Every few months, a new D2C brand pops up in India with the same playbook: take a commoditised product, slap on sleek branding, price it 5–10x higher, burn money on influencer campaigns… and wait for magic.
Spoiler: it rarely works.
Because in India, premiumising a commoditised product without true differentiation is a recipe for bleeding cash.
The Leggings Example
Take leggings. A few D2C brands have tried pricing them at ₹1,500+. The problem?
- You can easily get perfectly decent leggings for ₹200–300 at local markets or from mass retail brands.
- For the average consumer, the difference between a ₹200 legging and a ₹1,500 legging is negligible.
- Branding and influencer marketing alone can’t convince a value-conscious Indian consumer to pay 7x more for something that feels the same.
The result? You’re not building loyalty. You’re renting attention. And the second you cut marketing spend, sales vanish.
Why Premiumisation Fails for Commodities in India
India is Still a Value Market
India is not the US. Here, consumers benchmark purchases against lowest-available price. Unless the premium product delivers a clear, tangible benefit, people won’t justify paying extra.
Negligible Product Differentiation
If the legging looks and feels like every other legging, no one cares about your brand story. Without clear technical superiority (e.g., Lululemon’s patented fabrics), “premium” is just a higher price tag.
Influencer Hype Doesn’t Drive Habit
Yes, influencer campaigns can create short-term spikes. But when the customer realizes the product isn’t fundamentally different, repeat purchases don’t happen.
CAC stays high, LTV stays low.
Commodities Have Low Switching Costs
If a customer can get the same thing at 1/5th the price, there’s no reason to stay loyal to your brand. You’ll bleed trying to buy retention through discounts and paid ads.
When Premiumisation Can Work
Premiumisation isn’t always doomed. It works if:
- There’s genuine innovation. Example: Lululemon (leggings with unique fabrics and fits designed for athletes).
- You solve a clear pain point. Example: Dyson (premium vacuum cleaners that actually outperform alternatives).
- The category has lifestyle aspiration. Example: Apple or Starbucks.
But these cases all have one thing in common: the product itself is visibly, tangibly better. Without that, premiumisation is just packaging.
Lessons for D2C Founders
If you’re thinking of launching a “premium” version of a mass product in India, ask yourself:
- What problem am I solving that cheaper alternatives don’t?
- Can the customer feel/see the difference in 30 seconds of using it?
- Will they still buy again without a discount or influencer nudge?
If the answer is “no,” then you’re not building a business — you’re burning money.
Final Word
India is a price-sensitive market where consumers are spoilt for choice. Premiumisation without real product differentiation isn’t strategy, it’s wishful thinking.
Strong branding can amplify a good product — but it can’t compensate for a lack of differentiation.
If you’re building in D2C, don’t try to premiumise a commodity. Innovate, or pick a different category. Otherwise, you’ll spend your way into irrelevance.