In the vast landscape of India’s consumer market, the diversity across Urban 1, Urban 2, and Rural segments paints a varied tapestry of consumer behaviour, preferences, and brand perceptions. We have delved into the intricate world of brand and consumer connect, offering insights into the nuanced choices and distinctive preferences that characterize these diverse demographics.

It is an extraordinary moment to witness the ascent of eCommerce brands demonstrating a strong consumer connection among the bustling urban centres. The emergence of Amazon over food brands speaks volumes, relevant to a wide spectrum. The digitisation wave and the internet era have stirred up the flames of eCommerce even beyond metros and Tier 1 cities. The online marketplace giants Amazon and Flipkart are redrafting their game plan, clutching a major chunk of the proliferating online retail industry, with the focus now shifting to clock revenues from beyond metros and Tier 1 cities. While Amazon was ranked 3rd and Flipkart 7th in the previous year, the jump to 1st and 5th is reflective of the growing eCommerce landscape and consumer manifestations of convenience, transparency, and personalisation in both Urban 1 and Urban 2.

The fresh addition of brands such as Decathlon and Nike among the Top in Urban 1 mirrors consumers’ drive for fitness. The rising emphasis on health has led people of all ages to seek technical and high-performance footwear and a further escalating desire for athleisure clothing.

Brands like Samsung and Apple have come up the ladder demonstrating how the premium is now a mass thing. From soaps to scotch to smartphones, the demand for premium products among Indian consumers is soaring high.

Among all the brands in Urban 1 and Urban 2, WhatsApp which was ranked 12th last year rose to 3rd and Google which was 28th rose to 19th number. Other brands like Apple also climbed up the ladder. There is an extraordinary technological phenomenon underlining consumer choices and the rapid ascent of these brands in India signifies the disruptive power of technology and evolving consumer preferences. The consumer market in India is experiencing a notable transformation propelled by changing consumer preferences and an increasing interest in innovative products.

The Surpassing expectations, telecom brands, when compared to previous years, have seen a decline. They haven’t disappeared from the list or consumers’ essential needs basket but have transitioned into a routine category. While back in the day consumers talked and discussed the ins and outs of the telecom brands, the narrative has now evolved. While their presence remains indispensable, they now occupy a less prominent role in conversations.

The other brands that have gradually dwindled in a year are the Swiggys and Zomatos of the world. The key point is that the food tech category which witnessed a great pivot is now experiencing a new shift away from the aggregators. Consumers anticipate a return to restaurants, and there is a noticeable trend of individuals reverting to on-premises dining. This suggests that consumer behavior hasn’t undergone a permanent change. The spotlight from these big boys has shifted towards the quick commerce brands that all people are talking about.

While the cab aggregators began with a bang in India, ride-hailing started to witness a decline in 2022 and has completely washed off from the Brand Xcel’s top 50. New entrants such as Rapido, Blu Smart, Drife, and Shoffr are gaining momentum by presenting attractive packages for drivers, offering competitive pricing, providing more user-friendly booking options, and implementing advanced features like AI and blockchainbased business models.

Having withstood the test of time, brands like Maggi, Facebook, Colgate, Vivo, PhonePe, Britannia Lifebuoys etc have maintained their consistency over the years, being part of consumers’ everyday baskets. Other brands like Dettol, Clinic Plus, Godrej and Lifebuoy have though maintained their consistency but have witnessed a decline. At the same time finance brands have gained prominence and digital payments as a category has grown in the metros.

The mainstream and traditional brands have faded in the overall urban space, and the finance and digital payments brands have come up and gained prominence. Brands like Dabur and Parle have exhibited relevance in tier 2 and small towns.

In Urban 2, a fusion of modern aspirations and traditional values has shaped brand preferences. Here, consumers exhibit a unique blend of evolving tastes, affordability considerations, and a balanced approach to traditional and modern products/services. The rankings reflect an evolving consumer mindset and the emergence of brands catering to this dynamic segment.

The consumer landscape shifted noticeably in India in 2023 as inflation, agricultural distress, downtrading, aspirational buying and premiumisation defined the consumption patterns. Urban markets have been the drivers of growth with modern trade and ecommerce leading the way as consumers at the lower end hesitated to spend while the affluent splurged on premium goods.

The pulse of India’s economic engine beats not only in its bustling cities but also in the serene heartlands. The vast expanse of Rural India brings forth consumer behaviour rooted in tradition, community ties, and pragmatic choices. Brands gaining prominence here strike a chord by addressing local needs, offering value, and aligning with the cultural fabric while balancing affordability and quality.

As small towns rise on India’s consumption map, companies can expect more consumers shopping online especially for premium products since the hinterland has been underserved by traditional retail in categories such as apparel, electronics and jewellery. While brands under the shade of technology dominated the urban domains, personal care and traditional brands still have a hold in the rural space.

An increase in consumer spending on discretionary categories such as personal care and home care products signifies that rural consumers are beginning to spend beyond essential categories.

Today, companies are no longer treating the rural market as a clearance ground for their lower-end products but are realising the need to focus on the unique requirements of rural consumers.

These consumers, once predominantly mirroring their urban counterparts, have now come into their own. The shift from emulation to individuality signifies monumental change with lingering implications for the brands. The pandemic has ushered in the health dynamics event for rural consumers. It is evident from their choice of Horlicks gaining prominence over soft drinks like Pepsi and Coke going down the ladder.

Though brands like Pepsi and Coca-Cola have made it to the Top 50 across the demographic, these brands have over time lost appeal owing to the consumer’s detachment from sugar. Changing food behaviour and consciousness towards health has led these brands to rethink their strategy. As more consumers desire less sugar in beverages, many carbonated soft drinks (CSD) producers are diversifying product offerings, including low- and zero-calorie products, as well as flavoured options to help spur growth within the category.

Brands of today are not only expanding their reach but are also increasingly attuned to the voices and concerns of their customers. This heightened sensitivity extends beyond mere product preferences to encompass critical environmental considerations. Recognizing the growing consumer awareness about sustainability and the ecological impact of products, brands across various segments are proactively adopting greener practices and eco-friendly initiatives.

Whether it’s through sustainable sourcing, reducing carbon footprints, or introducing eco-conscious product lines, brands are making concerted efforts to align with the environmental values of their consumers. By integrating environmentally friendly practices into their business models, brands are contributing to a more sustainable future while also building stronger, more meaningful connections with their consumers.

This evolving brand ethos signifies a new era of consumer-brand relationships, where mutual respect for environmental health is as important as the quality and appeal of products. In essence, the journey of brands today is not just about market expansion but also about listening, responding, and contributing positively to the global environmental narrative.