Walk through any Indian high street today, and the contrast is subtle but unmistakable. Global chains still drive huge numbers of window shoppers. A few doors down, a locally owned boutique manages consistent foot traffic and transactions but carries its own pace.

The change is almost private: a snack swap suggested by a friend, a skincare change due to humidity, a cookware upgrade based on a neighbour’s advice. Buying has become about more than just price or convenience.

It increasingly hinges on whether the product fits into Indian lives. Rukam Capital’s Consumer Report, titled ‘Aspirations of New India: How Consumers Select, Shop, and Shape Brand Connections, ‘ showcases this subtle change. 58% of respondents prefer homegrown brands, while 56% actively choose businesses with a social or environmental purpose. Remarkably, 14% say they would pay 20 to 30% more for such products, even if cheaper options are available.

This marks a break from the past decade, when Indian consumers’ buying decisions were shaped by discounts, celebrity endorsements, and the allure of global aspiration. Instead, today’s consumer values relevance, responsibility, and trust—a trend increasingly supported by Venture Capital investments backing local and purpose-driven ventures.

From Discounts to Discernment

For decades, retail in India thrived on massive sales and familiar faces. Advertising treated consumer attention as something that could be bought, and for a while, that approach worked. However, the report shows this model is losing strength. However, the report reveals that this model is losing its effectiveness. Merely 30% of participants state that celebrity or influencer endorsements impact their decisions. Even then, this influence is primarily observed in the lifestyle and food sectors, where ongoing discoveries are being made.

This global trend is also visible. A 2024 NielsenIQ study reveals that 70% of consumers prefer brands that align with their values. In India, this alignment is as much cultural as it is ideological. Consumers are no longer swayed by flashy marketing. They want products made for Indian weather, diets, and tastes—needs that were often overlooked by imported or multinational brands.

This shift is reflected in everyday behaviour. Indians have long used products designed for different climates—sunscreens for milder sunlight, diets for colder regions, and fragrances for evening use abroad. Choices were limited, and adjustments were standard. Now, with a variety of options available, consumers are asking questions that many established brands find hard to answer.

Those answers are crucial. A consumer rarely leaves a brand because of one product failure. They stop supporting a company when interactions feel impersonal or when complaints receive generic responses instead of real solutions. Rukam’s data indicates that customer service is now the main reason for switching brands, even more than price.

The Homegrown Halo

So, why are local businesses gaining an advantage? The report identifies three key factors: trust, accessibility, and belonging. Nearly 40% of respondents believe Indian brands are more focused on their customers, and about 30% feel these brands create a sense of community. This emotional connection has real commercial effects.

External signs reinforce this trend. Reuters reported Diwali sales of ₹6.05 trillion, with 87% of consumers choosing Indian-made products.

A large portion of this money was spent on digital-first brands in the home goods, fashion, wellness, and personal care industries. The GST reform in 2025, which reduced tax rates to 5% and 18% and made pricing more transparent for smaller businesses, helped boost local brands’ sales by 20 to 25%, according to the Economic Times.

Buying local isn’t just sentimental or for show. It’s a wise choice in a crowded market where familiarity and responsiveness are increasingly valued and Venture Capital is actively fueling many of these emerging businesses, helping them scale operations and reach national audiences.

Local First, Digital Always

The success of homegrown brands can be attributed to their focus on digital shopfronts. According to the Rukam Capital report, 73% of consumers engage with brands on social media, and 67% favour companies that respond quickly. Trust is built through screens just as much as in physical stores.

The platforms driving this change aren’t limited to the major e-commerce players. Reuters estimates that over 60% of new festive-season online shoppers came from Tier 2 and Tier 3 cities. Platforms like Meesho, Blinkit, and local logistics firms have shortened the gap between small sellers and a national customer base. This has allowed early-stage brands, often supported by Venture Capital, to reach audiences that were previously out of reach.

The Economics of Trust

Trust, once seen as an intangible asset, now drives business success. The Rukam report shows that quality, transparency, and responsiveness matter more than discounts and endorsements when it comes to loyalty. Price is still relevant, but no longer the main factor.

Broader research shows the same. Deloitte’s 2025 global findings show that purpose-led firms in India grow 30% faster than pure transactional ones. It’s not just about having good values; it also shows in how the business is managed.

Customers prefer companies that are transparent in their communication, fulfil their commitments, and don’t get defensive when they make mistakes.

Respect is now more valued than simple shopping wins in daily references: They responded right away. They just fixed it. No excuses. Loyalty is moving away from the loudest brand to the one that listens best.

Purpose as a New Currency

Purpose-led buying isn’t merely a thought or philosophical stance. It reflects generational preferences based on real experience. The report finds that 72% of millennials and Gen Z prefer to shop from women-led or cause-driven brands. Northern India shows the strongest interest: 61% of respondents in that area actively seek women-led businesses, while 40% in the east focus on eco-friendly options.

