Indian consumers show strong preference for local and eco-friendly brands, study finds

A majority of Indian consumers prefer to shop from homegrown and small business brands, citing relatability, authentic communication and innovative solutions as the main drivers of loyalty, according to Rukam Capital’s report Aspirations of New India: How Consumers Select, Shop, and Shape Brand Connections.

The survey, conducted with YouGov across 18 states and involving 5,000 respondents, revealed that 58% of Indians choose local brands, while 76% value eco-friendly products. Nearly half of respondents said a strong founder or brand story made a label memorable, with consistent quality and raw material use also ranking highly as factors influencing consumer perception.

The study highlighted a clear urban–rural divide in payment preferences. Tier-1 cities balanced Unified Payments Interface (UPI) transactions (36%) with credit card use (24%), largely driven by rewards and cashback offers. In contrast, tier-3 cities reported minimal reliance on cards (16%) but showed the highest UPI usage (42%).

Patterns of product discovery also varied. Pet care was identified as the category most influenced by celebrity endorsements (50%), while fashion purchases were far less reliant on such promotion, with only 30% of decisions being celebrity-driven.