Homegrown and Proud: Rukam Capital Report Reveals New India’s Growing Love for Local Brands

Walk through any festive bazaar in India today, and you’ll notice a subtle yet powerful shift. From healthier mithai to sugar-free snacks, from artisanal kitchenware to pet care products with a social cause — consumers are increasingly picking homegrown brands over global giants. A fresh wave of pride, backed by aspiration and authenticity, is reshaping how India shops.

A new report by Rukam Capital, titled “Aspirations of New India: How Consumers Select, Shop, and Shape Brand Connections”, unpacks this evolving mindset. The research, conducted in collaboration with YouGov across 5,000 respondents in 18 states, reveals that more than half of Indian consumers now prefer to buy from homegrown and small businesses.

This isn’t just about affordability. It’s about belonging, trust, and cultural resonance. Consumers are increasingly placing their bets on startups and local brands that bring innovative solutions for everyday problems, tell authentic stories, and deliver consistent quality.

India’s Young and Aspirational Consumers

India is poised to become the world’s second-largest consumer economy by 2030, and the study suggests that the new-age buyer is no longer passive. Instead, they are shaping trends and forcing brands to rethink their playbooks.

“India is telling us that it’s not just about what a brand sells, but how it makes them feel connected, understood, and valued,” said Archana Jahagirdar, Founder and Managing Partner at Rukam Capital. “The Indian consumer is evolving with affordability, aspiration, and digital sophistication as its core pillars. Loyalty now goes beyond discounts – it’s about creating meaning in everyday consumption.”

The research shows that 58% of consumers actively shop from local or small businesses, with 76% appreciating honest communication and 30% valuing the sense of community these startups foster. Startups, the study says, are increasingly being seen as customer-centric, sustainable, and socially conscious, making them stand apart.

Festive Shopping with a Twist: Health, Heritage, and Homegrown

Festivals in India have always been synonymous with indulgence. But in 2025, indulgence looks a little different.

• Healthy snacks top shopping lists, with 53% of Millennials and 47% of Gen Z planning to buy them this festive season.

• Sugar-free sweets are seeing a boom, with 73% of younger consumers preferring them over traditional mithai.

• One-third of shoppers now actively look for products with cultural value, blending tradition with mindful living.

Tier 1 cities are driving this cultural-conscious consumption, with 61% of urban buyers choosing homegrown brands and 59% prioritizing cause-driven shopping.

Payments and Digital Sophistication

India’s payment ecosystem also mirrors this diversity of preferences.

• Tier 1 cities showcase financial maturity, balancing UPI (36%) with strong credit card adoption (24%), driven by cashback and rewards.

• Tier 3 towns, on the other hand, rely less on cards (just 16%) but show the highest UPI usage (42%), proving that mobile-first payments have become the default.

Meanwhile, digital habits are being shaped by regional language content, mobile-first browsing, and social media responsiveness. An impressive 73% of consumers engage with brands on social media, and 67% prefer brands that actively respond online.

What Drives Purchase Decisions?

For all their sophistication, Indian consumers remain value-conscious at the core.

• Discounts remain the biggest motivator, with 48% checking e-commerce sites and 47% waiting for deals before buying.

• Customer service ranks high, with 32% saying reliable support influences their brand loyalty.

• Product quality remains non-negotiable – 29% of consumers report switching brands due to a dip in quality.

Interestingly, North India is seeing a women-led business wave. About 35% of respondents there said they shop exclusively from women-led startups, with Millennials and Gen Z making up 72% of this group.

Influencers, In-Game Ads, and New Discovery Channels

Celebrity influence is still alive, but not in the way one might expect.

• Pet care (50%) and kitchen appliances (43%) are heavily swayed by celebrity and influencer endorsements.

• Fashion, however, remains less dependent – only 3 in 10 consumers say their purchases are guided by celebrity voices.

A surprising new entrant in the discovery funnel is in-game advertising. More than 50% of consumers have made purchases after encountering in-game ads, with Gen Z and women leading the trend. Virtual try-ons and immersive digital experiences are also shaping decisions, especially in metros.

Categories on the Rise

According to the report, the fastest-growing consumer categories today are:

• Health & Wellness

• Kitchen Appliances

• Food & Beverages

• Fashion Accessories

• Pet Care

The mode of purchase, however, differs across categories. Fashion accessories (60%) and food & beverages (39%) continue to thrive offline, while pet care (63%), home appliances (58%), and wellness (53%) lean heavily on online-first models.

And when it comes to payments, UPI is the clear festive hero, with two in five shoppers choosing it for speed and convenience.

The Big Picture

The “Aspirations of New India” report paints a portrait of a consumer who is:

• Proudly local – choosing homegrown brands for trust and authenticity.

• Digitally native – discovering, engaging, and transacting online-first.

• Health- and culture-conscious – blending wellness with heritage in festive purchases.

• Cause-driven – willing to support sustainable and women-led businesses.

For startups, this shift is both an opportunity and a challenge. Building brand loyalty in India’s new consumer landscape means going beyond flashy campaigns or deep discounts. It’s about telling a meaningful story, offering consistent quality, and creating communities where consumers feel they belong.

As Jahagirdar of Rukam Capital summed it up: “Even the most traditional categories are being forced to reinvent themselves – whether through healthier alternatives, transparent communication, or community-driven engagement. The Indian consumer is writing a new playbook, and brands that listen closely will be the ones that thrive.”