India's D2C startups face mounting pressure as manufacturing costs surge 15-20% due to geopolitical crisis, raw material shortages, and labor exodus. Contract manufacturers are passing increased expenses to direct-to-consumer brands, which hesitate to raise consumer prices. The result is severe cash flow strain, extended delivery timelines, and squeezed margins across beauty, apparel, and home decor sectors. Rising commercial LPG costs and commodity price volatility are forcing brands to renegotiate supplier agreements. New vendor relationships are particularly vulnerable as trust becomes harder to establish during volatile market conditions. The affordability crisis threatens brand viability.
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