True to all of our early-stage investments, East Ventures’ thesis behind our Direct-to-Customer (D2C) bets is its founders. A D2C startup is a company that sells its products directly to consumers, meaning there is no middleman between the consumer and the company.
In each of their D2C segments, our founders are passionate about building customer-focused, innovative, and personalized brands.
On the macro side, as global connectivity soars, generational shifts such as the growing prevalence of digital natives, including Gen Z and millennials, are shaping consumer behavior significantly.
According to a McKinsey report, Gen Zs—true digital natives—are putting a great deal of time and consideration into their purchases, to make sure a product aligns with their needs and values.
This type of consumption involves patience; Gen Zs are willing to delay purchases until they truly need them and until they find the best deals.
The recent Indonesia Millennial and Gen Z 2025 report by IDN echoes this; it revealed that both generations have adopted frugal living in response to rising costs, but with different focuses. Gen Z prioritizes saving through discounts and deals, while millennials balance cost-cutting with side jobs to ensure financial stability.
Their unique consumer behaviors are fundamentally reshaping the retail landscape. For instance, at least 43% of Gen Z consumers globally prefer purchasing directly from brands, a significantly higher percentage than older generations.
This strongly indicates that for younger demographics, a direct relationship with the brand fosters a sense of authenticity and reliability. Moreover, Gen Z’s spending power is projected to grow to an estimated US$12 trillion globally by 2030, posing a massive opportunity for brands to seize.
In Indonesia alone, millennials and Gen Z account for more than half of the nation’s entire population, contributing to most of Southeast Asia’s millennials and Gen Z in total demographics.
The appeal of the D2C model extends beyond trust. PwC’s report on consumer market trends also emphasizes the critical role of “NextGen customer experience.”
It points out that brands are focusing more on personalization and leveraging customer data to build relationships. D2C startups’ underlying advantage lies in their vast opportunity to provide personalized experiences, which can also foster brand loyalty and ultimately meet the evolving demands of the modern consumer.
Building on this foundation of digital intimacy, today’s consumer landscape is increasingly shaped by the “experience economy,” the fourth stage of economic development where the core value shifts from goods and services to creating memorable, engaging, and emotionally connective interactions.
East Ventures-backed D2C startups are at the forefront of capturing the consumer shift
One of East Ventures’ portfolio companies, Compawnion, emphasizes the improved overall health and well-being of companion animals, driven by the rising trend of pet humanization. The group houses several healthy pet food brands, including Pawmeal, Catto, and UGO.
The company was founded by three incredibly passionate women: Stephani Herman, Tania Suganda, and Valerie Amintohir. They do deep and comprehensive research with pet nutritionists, including Valerie herself, who is a certified Canine Nutritionist and Diet Formulator.
For Compawnion, fostering brand loyalty and trust is imperative. Having pets of their own, Compawnion’s sales and marketing personnel closely understand the struggles of pet owners and offer an extensive customer experience and service. That, essentially, is how they enter these communities to gain an in-depth understanding of what their customers need.
Compawnion also has monthly user-generated content with their customers, resellers, and Key Opinion Leaders (KOLs) like influencers and vets, integrating all stakeholders into their platform and brands.
There is also Diri Care, a consumer healthtech company for people with skin, hair and intimate health concerns and beyond. The firm’s omnichannel approach allows its customers—or patients—to get in touch with the clinical team for online consultations, purchase Diri Care products, and make offline appointments.
When it comes to customer engagement, Diri Care’s clinical team also does routine check-ups on the customers and offers further treatments at its offline clinics.
RPG Commerce, on the other hand, started out as a purely digital brand when it was first incepted. Today, with its biggest brand Montigo, the omnichannel powerhouse operates over 50 retail stores across Southeast Asia offering unique experience to visiting customers.
These stores are specifically designed for “experiential retail,” where customers can customize and interact with the products, creating a deeper, more personal connection that drives brand loyalty.
Kasual, Indonesia’s D2C personalized pants wear for men, has also created a sticky customer base that identifies with efficient, well-groomed, and environmentally conscious young professionals.
Kasual’s innovative personalization and technological approach establish it as Indonesia’s premier fashion-tech and instant commerce platform. The company maintains comprehensive control over its supply chain, empowering local sewists to manufacture its products.
Several other East Ventures-backed D2C startups have shared their ways and strategies in staying at the forefront of Southeast Asia’s consumer revolution. Read their takes here.
Knowing your customers and staying innovative is key to maintaining longevity
As digital penetration continues to increase and more new D2C firms are burgeoning in the market, one of the critical levers of success for lasting D2C companies is the ability to know your customers and to grow with them.
D2C companies must stay innovative and in touch with what their customer segments are looking for. While trends change constantly, astute D2C brands can differentiate between noise and substance.
The most successful D2C companies worldwide can authentically and intentionally check in with their most sticky and loyal customers, leveraging customer calls, focus groups, and data to help them create product development pipelines and make critical decisions.
Ultimately, not just about adapting to local tastes and preferences; D2C brands’ sustainability anchors to building customer stickiness and trust.
Today’s consumers are getting savvier, they seek more information and genuine connection with a brand before making a purchase and eventually become a returning customer.
A bottom-up approach to marketing, being on the ground, and direct engagement with consumers are key strategies in building a loyal customer base.
From the early days, it is essential to know who your customers are and why they have chosen you. D2C players have an advantage over traditional e-commerce players because they can access personal data and invaluable insights to drive innovation strategy.
Paired with a unique and tailored online shopping experience, pioneering D2C companies can develop campaigns, drive omnichannel strategies, and seize the “experience economy” era that helps create and maintain brand loyalty in the long run.
To date, East Ventures’ D2C portfolio companies also include ESQA, Fore, KLAR Smile, Mighty Jaxx, Novelship, The Parentinc, UENA, and many others among our ecosystem of 300+ portfolios.
There is much room for D2C brands to evolve and grow, and we are excited to continue to be the first believers in pioneering companies at the forefront of innovation.
If you are a startup founder building a D2C brand and looking for funding, pitch to us.
