Operations
COGS Benchmarks for Indian D2C Skincare 2026
By Sylvr Founder's Desk
Cost of goods as a share of MRP differs between value, mass-prestige and premium skincare. We do not publish a figure for cost of goods for D2C skincare as a share of MRP yet. The planner uses your own cost of goods, and says when it assumes one.
Cost components
Formulation (raw materials and actives), primary packaging (bottle, jar, dropper), secondary packaging (carton, insert) and inbound freight; we do not publish their typical shares yet.
Cost reduction at scale
At low volumes negotiating power is low; as volume grows, renegotiate raw materials and consolidate packaging; at high volumes, primary-packaging tooling and formulation IP become options.
Questions founders ask
Should I share COGS with my CA?
Yes. CAs need accurate COGS to certify financials and for working-capital advisory. Confidentiality is contractual.
How fast can COGS come down?
Renegotiation brings the first reductions at scale; formulation and packaging IP bring more over years.
Is contract manufacturing or own factory better?
For smaller brands, contract manufacturing usually wins. At larger scale an own factory can pay off if SKU complexity is low.