FMCG brands must shift focus from differentiation to salience to crack rural India: Kantar

India’s brand landscape in 2025 is defined by a widening performance gap: overall brand value grew a modest 6 percent, yet the fastest-rising brands surged by 42 percent. In a year of softened growth, consumers have become more selective, rewarding brands that deliver either immersive experiences or long-term consistency.

From Zomato and Taj riding the post-pandemic experience economy to Airtel and HDFC Bank demonstrating the power of steady customer relationships, the market is splitting between brands that simply keep pace and those that meaningfully shape consumer behaviour. In this conversation, Soumya Mohanty MD & Chief Solutions Officer-South Asia, Kantar and Graham Staplehurst (Director, Kantar BrandZ) unpack why experience-driven value, AI-enabled usability, and authenticity are emerging as the biggest drivers of brand trust and why Indian companies must rethink global narratives, rural relevance, and the balance between tech and human insight as they look toward 2026.

Edited excerpts:

India’s overall brand value grew only 6 percent, but the fastest risers grew 42 percent. What explains this widening gap and what signals are you seeing in consumer behavior that are driving this split?

On average, overall growth has slowed compared to last year. Last year we saw 19 percent growth and now it is 6 percent. Within that environment, some brands have outperformed significantly. Many of them, like Zomato, Taj and MakeMyTrip, belong to the experience economy. Consumers are out and about and actively seeking experiences, so brands in that space are benefiting.

On the other hand, brands like Airtel have done extremely well because of consistency. They have not relied on discounting and have stayed steady on their brand proposition and customer service. So there are two themes. One, consumers are seeking experiences. Two, consistency and strong consumer connections matter regardless of the sector. Even if there is deceleration in growth, some brands continue to outperform.

HDFC Bank has reclaimed the top spot. What are your thoughts on it?

TCS was number one last year, but it has slipped due to global attitudes toward technology brands and the rapid rise of AI. Indian B2B tech companies are not perceived as advanced on AI as their US and Chinese counterparts. That has impacted growth potential.

HDFC, on the other hand, has been a consistent brand. They continue to invest in consumer relationships and have delivered strong value growth. Financial services are doing well globally, and that is reflected in India. So HDFC and TCS have essentially swapped positions at the top.

MakeMyTrip’s AI powered planning tools have also contributed to its brand value growth. What does this tell us about the relationship between AI features and brand trust in India?

AI and brand trust are not at odds. As long as AI is used to enhance customer experience, usability, and interaction, consumers respond positively. If AI is used only for optimisation and efficiency without being reinvested into the customer relationship, then brands will face challenges.

For B2B tech brands with eroding equity, if they rely only on price and do not invest in R&D and innovation, they will struggle. The rule is simple. Use AI to elevate, not just to optimise.

Are Indian consumers now more responsive to future facing value propositions rather than traditional advertising?

Indian brands already use a wide mix of media. Fifty percent of spend has moved online. Influencer advertising, social commerce and marketplace ads are heavily used. Traditional media like print has actually gained credibility. It is less about traditional versus new age and more about getting the mix right.

What is the biggest blind spot Indian brands still have when trying to scale meaningfully in global markets?

Indian brands abroad get only 23 percent of their value from outside India. Chinese brands get far more. Indian brands often focus only on distribution when they go global. They do not invest enough in building the brand or telling consumers in new markets why they matter. Without that, they remain limited to South Asian diaspora communities.

The larger long term gap is the absence of Indian entertainment or cultural platform brands in the top 100. Brands like TikTok, Netflix and Meta have become global cultural engines. India has not created equivalents yet, and that is a five to ten year challenge.

In FMCG, what blind spots do marketers still have when understanding the rural consumer, especially in a stricter data environment?

FMCG brands need to refresh their understanding of the rural consumer. Most brands do not track rural markets. They assume that strong performance in urban means strong performance in rural. That is not true. For example, salience matters far more in rural markets, while differentiation matters more in urban markets.

Another blind spot is over reliance on dashboards and signals from multiple sources. Marketers are looking at numbers but not enough at human motivations. The consumer has become a set of signals rather than a person.

What major global and India specific trends stood out for you in 2025?

Creator content, influencers and the rise of AI in creative content are major global trends. AI is useful when used to enhance, but not when it is used just to cut costs.

In India, influencer credibility is high because trust in advertising has eroded. But trust will fade if influencers push brands too aggressively. India requires a careful mix of channels because growth is still available. It is not an either or market, it is an AND market.

As we move into 2026, what major trends do you foresee?

Choice fragmentation and media fragmentation will continue. AI will become more widespread in content and advertising. It will become harder for consumers to know what is real. So familiarity and trust will become important. India is both rooted and restless. Brands that capture aspiration while retaining cultural authenticity will win.