Introduction 

Indian consumer behaviour is rapidly evolving, shaped by affluence, digital convenience, and a shift towards more conscious and personalised shopping experiences. From the rising demand for branded and luxury products across cities to the growing influence of online shopping, these trends are transforming how Indians spend. 

Sustainability and customisation are becoming key drivers, especially among younger generations, who also prioritise experiences over material possessions. The surge in e-commerce, particularly during festive seasons, highlights the growing preference for digital platforms and seamless payment options like UPI. This article explores these six key trends of Indian consumer behaviour and their impact on the Indian market. Let's get started! 

We are a 'Low-Code' platform that helps you identify customer behaviour through our advanced data analytics and insights. By tracking user interactions and preferences, we offer personalised recommendations, real-time feedback, and behavioural patterns. This empowers you to better understand your audience, optimise marketing strategies, and drive higher engagement and conversions.

Now, let’s see the top six Indian consumer behaviour and their analysis. 

1. Affluence and Changing Spending Patterns

Affluence is reshaping Indian consumer behaviour, with growing disposable incomes significantly influencing how people, particularly younger generations, spend. Gen Z and millennials are driving a shift toward branded and luxury products, a trend that is spreading from metro cities to smaller towns, making it a national phenomenon.

• Shift towards branded products: 

Indian youth, particularly in urban areas, are increasingly leaning towards well-known global brands. For instance, brands like Nike, Adidas, and Zara have become highly desirable due to their premium quality and brand value. Gen Z and millennials prefer these brands not only for status but also for their perceived quality and style. This shift reflects a desire for lifestyle upgrades.

• Rising luxury purchases: 

The increasing presence of luxury items, such as iPhones, Rolex watches, and high-end cars like BMWs, shows a growing appetite for high-value goods. For many consumers, owning these items has become a status symbol, reflecting their financial success and aspirations.

• Expansion beyond metros: 

While branded and luxury products were once limited to metro cities, this trend has extended to Tier II and Tier III cities like Indore, Jaipur, and Lucknow. With easier access to online shopping and better incomes, consumers in smaller cities are now embracing these brands, making affluence a nationwide trend in India.

Also read: Understanding 4 Types Of Consumer Buying Behaviour Patterns

2. Online Shopping

Online shopping in India has surged as consumers increasingly prefer the convenience and flexibility of digital platforms. From groceries to luxury items, the availability of a vast range of products online, combined with easy payment options, has made it a go-to choice for millions.

• Rise of online shopping: 

More Indians are choosing online shopping for its ease and time-saving nature. Platforms like Amazon, Flipkart, and BigBasket allow consumers to shop at their convenience, eliminating the need for physical store visits. This is particularly beneficial for busy professionals and those in remote locations.

• UPI payments: 

The Unified Payment Interface (UPI) has revolutionized online payments in India by making transactions seamless and secure. Whether purchasing on Amazon or paying for food delivery on Swiggy, UPI enables instant, hassle-free payments, boosting customer confidence in digital shopping.

• Wide product range: 

Online platforms offer an extensive selection of products across categories like electronics, fashion, and groceries. Consumers can compare prices, check reviews, and get discounts, making online shopping more appealing. For instance, platforms like Nykaa offer a wide variety of beauty products that are not easily found in local stores.

• Benefits for small businesses: 

E-commerce platforms provide small businesses the opportunity to reach a wider audience. Apps like Meesho enable local sellers to sell their products online, helping them grow their customer base without the need for a physical store. This has empowered many small entrepreneurs across India.

Also read: 6 Major Factors Influencing Consumer Buying Behaviour

3. Sustainable and Informed Shopping

Sustainable and informed shopping has become a growing trend among Indian consumers, particularly among the environmentally conscious and younger generations. People are now more aware of the environmental and ethical impact of their purchases, prompting a shift towards sustainable products and brands that align with their values.

• Privileged consumers avoiding non-sustainable products: 

A significant number of affluent and educated consumers are steering clear of non-sustainable products. Brands like Tata’s 'Wild Stone Earth' and Forest Essentials are gaining popularity for their eco-friendly packaging and cruelty-free production methods. This trend reflects a collective move towards a more environmentally responsible lifestyle.

