Consumers favour homegrown startups as trust, and convenience drive festive purchases

India’s festive season, which began in late September, is seeing stronger consumer preference for homegrown startups and purpose-driven brands, according to Rukam Capital’s Aspirations of New India report.

About 58% of respondents said they prefer shopping from local or small businesses, while 40% associated startups with customer centricity and social impact. Nearly 14% of consumers said they were willing to pay a 20–30% premium for local brands. Authenticity, product quality, and reliability have emerged as stronger purchase drivers than celebrity endorsements or discounts.

Gen Z and millennials are leading this shift. Backed by rising purchasing power and digital familiarity, these groups show higher affinity for health and wellness, pet care, and kitchen appliances, categories that are largely online-first. Tier I consumers showed a 61% tilt toward homegrown brands and 59% toward cause-driven shopping.

India, largely considered a value-driven market, is also a growing set of customers, about 14% who are willing to shell out a 20-30% premium for local brands.

The report, based on an online survey of 5000 consumers across 18 states, showed a keen preference for convenience-changing shopping experience, everything from marketplaces to payment solutions. About 50% of respondents used quick-commerce apps regularly.

About 71% respondents used UPI for payments, with two in five shoppers relying on its speed and convenience. The popularity is not limited to metros, with tier 2 consumers recording the highest UPI usage at about 42%.