Limited Supply
Season 14, Episode 7: The Truth About DTC and Distribution
Featuring Gulshan Kumar (CEO & Co-founder, Swishables)
Date: November 12, 2025
Host: Nik Sharma

Episode Overview

Nik Sharma welcomes Gulshan Kumar, CEO and co-founder of Swishables, to dive deep into the real, unsugarcoated world of DTC (Direct-to-Consumer) brands and distribution strategy. This episode explores why so many DTC founders miss the mark by focusing on hype and PR rather than honest, scalable business fundamentals. Nik and Gulshan break down what makes a CPG (Consumer Packaged Goods) brand truly scalable, the necessity of omnichannel distribution, lessons from prior businesses, and the emotional impact of branding. This is an unfiltered, tactical discussion perfect for founders aiming to build not just buzzworthy but durable brands.

Key Discussion Points & Insights

1. Swishables: The Product & White Space

• [02:55] Gulshan Introduction: Swishables is a portable, single-use, 100% recyclable mouthwash sachet, designed for quick refresh moments beyond the bathroom routine (e.g., after coffee, before meetings/dates).
  • Quote: “We’re not the brand that’s gonna sit on your bathroom countertop... It's all the moments that happen in between that.” — Gulshan [03:08]
• Gulshan describes Swishables as a new vehicle for freshening breath, “more portable than gum or mints” and “a little bit more refreshing” [03:48].

2. What Makes a Brand Scalable & Sustainable?

• Distribution-First Mindset
  • Gulshan draws heavily from a decade in the bottled water industry, explaining that success is rooted in the breadth of distribution, not just DTC or retail.
  • Quote: “Anybody who’s in this business is going to tell you it’s distribution, distribution, distribution.” — Gulshan [04:23]
• Definition of “Scalable”
  • Not about manufacturing ease, but “how many places can I sell it?” ([06:21]).

3. Criteria for a Good Business Idea

• Financial Validity: Focus on strong unit economics and profitability from day one; past pain points with aluminum bottled water made him laser-focused on evaluating cost structures upfront.
  • Quote: “Number one, it’s what are the unit economics and how can we make this profitable?” — Gulshan [07:27]
• White Space & Channel Innovation:
  • Don’t just fight for shelf space—create new channels. Examples: golf courses, hotels, airlines, restaurants.
  • Quote: “It’s not competing on the shelf, it’s how do you create space on the shelf...creating space outside of the shelf.” — Gulshan [09:12]
  • Playbook Protection: Gulshan jokes about withholding their “20 alternative distribution points” to protect their playbook [11:30].

4. Breaking Out of the DTC/Traditional Retail Mold

• Beyond the Status Quo: Most founders focus on DTC/retail, but Gulshan advises to be “uber curious” and create your own distribution channels ([11:15]).
• Pay-to-Play in CPG:
  • In drinks/beverages, pay-to-play is common; for a new mouthwash category, it’s not, but Swishables is creating opportunities there.
  • Quote: “We are creating that pay to play option for this category because it hasn’t existed yet.” — Gulshan [12:44]

5. Competition and Copycats

• Brand Moat Over IP:
  • Copycats are inevitable; the focus should be on brand, team, speed, and unique partnerships.
  • Quote: “Imitation is the biggest form of flattery… You can't focus your time and energy on that. It's about building brand and talking about those alternative channels.” — Gulshan [14:05]

6. Retail vs. DTC Entry Strategy

• Data-Driven Decisions: Retailers are risk-averse; DTC can build proof, data, and insights before big retail launches.
  • Quote: “Retailers accepting you without any data is tricky... The DTC model first is a little bit more strategic.” — Gulshan [16:01]
• Retail Price Floors: Entering retail (especially Walmart) too early can harm long-term pricing and margin across all channels ([17:39]).

7. Marketing for Retail & Awareness Flywheels

• Unorthodox Awareness Building: Use food service (hotels, airlines, campuses, etc.) as a “marketing flywheel” to seed product with consumers before they ever see it in retail ([19:51]).
  • Quote: “Those are actually awareness and marketing channels that create flywheels for retail.” — Gulshan [20:26]
• On-Shelf Isn’t Enough:
  • The real game is “getting off the shelf”—invest in creative merchandising (clip strips, displays, sampling) [21:26].

8. Emotional Branding as Brand Moat

• Features vs. Feelings:
  • Great brands sell emotional outcomes, not features and benefits.
  • Quote: “Good brands sell features and benefits but great brands sell emotional outcomes.” — Gulshan [29:49]
• Examples:
  • Corona: transports you emotionally to a beach ([30:22])
  • Nike: makes you feel faster, more capable
  • Apple: evokes a “future-focused” feeling in-store
  • Swishables wants to sell “confidence,” not just mouthwash ([29:49]).

9. Team-building and Hiring

• Build a “team of Avengers;” treat team structure as critical as the core product.
  • Immediate critical hires: “ops” (operations) and ecomm support ([33:06]).

10. Overrated and Underrated CPG Metrics

• Overrated: ROAS (Return on Ad Spend) is misleading; focus on POAS (Profit on Ad Spend), which reflects true business health.
  • Quote: “ROAS is complete BS. It should be profit on ad spend—poas.” — Gulshan [36:17]
• Underrated: Profitability and actual contribution margin must not be ignored, even in the early, “growth at all costs” stages ([36:17-37:49]).
  • Nik concurs, “ROAS is too broad… easy to hide… doesn’t help in the long run.” ([38:29-38:41])

Notable Quotes & Memorable Moments

• On White Space:
  • “It’s not competing on the shelf, it’s how do you create space on the shelf.” — Gulshan [09:12]
• On Copycats:
  • “Imitation is the biggest form of flattery so the product is good, people are going to copy, but you can’t focus your time and energy on that.” — Gulshan [14:05]
• On Emotional Branding:
  • “Good brands sell features and benefits but great brands sell emotional outcomes.” — Gulshan [29:49]
• On Metrics:
  • “ROAS is complete BS. It should be profit on ad spend—poas.” — Gulshan [36:17]
• On Team:
  • “The team is a product that you’re building.” — Gulshan [35:32]

Timestamps for Important Segments

• [02:55] — Gulshan's intro & Swishables background
• [04:23] — Distribution as the heart of CPG
• [06:21] — What “scalable” really means
• [07:27] — Defining a good business idea
• [09:12] — Finding and creating white space
• [12:44] — Pay-to-play in CPG & category innovation
• [14:05] — On competition and building a brand moat
• [16:01] — Why start DTC before retail
• [20:26] — Awareness flywheels and food service
• [21:26] — Creative marketing & retail velocity
• [29:49] — Emotional benefits vs. features
• [33:06] — Foundational hires for growth
• [36:17] — Overrated vs. underrated performance metrics

Final Thoughts

This episode is a crash course in CPG brand-building for 2025—a mix of honesty, practical strategy, and actionable insight. Gulshan’s approach is all about finding distribution white space, focusing relentlessly on profitability, and creating an emotional connection consumers won’t forget. As Nik notes, these conversations go beyond recycled DTC advice to what really moves the needle behind the scenes.

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