• Extensive research before purchases: 

Consumers, especially millennials and Gen Z, are taking the time to research products thoroughly before buying. Online reviews, sustainability certifications, and ethical practices play a major role in purchase decisions. For instance, brands like Fabindia, known for its sustainable clothing, attract buyers who value transparency and ethics.

• Rising consciousness towards brand ethics and product reviews: 

Indian consumers are more conscious about supporting ethical brands. Platforms like Goodmylk, which offers plant-based dairy alternatives, have benefited from this growing awareness. Consumers are increasingly factoring in company values, employee treatment, and community initiatives when choosing where to spend their money.

Also read: How To Track and Analyze User Behavior? Complete Guide

4. Customised Products

Customisation has become a key trend in Indian consumer behaviour as people increasingly seek products that match their unique preferences. From skincare to travel, personalised offerings are gaining popularity across industries.

• Increasing demand for products tailored to individual preferences: 

Consumers are now looking for products that meet their specific needs. For instance, skincare brands like Bare Anatomy offer personalised hair and skin products based on individual concerns.

• Struggles of large brands to provide customisation: 

Large, traditional brands often face challenges in offering customisation due to mass production models. This opens the door for smaller, more agile brands to meet personalised demands.

• Growth of smaller brands offering personalised quality products: 

Smaller brands like Arata and SkinKraft have capitalised on the growing demand for personalised products, offering consumers tailored solutions that larger companies struggle to provide.

• Examples include personalised skincare and custom travel packages:

Personalised skincare products like Forest Essentials' customised offerings and custom travel experiences from platforms like Pickyourtrail show how personalisation is becoming a dominant trend across various industries in India.

Also read: What is Behavioral Analytics? - Definitions, Types, and Examples

5. Experience over Materialistic Possession

Indian consumers, especially the younger generation, are shifting from material possessions to valuing meaningful experiences. This trend reflects a growing preference for renting and embracing rich, fulfilling life experiences over ownership.

• Younger generation’s preference for renting over owning: 

Millennials and Gen Z are opting to rent rather than buy. Platforms like Furlenco and Rentomojo offer furniture and appliances on rent, catering to this shift in lifestyle.

• Shift from material possessions to valuing experiences: 

The focus has moved from owning luxury items to spending on experiences. Travel, adventure, and wellness activities, such as those offered by Airbnb and OYO, are gaining popularity.

• Brands adapting to offer richer, more fulfilling experiences: 

Companies are offering more experiential services, like Zomato’s curated dining experiences or MakeMyTrip’s experiential travel packages, to cater to this growing demand for experience-driven consumption over material goods.

Also read: What is Behavioral Data? Importance and Types

6. Festive Shopping in India

Festive shopping in India is a highly anticipated time when consumers make significant purchases. From October to December, major festivals and sales events drive a surge in spending, especially on online platforms.

• Busiest Shopping Months: October to December: 

These months witness the highest shopping activity as Indians prepare for festivals like Diwali and Christmas, making it the peak season for retailers and e-commerce platforms.

• Major Festivals: Diwali, Dussehra, Navratri, Dhanteras, Christmas: 

These festivals fuel a shopping frenzy as consumers purchase gifts, home decor, and new clothes to celebrate. Diwali, in particular, triggers major buying sprees across the country.

• Preference for online shopping during festival season: 

Consumers are increasingly turning to online platforms for festive shopping due to convenience and discounts. E-commerce sites like Amazon and Flipkart see massive traffic spikes during this period.

• E-commerce sales events: Flipkart’s Big Billion Days, Amazon Great Indian Festival Sale: 

These sales events coincide with festivals and offer deep discounts on electronics, fashion, and more, attracting millions of shoppers looking for festive deals.

• Popular shopping categories: electronics, apparel, footwear: 

During the festive season, categories like electronics (smartphones, TVs), apparel, and footwear see high demand, with brands offering special festive collections and offers to lure shoppers.

Conclusion

Indian consumer behaviour is evolving rapidly, driven by digital advancements, a focus on sustainability, and the demand for personalised experiences. These changes reflect a shift towards more informed and conscious purchasing decisions. As a 'Low Code' platform, we can help you stay ahead of these trends with our data-driven insights and personalised recommendations. 

By analysing customer behaviour patterns, Nudge enables you to adapt quickly, offering tailored solutions that resonate with the evolving preferences of Indian consumers. From understanding spending habits to enhancing customer engagement, our features empower you to stay competitive in a dynamic market. So, book a demo with us today!