Major FMCG companies are paying attention. The Mint reports that brands like Hindustan Unilever and ITC are increasing their investment in recyclable packaging and local sourcing to meet consumer expectations. Premium brands like Good Earth and Forest Essentials have integrated ethical trade and craft preservation into their core identities rather than treating them as add-ons.

But this change is not confined to just one category. Ask a mom looking for baby lotion, a diabetic with food labels, or a family replacing pots and pans: they are not paying for luxury but for the peace of mind that the product will meet their needs.

At the heart of this is a cultural change. Consumers increasingly want products that acknowledge their context instead of making them fit someone else’s needs.

The Waning Monopoly of Celebrity Influence

For years, Indian ads have been sold by using big names to gain trust, with actors pushing whitening soap, cricket players selling drinks, and singers endorsing phone brands. This was more about the number of people who saw it than about making a real connection.

Rukam’s report shows a change in this influence. 55% of consumers remember a brand because of its founder’s story, and 50% cite quality as the main reason for recommending it.

According to Business Standard, regional and digital-first brands are outperforming their national rivals in user engagement by frequently using community-based storytelling and speaking local languages. Customer recall and retention show that authenticity is now quantifiable.

The digital landscape backs this change. There are over 750 million smartphone users, and 93% of internet access is via mobile devices. Brand discovery is now an ongoing conversation.

Social media platforms like Instagram, YouTube, and WhatsApp are built on ecosystems to foster trust rather than as channels for advertising.

These are, as they might be, the companies that truly understand Indian humidity, hair types, festival days, or dietary needs. Familiarity, like fame, is not easily faked.

Women, Wellness, and the New Middle Class

​Women are making a major contribution to shaping the purpose economy as entrepreneurs and consumers.

NITI Aayog estimated that women now own almost 20% of MSMEs, with many businesses doing their best to improve wellness, sustainability, and community-driven production.

This is consistent with the Rukam report: 61% of Tier 1 consumers prefer buying from cause-driven startups, and 59% are also highly engaged in seeking out women-led ventures during festive periods. This buying is not just buying; it is participating in a larger national narrative of growth.

This sentiment matches market performance. The Hindu BusinessLine estimates that India’s health and wellness market will reach ₹2.5 trillion by 2025, growing at over 15% annually, driven by younger consumers who want tangible results from the brands they choose.

But the emergence of the rise demands challengers. They have now lost all history, and history is disembodied. They need to change their corporate identities and become more directly relevant to consumers to stay competitive.

The Purpose Premium, Applied

Consumer willingness to pay more for responsible products is not just symbolic; it is evident in their behaviour. The Rukam Capital report indicates that 76% of consumers would pay a premium for honesty and transparency, viewing ethics as a quality metric.

Companies are adjusting to this demand. The Economic Times notes that FMCG firms launching “conscious line” products with traceable supply chains, biodegradable packaging, or fair-trade inputs are earning 10 to 15% higher margins than their traditional counterparts.

Purpose is becoming less a matter of purpose, and more a method of reducing risk, and it becomes less of a differentiator. When prices are fair, consumers react differently across markets: northern markets are rewarded with women-owned businesses, southern markets enjoy familiarity, western markets favour tech-centred, homegrown brands, and eastern markets value sustainability at a fair price. Brands that pay attention to these specifics find cultural relevance; those that ignore them risk becoming irrelevant.

Investors are also changing their focus. The key question is no longer, Can this brand grow? Instead, can this brand maintain emotional credibility as it scales? Brands making the fastest progress are those that uphold their promises.

Looking Ahead: Purpose as Competitive Advantage

Purpose, which was previously found only on CSR pages, is now critical to product strategy. Startups have adopted environmental and social goals into their business models rather than marketing.

The price of investments is changing. Reuters reports $1.3 billion in impact investment in India is projected to increase, 17% annually, with institutional investors hoping for stable sustainability alongside financial gains.

For larger companies, success is being redefined. Today, growth involves not just market share but also “moral share”—the alignment of business practices with social expectations. In a crowded market, reputation has become a more fragile asset than ever.

India’s consumer landscape is moving into a new phase, one characterised less by spectacle and more by substance.

The rise of homegrown, purpose-driven brands is not an adage; it is an important shift in how Indians view value. Each purchase increasingly reflects personal identity, and each extra payment is a vote for trust over noise.

The rationale behind this change is clear: Indian innovation can be relevant, responsible, and globally competitive without relying on global intelligence.

The belief driving this change is clear: Indian innovation can be relevant, responsible, and globally competitive without following global cues.

Recognition of needs and respect are what the new consumer is buying. That, ultimately, is the true cost of trust.