India’s festive season, traditionally marked by indulgence and grandeur, is undergoing a striking transformation. A new study titled 'Aspirations of New India: How Consumers Select, Shop, and Shape Brand Connections' by early-stage venture capital firm Rukam Capital reveals that consumer behaviour is now guided by wellness, authenticity, and purpose rather than impulse and convention.
The study, conducted in collaboration with YouGov, draws insights from over 5,000 respondents across 18 states. It highlights how Indian consumers are redefining the festive experience through conscious choices and stronger emotional connections with brands. India’s festive retail economy is projected to grow by 23 per cent and reach a valuation between USD 125–150 billion in 2025, aided by the GST 2.0 reforms and the rising influence of smaller towns.
Commenting on the findings, Archana Jahagirdar, Founder and Managing Partner at Rukam Capital, said, “Indian consumers are no longer passive participants in shaping trends. The market is evolving and is being pillared through affordability, aspirations, and digital sophistication. India is telling us that it is 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 beyond just seasonal triggers, whether that’s through healthier alternatives, transparent communication, or community-driven engagement. For founders, it’s a reminder that building loyalty in India now goes far beyond discounts; it’s about creating meaning in everyday consumption.”
The report identifies three key trends shaping India’s festive consumption landscape. The first is the rise of homegrown brands, with festive shopping emerging as a statement of national and community pride. Over half of Indian consumers now prefer local or small business brands, drawn to their authenticity and relatable stories. In Tier-I cities, 61 per cent of shoppers consciously opt for Indian brands, while 59 per cent align their festive spending with social or environmental causes, signalling a shift towards conscious capitalism. Additionally, 43 per cent of respondents said they enjoy discovering and purchasing from new startups during the festive period.
The second trend is the wellness revolution, reflecting how celebration now blends with self-care. More than half of Millennials (53 per cent) and 47 per cent of Gen Z plan to purchase healthy snacks this season, moving away from traditional festive indulgence. An impressive 73 per cent of younger consumers now prefer sugar-free or substitute-based sweets, redefining what festive treats mean today. Around one in three respondents also expressed a preference for products that integrate heritage with health, reflecting the rise of traditional yet guilt-free festive offerings.
The third defining theme is digital dominance, with India’s digital ecosystem fuelling the festive shopping rush. Nearly two in five shoppers rely on UPI for their purchases, making it the most preferred payment method this year, followed by credit and debit cards. Interestingly, Tier-III cities recorded the highest UPI usage at 42 per cent, while Tier-I consumers balanced UPI (36 per cent) and credit card payments (24 per cent) to maximise rewards and cashback benefits.
Rukam Capital, an early-stage venture capital firm, continues to focus on investing in purpose-driven consumer brands that solve large-scale challenges. With evolving consumer aspirations, the firm believes India’s next wave of successful startups will be those that combine purpose, innovation, and deep cultural resonance. |
