#AskTheExpert: Arjun Vaidya on Building & Scaling Brands

In this exclusive AMA session, industry expert Arjun Vaidya shares invaluable insights on the ever-evolving D2C landscape, from customer acquisition to quick commerce and profitability.

The Direct-to-Consumer (D2C) landscape is evolving at lightning speed. What worked yesterday may not work today, and founders are constantly adapting to new trends, changing consumer behaviour, and emerging business models.

To break down these shifts and uncover what’s next, we turn to someone who’s been at the forefront of India’s D2C revolution- Arjun Vaidya. A D2C entrepreneur, early-stage investor, and mentor, Arjun took Dr. Vaidya’s, an age-old family legacy of Ayurveda and built it into India’s largest Ayurveda brand online.

Arjun’s story began in 2009 when he attended Brown University and witnessed the booming organic and wellness movement in the U.S. Seeing yoga transform into a multi-billion-dollar industry made him reflect on Ayurveda’s untapped potential back home in India.

But his real turning point came in 2016 when he left his job to take over his family’s Ayurveda legacy, launching Dr. Vaidya’s. Over the next four years, the brand reached over 2 million consumers across 500+ cities before being acquired by the RP Sanjiv Goenka Group in 2019. Now, as a venture investor leading Verlinvest’s V3 Ventures, Arjun invests globally in early-stage startups.

Today’s article is inspired by an exclusive AMA session with Arjun Vaidya, where he shared deep insights on the evolving D2C landscape and addressed some of the biggest questions that D2C founders are grappling with today.

1. What's the best business model for fashion quick-commerce?

A few years ago, the idea of fashion in quick commerce seemed unrealistic. But today, consumers are buying everything from PlayStations to sneakers on quick commerce platforms. However, fashion in this space presents unique challenges, particularly around inventory and assortment.

Unlike groceries or everyday essentials, fashion has an extensive range of styles, colours, and sizes, making it difficult to stock all SKUs in dark stores.

A hybrid model works best- keeping core fast-moving SKUs in the dark stores for immediate fulfilment while leveraging a central store for broader selection and next-day delivery.

Also, expanding delivery windows to 30 minutes or an hour instead of the typical 15 minutes could make quick commerce more viable for fashion.

2. Is it important to maintain pricing across all channels?

In the short term, brands might experiment with different pricing strategies across platforms, testing what works best. However, in the long run, consistent and balanced pricing is key to building trust.

Today’s consumers are smarter than ever. They compare prices across marketplaces, brand websites, and even WhatsApp stores before making a purchase. If they notice a price gap, they’ll go for the better deal or, worse, lose trust in the brand.

Marketplaces like Swiggy and Zomato charge commission fees, which might tempt brands to increase prices on those platforms. However, analysing unit economics holistically is crucial. Despite the added costs, higher sales volume and better reach on these platforms might still make them more profitable than a brand’s own website.

At the end of the day, pricing should be sustainable, competitive, and customer-friendly.

3. Profitability vs. Growth: What should early-stage founders prioritise?

For early-stage founders, the profitability vs. growth debate is one of the toughest decisions to navigate. Should you focus on scaling aggressively, even if it means burning cash? Or should you keep a tight grip on expenses and aim for profitability from day one?

You should have a balanced approach- prioritising growth while staying close to breakeven.

Let’s take a fashion brand as an example. Keeping inventory levels low might seem like a cost-saving strategy, but it comes with trade-offs. Imagine a customer landing on your website, excited to buy a trending jacket, only to find it constantly out of stock. Not only do you lose that sale, but you also risk losing the customer forever. Worse, repeated stockouts can hurt your brand’s reputation- consumers may start assuming your brand is unreliable or unable to meet demand.

On the other hand, overinvesting in inventory without understanding demand can tie up cash in unsold stock, leading to heavy discounts just to clear it out.

4. How can D2C brands acquire new customers?

Building a strong customer acquisition strategy is essential for D2C brands. Here are Arjun’s top recommendations:

• Have a functional website- This is non-negotiable!

Your website is your digital storefront, and unlike marketplaces, it’s the one place where you can control the entire experience. If your site is slow, confusing, or lacks credibility, customers will bounce faster than you can say "conversion rate."

• Leverage Social Media Testimonials

Consumers trust real people more than brands. That’s why social proof is a game-changer. Encourage happy customers to share their experiences, whether through:

• Short-form video testimonials (UGC content on Instagram/TikTok)

• Authentic reviews on your website & social media

• Influencer & micro-influencer shoutouts

• Use digital technologies to amplify word-of-mouth

Great brands aren’t just bought; they’re talked about. In the D2C space, referral programs, ambassador programs, and community-driven marketing can fuel massive organic growth.

• Educate your consumers- Sell through storytelling

People don’t just buy products; they buy stories, solutions, and emotions. If you’re selling a skincare product, don’t just say “Hydrating Face Cream”; tell the story behind it. Use content marketing to educate your audience. The more informed they are, the more likely they are to trust and buy from you.

5. How Can Brands Increase Revenue from Their Website?

Here are three founder-tested strategies:

• Invest in Meta Ads & Google Ads

• Meta Ads (Facebook & Instagram): Best for brand awareness, retargeting, and visually engaging product discovery.

• Google Ads: Ideal for capturing high-intent shoppers who are actively searching for your product category.

• Collaborate with Influencers

Let’s be honest: People trust people, not brands. That’s why influencer marketing is so powerful. When potential customers see someone they follow (even a small influencer) using and loving your product, it instantly builds credibility.

• Optimise the Checkout Experience

A customer loves your product and adds it to their cart but never completes the purchase. Why? Because the checkout process was too long, confusing, or untrustworthy. Reduce friction in the purchasing process to improve conversions.

6. What are the Top 4 things D2C founders should keep in mind in 2025?

Consumer expectations are evolving, and staying ahead of the curve is essential. Here are four key trends that will shape D2C in 2025:

• Faster Delivery: Consumers expect speed, and brands must optimise logistics to meet these demands.

• Better Unboxing Experiences: Packaging matters- make it memorable to enhance brand recall.

• Beyond Performance Marketing: While paid ads work, building organic distribution channels through content and social media will be critical.

• Customer Loyalty: Brands need to reward repeat customers and focus on customer delight.

7. Which D2C categories see quality prioritised over price?

In certain categories, consumers are willing to pay a premium for quality. According to Arjun, these include:

• Fashion: Consumers value fit, durability, and aesthetics.

• Health & Wellness: Products that impact health require trust and high standards.

Final Thoughts

After investing in 100+ D2C startups, we know exactly why Arjun says that brands must evolve with changing consumer behaviour, technology, and distribution models to stay ahead. Because the brands that move with these shifts, rather than resist them, will lead the way.

Consumers shop across D2C websites, marketplaces, quick commerce platforms, and social media. If you're not meeting them where they are, someone else will. And, if that someone is providing better pricing, experience, and support, you might as well bid that customer farewell.

Technology is also reshaping how brands interact with customers, from AI-driven personalisation to seamless shopping experiences. Trends move fast- what works today might be irrelevant tomorrow, so staying ahead isn’t optional- it’s survival.

But at the core of it all, the customer is everything. No amount of marketing or tech can replace genuine trust and loyalty.

Brands that listen, adapt, and build real connections will be the ones that stand the test of time.

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