How will the Premiumization, Omnichannel Trends, and Diversity Shape Marketing in India?

The Indian market has witnessed a shift towards e-commerce and digital marketing among large companies, reflecting the diverse preferences of a youthful demographic, and value-conscious consumer base. Both small and large Indian brands are revamping their marketing strategies to match consumers' evolving behaviour.

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This growth seeks to address growing trends, including a growing preference for premium products and online shopping and a shift towards gender-inclusive advertising. The diverse consumer demographics are driving brands to fine-tune their marketing strategies, particularly to resonate with the younger generation, who are redefining social media engagement and boldly expressing their values on family and identity

India boasts around 116 million shoppers, with Gen Z accounting for 40% of urban consumers aged 15-55 years. The aspirations and desires of the youth from small towns and metropolitan areas vary significantly, making it necessary for subtle marketing strategies.

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The rising wealth in India is fueling higher consumer spending, especially on luxury items, leading to growing demand in emerging categories such as trending cosmetics and skincare products. Consumer demand for big-ticket items is at an all-time high, with Indians having more money than ever and the desire to spend it.

Contrary to popular perception, "value for money" is not equal to inexpensive or cheap, but about the price worthiness of what the consumer buys. Companies are adjusting their consumer engagement strategies to align with evolving consumer engagement patterns and spending more on digital media activations, particularly for categories such as beauty and personal care, where social media is driving great influence on shopper behaviour.

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Omnichannel shopping has seen a significant increase in urban India, indicating a future where connected commerce, along with a hybrid shopping experience, will become the norm. This trend allows consumers to explore, compare, and purchase products across multiple platforms.