76% of Indians prefer local brands that offer quality: Rukam Capital study
Of the 5,000 respondents across 18 states, 76% said they value honest and authentic communication from local brands, along with innovative solutions for everyday problems
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A majority of Indians now prefer shopping from local or small businesses, according to a new study. The report by Rukam Capital, a venture capital firm backing early-stage consumer brands, found that consumers are increasingly willing to pay a premium for local brands that deliver quality and champion social causes.
Rukam Capital’s report, “Aspirations of New India – How Consumers Select, Shop, and Shape Brand Connections”, was conducted in collaboration with YouGov. Of the 5,000 respondents across 18 states, 76% said they value honest and authentic communication from local brands, along with innovative solutions for everyday problems. Additionally, 30% said startups foster a sense of community and belonging, while 40% believe startups are customer-centric, making them more appealing.
Discounts, however, continue to be a key driver of purchase decisions. The survey found that 48% of consumers browse e-commerce platforms, while 47% wait for discounts and actively research deals online. In North India, 35% of respondents said they shop exclusively from women-led businesses. Among them, 72% of millennials and Gen Z respondents strongly favor such enterprises.
During the festive season, one-third of respondents prefer products with cultural value. Healthy snacks top the shopping list, with 53% of millennials and 47% of Gen Z planning to buy them this season. The shift is even sharper in sweets, with 73% of younger consumers opting for sugar-free alternatives over traditional mithai.
“The Indian consumer is no longer a passive participant in shaping trends. The market is evolving, driven by affordability, aspiration, and digital sophistication. India is telling us that it’s not just about what a brand sells, but how it makes them feel connected, understood, and valued. This shift is forcing even the most traditional categories to reinvent themselves — through healthier alternatives, transparent communication, or community-driven engagement. For founders, it’s a reminder that building loyalty in India goes far beyond discounts; it’s about creating meaning in everyday consumption,” said Archana Jahagirdar, Founder and Managing Partner, Rukam Capital.
