New Delhi: A renewed sense of pride in local and homegrown brands is shaping the purchasing decisions of Indian consumers, according to Rukam Capital’s latest research report, “Aspirations of New India: How Consumers Select, Shop, and Shape Brand Connections.” The study reveals that more than half of Indians prefer to shop from homegrown or small business brands, citing accessibility, relatable founder stories, and authentic value as key drivers of brand love and loyalty.
The report, conducted in collaboration with YouGov, surveyed over 5,000 respondents across 18 states to capture the evolving consumer landscape. It highlights that India’s consumer economy is poised to become the world’s second largest by 2030, with Millennials and Gen Z leading the charge in health-conscious, sustainability-driven, and culturally rooted consumption.
Commenting on the insights, Archana Jahagirdar, Founder and Managing Partner, Rukam Capital, said, “The Indian consumers are no longer passive participants in shaping trends, the market is evolving and is being pillared through affordability, aspirations and a digital sophistication. India is telling us that it is not just about what a brand sells, but how it makes them feel connected, understood, and valued. This shift is forcing even the most traditional categories to reinvent themselves beyond just seasonal triggers, whether that’s through healthier alternatives, transparent communication, or community-driven engagement. For founders, it’s a reminder that building loyalty in India now goes far beyond discounts; it’s about creating meaning in everyday consumption.”
Key Findings of the Report:
1. From Local to Loved
- 58% consumers prefer buying from local or small businesses.
- 76% value authentic brand communication and innovative everyday solutions.
- 30% highlighted community-building efforts by startups; 40% said customer-centricity makes brands appealing.
- Sustainability is a rising priority, with 76% actively choosing eco-friendly brands.
2. Digital & Media Habits
- Mobile-first access and regional language content drive media habits.
- 73% engage with brands on social media; 67% prefer responsive brands.
- Tier 1 shows balance between UPI (36%) and credit adoption (24%), while Tier 3 leads UPI usage at 42% with minimal card reliance.
3. Role of Celebrities & Influencers
- Pet care (50%) and kitchen appliances (43%) are most influenced by celebrity/influencer endorsements.
- In fashion, only 30% report celebrity endorsements as purchase drivers.
4. Purchase Drivers & Deterrents
- Discounts remain the top motivator—48% check e-commerce platforms and 47% research deals before purchasing.
- 32% prioritize customer service, while 29% cite inconsistent quality as a key deterrent.
- 35% respondents in North India shop exclusively from women-led businesses, led by millennials and Gen Z.
5. Festive Shopping Trends
- Wellness and cultural heritage shape purchases: 53% of millennials and 47% of Gen Z prefer healthy snacks; 73% of young consumers prefer sugar-free sweets.
- Tier 1 leads festive shopping with 61% tilt toward homegrown brands and 59% cause-driven purchases.
6. Category & Channel Differentiation
- Offline-leaning categories: Fashion accessories (60%) and food & beverages (39%).
- Online-first categories: Pet care (63%), home appliances (58%), and health & wellness (53%).
- UPI remains the festive payment hero, preferred by 2 in 5 shoppers.
7. Emerging Discovery & Engagement Channels
- In-game ads are driving purchases, especially among Gen Z and women.
- Virtual try-ons and immersive experiences are influencing metros.
- Social media responsiveness plays a critical role in consumer loyalty.
With health & wellness, kitchen appliances, food & beverages, fashion accessories, and pet care emerging as high-growth segments, the report underscores how cultural consciousness, wellness priorities, and digital engagement are reshaping the future of India’s consumer economy.
By spotlighting these shifts, Aspirations of New India not only maps the aspirations of young Indian consumers but also provides founders, startups, and investors a roadmap to align with their evolving values.
