Companies That May Lose:

Slower growth in certain segments like electronics can negatively impact appliance makers like Voltas, Dixon Technologies etc.


The Black Friday sales present a growth opportunity for D2C brands. But they must focus on working capital and inventory planning to sustain volumes profitably.


Krishna, Tanya. “D2C Brands Saw 36.37% Order Surge during Black Friday Sale Weekend, Says GoKwik.” The Economic Times

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