Urban consumers turn value-seeker while Rural India becomes brand conscious: Report

New Delhi [India], July 17 : The way people in India are spending money is changing, especially in urban and rural areas.

According to a report by Emkay Research, urban consumers are now becoming more brand-agnostic and are focusing on value, while rural consumers are increasingly adopting brands and becoming more brand conscious.

It stated "the urban-rural play is evolving where slowing urban volumes were also seen in conjunction with shifting perceptions of packaging, pricing, and branding among urban shoppers, leading to them becoming more brand-agnostic and value seeking. Meanwhile, the rural growth story has been reversed".

The report explained that the traditional difference between urban and rural consumption is shifting. In cities, the volume of consumption is slowing down, and people are now focusing more on packaging, pricing, and convenience.

This change of mind-set is leading urban consumers to choose products that offer better value, even if it means moving away from popular brands.

On the other hand, rural consumers are showing a reverse trend. The growth of listed brands in rural regions have picked up pace in FY25, which shows that rural India is becoming more aspirational. They are willing to spend more on branded products, and brand consciousness is growing among them.

However, the report highlighted that while premium products are still in demand, the rate of premiumization has slowed down recently.

At the same time, urban consumers are becoming more focused on value, speed, and convenience. This shift is also leading to a reduction in spending on non-essential items.

Another interesting point the report made is that the line between urban and rural consumption is becoming blur. The upper end of rural society and the middle-income groups in cities now have similar buying patterns. This shows that with rising income India's economy is changing quickly, and so are buying patterns.

The report noted that because of these changes, brands and businesses should not treat urban and rural consumers as completely separate groups. Instead, they need to come up with strategies that are customized and focused on value.

Using the same approach for both urban and rural markets may lead to mistakes while investing in India's fast-changing consumption sector.

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