The Hidden Economics of Skincare: What You're Really Paying For

What does the real economics of building a premium skincare brand in India look like? From ingredient sourcing to influencer marketing and customer retention, we break down how a ₹3,200 product is priced, what actually goes into its cost structure, and how decisions around formulation, R&D, and marketing define both perception and profitability.

In this episode you’ll learn:
Ingredient and formulation costs: and why potency changes everything
How R&D cycles, lab partnerships, and exclusive raw materials shape pricing
Why some formulas are built from scratch instead of white-labelled
The logic behind discounting, CAC, and repeat customer economics
The evolving role of influencer marketing and content-led brand growth

00:00 Why is d'you so expensive?
00:20 Cost of Formulation
01:52 Trend v/s Research
04:05 White Labelling by Mass Brands
04:40 R&D in Korea
05:25 Fixed Expenses & Warehousing
06:05 Discount Strategy
07:12 Post Sale Debrief
08:01 Marketing Costs for D2C brands
08:48 Influencer Marketing
10:31 Growth in a cluttered market
11:28 Retention Ads
11:51 Founder Insights