More than 50% of Indians prefer local brands for everyday buying

New Delhi: A majority of Indian consumers now prefer shopping from homegrown and small business brands, according to a new report by venture capital firm Rukam Capital. The study, titled Aspirations of New India: How Consumers Select, Shop, and Shape Brand Connections, maps consumer behaviour, preferences, and purchase drivers across urban and semi-urban India.

The research indicates that innovative solutions for everyday problems, authentic storytelling, and consistent quality are key factors driving consumer loyalty. Over half of respondents reported a preference for homegrown brands, while 76% cited honest communication and problem-solving capabilities as important considerations. 

About 30% noted that community-building by startups contributes to brand appeal, with 40% highlighting customer-centric approaches. Sustainability also influences choices, with 76% actively seeking eco-friendly products.

Digital engagement and regional content shaping media habits

Indian consumers increasingly access content via mobile devices and regional-language platforms. Seventy-three per cent engage with brands on social media, and 67% favour brands that respond promptly online. 

Payment habits vary by region: Tier 1 consumers balance UPI (36%) with credit adoption (24%) supported by rewards and cashback, while Tier 3 consumers rely less on cards (16%) and use UPI more frequently (42%).

Influence of celebrities and social figures

Celebrity and influencer endorsements play a notable role in some categories. In pet care, 50% of consumers report discovering brands through influential voices, while kitchen appliances follow closely at 43%. Fashion purchases are less influenced by celebrity endorsements, with only 30% of respondents reporting an impact.

Purchase drivers and consumer priorities

Discounts remain a significant motivator, with nearly half of consumers checking e-commerce sites or waiting for deals before making purchases. Customer service also influences selection, cited by 32% of respondents, while 29% consider inconsistent product quality a deterrent. 

The study notes a strong preference for women-led businesses in North India, particularly among millennials and Gen Z, with 72% favouring such brands. Tier 1 consumers show higher alignment with cause-driven shopping compared to Tier 2 and Tier 3 segments.

Festive season trends

Festive purchasing reflects a renewed interest in heritage and wellness. One third of respondents prioritise products with cultural value. Millennials and Gen Z are increasingly selecting healthier snacks (53% and 47%, respectively) and sugar-free sweets (73%). Tier 1 shoppers show the strongest preference for homegrown brands (61%) and cause-driven products (59%).

Emerging categories and channels

The study highlights health and wellness, kitchen appliances, food and beverages, fashion accessories, and pet care as categories showing growth. Offline channels remain important for fashion accessories (60%) and food & beverages (39%), while online-first categories include pet care (63%), home appliances (58%) and health & wellness (53%). UPI is the dominant festive payment method, chosen by around two in five shoppers for speed and convenience.

New discovery and engagement trends

Digital-first experiences are shaping purchase decisions. Over half of respondents reported buying products after exposure to in-game advertisements. Virtual try-ons and immersive experiences influence shopping behaviour, particularly in metropolitan areas. Brands that actively engage on social media retain higher loyalty.

The survey was conducted with YouGov, collecting responses from more than 5,000 participants across 18 states to capture evolving consumer trends in India. The findings highlight a consumer base that is young, aspirational, digitally savvy, and increasingly conscious of sustainability, authenticity, and community engagement.