Here’s a deep dive into the forces set to redefine brand strategies
New Delhi: As India stands at the crossroads of significant socio-economic shifts and evolving consumer behaviours, the future of marketing demands a fresh perspective. Insights from the recently released ‘India at Crossroads’ report by Kantar, a marketing and data analytics platform, highlight the emerging trends shaping India’s marketing landscape in 2025.
Here’s a deep dive into the forces set to redefine brand strategies
India’s Socio-Economic shifts
Post-COVID, India’s socio-economic landscape has altered significantly. The urban middle class, once the cornerstone of the consumer goods market, has become the smallest cohort. Real incomes have been under pressure leading to stagnating consumer confidence. Consumption in urban areas has slowed more sharply than in rural regions.
Positive Rural Sentiment
In contrast to urban, the rural market is buoyant and is increasing consumption, bolstered by good monsoons in 2024 and diverse income sources. There is a surge in spending on small indulgences such as soft drinks and convenience products. This is fuelled by growth in the adoption of digital services—both, payments and openness to online commerce. According to Kantar’s Rural Barometer 2024, Digital Payments have grown from 38% in Dec 22 to 43% in Jul 24, E-commerce Delivery from 14% to 23% and Gaming Platforms from 4% to 12%.
Aspiration driving premiumization
India is in a demographic and cultural sweet spot. Smaller families, women practising self-love, and Gen Z establishing their own identity are all driving aspirations. But the mix of aspiration is changing and so are the entry points in the aspirational ladder. What shapes aspirational brands is their perceived “difference”. Driving “difference” at a brand level will be critical.
Media Consumption
Indian consumers continue to split their time between traditional and digital media, but levels and quality of attention vary by channel. The different attention characteristics of media channels and their reach, influence the role of media channels in the purchase funnel. It is a trifecta of Incremental Reach, Attention and Expected Brand Outcome that has implications not just for the media mix, but also for communication and creative developments. Going forward, media planning must begin with consumers and their media consumption habits and preferences.
Rethinking Gen Z
While Gen Z remains a key target consumer segment for many brands, this demographic is highly diverse, and their motivations cannot be fully understood through simplistic or algorithm-driven personalization. Successful strategies must focus on understanding the intersectionality of Gen Z’s identities and motivations to craft relevant experiences that truly resonate.
The report also adds that to succeed in 2025, marketers must centre brand narratives on culture and people, creating meaningful differences that align with evolving consumer identities. A dynamic media planning approach is essential, balancing campaign reach with cost efficiency and tailoring strategies to the distinct attention characteristics of various media channels.
Marketers should stop treating Gen Z as a monolithic cohort, instead uncovering the nuances of their motivations to craft relevant experiences. Exploring intersections of consumer identities will reveal deep motivations and growth opportunities while leveraging democratized access through digital platforms will help develop relatable stories that resonate across diverse segments.
