Hyderabad chooses Local Over Global and shows strongest preference for purpose-driven brands: Rukam Capital’s ‘Aspiration of New India’ report reveals

A renewed sense of pride in homegrown brands is shaping the way consumers in cities and towns, especially in Hyderabad when making purchase decisions. Over half of respondents say they prefer shopping from homegrown and small business brands, citing accessibility, relatable stories, and authentic value as key reasons for their loyalty. Rukam Capital, a venture capital firm backing early-stage consumer brands, unveils this in a comprehensive study mapping the evolving behavior, preferences, and purchase drivers of Indian shoppers.

India’s consumer economy is poised to become the second largest by 2030. Rukam Capital’s report- “Aspirations of New India” aims to showcase the evolving trends in the market that in turn helps brands, startups, and investors to adapt to the evolving mindset of Indian consumers. The research captures the spirit of an India that is young, aspirational, and global in outlook yet deeply conscious of sustainability, authenticity, and community.  It further highlights that consumers have begun expressing clear willingness to pay a premium for local brands that excel in quality and champion social causes, further underscoring the appeal of startups driving community upliftment.

Commenting on the insights, Archana Jahagirdar, Founder and Managing Partner, Rukam Capital, said, “The Indian consumers are no longer passive participants in shaping trends, the market is evolving and is being pillared through affordability, aspirations and a 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.  

“We are delighted to see that consumers from Hyderabad are supporting brands that champion local causes. Half of the city’s consumers are opting for biodegradable materials for their pooja, and artisan products continue to hold a strong position in their buying choices.” added Archana Jahagirdar.

Key takeaways from the report-‘Aspirations of New India: How Consumers Select, Shop, and Shape Brand Connections’:

Hyderabad specific insights:

• Lower uptake across most modern categories, but puja essentials from biodegradable materials lead (50%, highest across cities) reflecting religious-practical priorities.
• Artisan (43%) and social cause (43%) support emerge as niche buying cues.
• Respondents from Hyderabad also led the category of purchasing products that can be rented for a few days during the festive season at 37%
• 62% of respondents from Hyderabad would like to buy from brands that support a local cause with 56% respondents shopping from products mainly from homegrown brands and 58% from a local/small business
• UPI adoption is mid-level (36%), showing digital but stable behavior.
• Distinctive spike in interest around founder stories (38%), revealing trust in leadership.

Overall Insights

From local to loved - homegrown brands are winning hearts of Indian consumers 

• 58% of the survey respondents said that they like to shop for products mainly from local or small businesses.
• Interestingly, 76% of respondents said that they appreciate honest/ authentic communication by local brands along with innovative solutions for everyday problems.
• 30% said that the startups build a community and promote the feeling of belonging. 40% respondents believe that startups are customer centric which makes them appealing.
• Sustainability is shaping decisions, with 76% actively choosing eco-friendly brands within the health and wellness space.

Digital, dynamic and dialect are driving media habits of Indian consumers 

• The media consumption habits of the Indian consumers are being guided by mobile-first access, regional language content and rising internet adoption.
• 73% of the people engage with brands on social media while 67% prefer brands that are very responsive on social media.

Indian consumers embrace heritage and health during festivities 

• During the festive season, one third of respondents buy products that have cultural value.
• India is also witnessing a renewed sense of interest in wellness and health first options. Healthy snacks are topping shopping lists, with 53% of Millennials and 47% of Gen Z planning to buy them this season. The shift is even clearer with sweets, 73% of younger consumers now prefer sugar-free options over traditional mithai. What was once an indulgent exception is now being redefined as a celebration of mindful living.
• When it comes to festive shopping, Tier 1 leads with 61% tilt toward homegrown brands and 59% cause-driven shopping, reflecting cultural consciousness.

Social media responsiveness wins loyalty – 67% prefer brands that actively engage online.

A new influence is also taking center stage - in-game advertisement. That was once pure entertainment has now become a powerful driver of shopping behavior

The report also highlights the categories driving growth today.  Health and wellness, kitchen appliances, food and beverages, fashion accessories, and pet care are emerging as strong segments. Across categories, ease of availability, word of mouth, and strong customer service continue to be the top purchase drivers.

The survey was conducted in collaboration with YouGov, with over 5000 respondents residing in 18 states to map the evolving consumer landscape of the country, representing both urban and semi-urban population.