Indian consumers reconsider brand choices amid economic pressures

New Delhi: Indian consumers are reassessing their retail habits, with increasing focus on price, value, and pack size, as well as rethinking the significance of brands in their daily lives. According to the latest EY Future Consumer Index (FCI) – India edition, 52% of consumers are shifting towards private labels, and 70% believe these products now offer better quality than before.

Private labels gain traction

The report suggests that private labels are reshaping consumer perceptions and increasingly being viewed as viable alternatives to established brands. A majority (70%) of respondents said these store-owned labels are just as capable of meeting their needs as branded goods.

Brand-led efforts such as reformulating ingredients or modifying product features are not always seen in a positive light—34% of consumers interpreted these changes as cost-saving measures rather than genuine innovation. Moreover, 59% said they purchase branded products only when discounts are available, indicating a clear shift towards price-conscious buying over traditional brand loyalty.

The data also shows that retailers are adapting to this trend. Three-quarters (74%) of consumers reported noticing a wider range of private label products in stores, and 70% observed more of these items placed prominently at eye level. Additionally, 69% said that private label products helped them save money.

Angshuman Bhattacharya, Partner and National Leader, Consumer Products and Retail Sector at EY-Parthenon, said, "Consumer behaviour has traditionally evolved in response to changing economic situations, but the current shifts appear to be more permanent. Retailers are confidently launching private labels and allocating prime shelf space to them, while technology is enhancing the shopping experience by providing consumers with limitless options and the ability to compare products. The rapid growth of private labels is further evidenced by the rising popularity of fresh, new brands among Indian consumers. At the same time, this presents established brands with both the opportunity and the imperative to deepen their connection with consumers and explore innovative ways to stay relevant."

Brand loyalty remains, but conditional

Despite the growing popularity of private labels, brand loyalty has not disappeared entirely. Nearly half (47%) of respondents indicated they would return to branded products if they offered better taste, quality, or performance. Similarly, 44% said they would switch back for improved value for money, and an equal proportion (44%) are willing to pay a premium for enhancements that lead to better product performance.

Certain product categories continue to be associated with innovation, particularly clothing and footwear (58%), beauty and cosmetics (51%), and personal care (45%), which respondents credited for ongoing investment in research and development.

The survey also highlights the increasing influence of technology on purchasing decisions. Around 62% of respondents reported using artificial intelligence (AI) recommendations when choosing products, and 58% said AI had improved their shopping experience.

The findings reflect a broader shift in consumer expectations. Being “good enough” may no longer suffice, not only for retailers but now for well-established brands as well. As consumers prioritise quality, value, and relevance, brands that fail to adapt risk losing ground. However, those that respond to these changes effectively may still cultivate loyalty in an evolving and competitive market.