Premiumization, Omni-Channel Trends, Diversity Are Shaping Marketing in India: Kantar Report

NEW DELHI:Indian brands, both small and large, are looking to revamp their marketing strategies to align with evolving consumer behavior. A report by research firm Kantar has pointed to a shift towards localized marketing practices that target specific age groups such as Gen Z, Gen Alpha and millennials.

The transformation is aimed at addressing emerging trends, including the growing preference for premium products and online shopping, as well as the shift towards gender-sensitive advertising. Diverse consumer demographics are also prompting brands to fine-tune their marketing strategies, particularly to reach the younger generation who are redefining social media engagement and boldly expressing their values ​​around family and identity, given that India boasts of around 116 million shoppers, with Gen Z accounting for 40% of urban consumers aged 15-55.

However, the diversity within consumer groups requires nuanced marketing strategies, Kantar said. “GenZ and millennials are expected to make up almost half of India’s population by 2030. Are such large cohorts really that homogenous? However, the obsession with younger cohorts means brands are potentially ignoring an increasingly affluent and willing-to-spend older target group,” he added.

The aspirations and desires of young people from small towns and metropolitan areas vary greatly, so “addressing similar offers to them in the same way is unlikely to convince them,” Kantar says.

The report reflects the changing landscape where brands and marketers are looking for innovative ways to connect with consumers, which means moving away from traditional advertising, following the growing emphasis on e-commerce and digital marketing by major players such as Nestle India Ltd, Hindustan Unilever Ltd (HUL) and Godrej Consumer Products Ltd, which underscores the focus on product innovation.

According to Kantar, rising levels of affluence are driving growth in consumer spending, particularly on luxury goods, which is leading to increased demand in new categories such as fashionable cosmetics and skincare products.

Consumer demand for expensive items is at an all-time high, he added. “Indians have more money than ever and they want to spend it, but value consciousness remains and value is more than price. Contrary to popular belief, ‘value for money’ does not equal cheapness or cheapness, but the value for money of what the consumer is buying,” said Soumya Mohanty, Managing Director and Chief Customer Officer, Kantar.

In this dynamic market, brands are adapting their customer engagement strategies to adapt to changing behavioral patterns.

In an interview, Harman Dhillon, executive director of beauty and wellness at HUL, said that as Indians become more affluent and consumer needs diversify, a different marketing model is emerging, especially in categories like beauty and personal care, where social media has a big impact on buying behavior.

As a result, companies are spending more on digital media activations, at least in those categories. Mohanty said advertising narratives are also shifting toward more balanced gender representations and away from traditional stereotypes of men and women.

Meanwhile, according to Kantar Worldpanel, omni-channel shopping has seen significant growth in urban India, pointing to a future where connected commerce coupled with a hybrid shopping experience will become the norm, enabling consumers to browse, compare and purchase products across multiple platforms.