Indian consumers show strong tilt toward local brands, study finds

BENGALURU: More than half of Indian consumers prefer buying from homegrown and small businesses, with sustainability and authenticity ranking ahead of celebrity endorsements in shaping brand choices, according to a new survey by venture capital firm Rukam Capital.

The Aspirations of New India report, conducted with YouGov across 5,000 respondents in 18 states, found that 58% shop mainly from local brands, and 14% are willing to pay a premium of up to 30% for them. Three in four respondents said they appreciate honest communication and eco-friendly practices, while 40% highlighted startups’ customer focus and social impact as reasons for loyalty.

Festive buying patterns underline this shift. Over half the respondents said they plan to purchase healthy snacks this season, while nearly 40% prefer sugar-free sweets. Among millennials and Gen Z, the trend is sharper, with 73% opting for sugar-free mithai. Tier-1 consumers are more likely to shop cause-driven, with 59% favouring such brands, compared with a third in Tier-2 and Tier-3 cities.

Digital habits are also reshaping discovery. The study shows 73% of consumers engage with brands on social media, and 67% prefer those that respond quickly. More than half said they have purchased products after seeing in-game ads, with women and Gen Z equally influenced, marking gaming as a new shopping trigger.

Regional differences remain: consumers in the North show stronger preference for women-led brands, while the West demonstrates higher loyalty to homegrown businesses. East India shoppers lean heavily on discounts and reward points, and in the South, offline and tradition-led buying continues to dominate.

Discounts and affordability remain central to purchasing decisions, but quality lapses and poor service are cited as the biggest deterrents. Across categories, health and wellness, kitchen appliances, food and beverages, fashion accessories, and pet care are emerging as the strongest growth segments.

“It is not just about what a brand sells, but how it makes consumers feel connected, understood, and valued. Building loyalty in India now goes far beyond discounts; it’s about creating meaning in everyday consumption,” said Archana Jahagirdar, founder and managing partner at Rukam Capital.