Localism mindset grows amongst Indian consumers

According to Mintel Reports India, the localism mindset in India has been growing, with local brands being preferred over imported ones. Senior Lifestyle Analyst at Mintel Reports India, Saptarshi Banerjee, highlights three themes related to consumers' attitudes towards local and imported goods. First, there is an upsurge in ethical and sustainable initiatives, with consumers increasingly looking at foreign brands that support local businesses and modify their products to suit local needs. Second, imported goods are perceived to be less healthy and offer less value for money compared to Indian brands, although they are considered more technologically advanced and premium. Lastly, imported brands lack differentiation and visibility in India, with almost four out of ten consumers finding it hard to differentiate between imported and Indian brands. Banerjee suggests that Indian brands should capitalize on the pandemic-driven interest in health and wellness and weave in traditional ingredients to cater to both Indian and international consumers.

Banerjee also mentions the factors that have increased the uptake of local products in India. These include the cost of living crisis worldwide, which has increased the cost of imported goods, the flurry of government initiatives such as making India, Digital India, and Startup India that promote local goods and services, and the pandemic-driven trend towards ethical and sustainable initiatives. Banerjee notes that these factors will make consumers more drawn toward brands and products that instill a sense of belonging and community among them.

Banerjee suggests that Indian brands should strive to reach out to international markets, incorporating local elements and going beyond Indian borders. Additionally, important brands need to improve their value perceptions in terms of being healthy and offering better value for money and differentiate themselves from local brands. Lastly, brands need to improve their visibility in both online and offline retail to penetrate the Indian market and attract more conscious consumers.

To know more, watch the full interview.