Rukam Capital Report Reveals Rising Consumer Preference for Homegrown Brands in India

Indian shoppers are increasingly gravitating towards homegrown and small business brands, driven by accessibility, authentic storytelling, and value-led connections, according to a new study released by Rukam Capital. The report, titled “Aspirations of New India: How Consumers Select, Shop, and Shape Brand Connections,” surveyed over 5,000 respondents across 18 states to capture shifting consumer behaviors and motivations.

The study highlights that 58% of consumers prefer purchasing from local or small businesses, with 76% valuing honest communication and innovative solutions. Community-driven engagement is also shaping choices—30% of respondents feel startups foster belonging, while 40% believe they are more customer-centric.

Sustainability emerged as a defining factor, with three out of four consumers consciously opting for eco-friendly brands. Interestingly, 35% of shoppers in North India reported favoring women-led businesses, with strong preference among millennials and Gen Z.

On media habits, the report found that India’s digital-first consumers rely on mobile access, regional content, and social media engagement. 73% interact with brands online, while 67% prefer those that are highly responsive on social platforms. The study also underscored UPI’s dominance in payments, particularly in Tier 3 towns, while credit adoption remains stronger in metros.

Celebrity and influencer endorsements continue to sway certain categories. Half of pet care shoppers and 43% of kitchen appliance buyers discovered brands through such endorsements. However, fashion remains less influenced, with only 3 in 10 respondents citing celebrity-driven purchases.

Festive shopping trends reveal a blend of tradition and wellness. While one-third of shoppers buy products with cultural value, younger consumers are increasingly leaning toward sugar-free sweets and healthy snacks, reflecting a shift toward mindful celebrations.

The study also points to emerging growth categories including health & wellness, kitchen appliances, food & beverages, pet care, and fashion accessories. Innovative discovery channels such as in-game advertisements and virtual try-ons are beginning to reshape purchase journeys, particularly among Gen Z consumers.

Commenting on the findings, Archana Jahagirdar, Founder and Managing Partner of Rukam Capital, said:

“Indian consumers are no longer passive participants. They are demanding affordability, authenticity, and meaningful engagement. Building loyalty now goes beyond discounts—it’s about creating value, trust, and community.”

As India’s consumer economy marches toward becoming the second largest globally by 2030, the report underscores the need for brands, startups, and investors to adapt quickly to a market where cultural pride, digital engagement, and sustainability are increasingly central to consumer decision-making.

By: Arushi Agarwal

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Indian Startup Times

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