The 'Death of the Diva' is here: How GST cuts are fueling the rise of micro-influencers
Smaller creators offer cost-efficient reach and regional depth. With RMG off the table, cleaner and cheaper inventory on some platforms makes scaled micro-led plays even more attractive, according to experts.
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India’s influencer marketing industry is gearing up for a busier festive cycle after the new GST reset. The reform is expected to lift consumer sentiment, trigger price drops, and push brands to scale up campaigns.
Rohit Aggarwal, Co-founder and CEO, Alpha Zegus says the signs are already visible in FMCG, which is talking about 8–10% price reductions on select SKUs and a 2–3% volume increase. Large-ticket electronics like televisions above 32 inches, ACs and dishwashers will see effective price drops of around 8–9% after the cuts. “Net-net, I peg influencer budgets ~10–15% higher vs last festive, led by categories passing through savings or chasing share gains,” he explains.
Categories leaning positive include FMCG and personal care, electronics, durables, and auto, with e-commerce and quick commerce likely to accelerate into the festive window. “These are the teams calling for bigger creator rosters, regional language pushes, and high-frequency short-form.”
On the expected shift in influencer collaborations, Rohit anticipates a barbell strategy. “We will see a few macro/mega creators lead big launches (new TVs, festive editions), but the volume of spend should skew to micro & nano creators for cost-efficient reach and regional depth. Also, with RMG off the table, inventory is structurally cheaper/cleaner on some platforms, making scaled micro plays even more attractive.” That shift will determine which creators benefit most. “Micro and mid-tier benefit most—expect them to capture 60–70% of incremental budgets. They deliver lower CPVs/CPEs, sharper regional segmentation, and faster creative turnaround—exactly what brands need in a price-cut + promo-heavy festive. Macro/mega still matter for tent-pole moments, but the day-to-day lift will be micro-led.”
“These are the teams calling for bigger creator rosters, regional language pushes, and high-frequency short-form.”
Shudeep Majumdar, Chief Executive Officer (CEO) & Co-Founder, Zefmo believes the overall lift in spending will be steady — about 10–12% higher than last year but the bigger story is the shift in influencer mix. “It’s about value and authenticity. Micro-influencers feel more like trusted friends than paid ads. Not everyone can afford 2–3 crore star power. Authentic storytelling is the key,” he says.
Calling it the “death of the diva,” Majumdar predicts brands will increasingly move away from mega stars to micro and nano influencers, a trend already visible in D2C and regional campaigns targeting Tier-2 and Tier-3 cities.
That balance between scale and efficiency is echoed by Ambika Sharma, Founder and Chief Strategist at Pulp Strategy. She notes that while campaign budgets will expand, brands remain cautious about ROI. “Brands will balance big-ticket collaborations with a stronger base of micro and nano influencers,” she says. “When there is more money in the system, especially during the festive cycle, it tends to lift all segments of advertising. Influencer marketing will ride that wave.” She, too, expects a 10–12% increase compared to last year, driven more by broader campaign expansions than isolated allocations.
Electronics and green-tech players are also emerging as aggressive adopters. Kushal Bhuva, Associate Vice President – Founders Office, Influencer Marketing and Video, points out that categories like appliances, EV chargers and solar products are leaning on influencers as their price brackets become more attractive post-GST. “Mega influencers are likely to front flagship launches, but micro and nano creators stand to gain the most, translating affordability into relatable everyday stories that move purchase decisions,” he says. In his view, the reform is set to broaden participation, bring more categories into influencer marketing, and create a healthier ecosystem where growth is shared more evenly.
Krishna Desai, Chief Product Officer and Data Scientist at Animeta, adds a note of caution. He points out that reduced pricing alone could make some brands pull back on promotions, relying on organic demand. “On the other hand, given that this is happening right in the festive season, some brands may think on doubling down on promotions to get an outsized market share,” he says. To achieve that, an additional mix of medium and smaller creators could prove most effective, helping brands push consumers from awareness to mid-funnel conversion.
