Categories: Business

India’s Spending Shake-Up: How Urban And Rural Buyers Are Changing The Game

India’s spending patterns are evolving—urban consumers prioritize value over brands, while rural buyers embrace brand consciousness. Businesses must customize strategies to match this changing consumption landscape.

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Published by Aishwarya Samant
Published: July 17, 2025 15:31:25 IST

Have you noticed how people in India are changing the way they spend their money? According to a report by Emkay Research, there’s a clear shift happening—especially between urban and rural areas. Urban shoppers are now hunting for value and don’t stick to brands as much as before. On the flip side, rural consumers are becoming more brand conscious and aspirational. The report says, “The urban-rural play is evolving where slowing urban volumes were also seen in conjunction with shifting perceptions of packaging, pricing, and branding among urban shoppers, leading to them becoming more brand-agnostic and value seeking. Meanwhile, the rural growth story has been reversed.” So, while city folks slow down on buying volumes and look closer at packaging, pricing, and convenience, rural buyers are eagerly embracing brands. Have you changed your shopping habits too?

Urban vs Rural Consumer Trends In India

Aspect Urban Consumers Rural Consumers
Brand Loyalty Becoming brand-agnostic Increasing brand consciousness
Spending Focus Value, packaging, pricing, convenience More willing to spend on branded products
Consumption Volume Slowing down Growing, especially for listed brands
Premiumization Trend Slowed recently Slowed recently
Buying Pattern Overlap Middle-income urban & upper rural groups align

Urban Buyers Choose Value, Rural Buyers Embrace Brands

  • Urban consumers prioritize value over brand loyalty: They now opt for products offering better value, even if it means switching from popular brands.
  • Focus on speed and convenience: Urban shoppers seek quick, hassle-free purchases that fit their busy lifestyles.
  • Reduced spending on non-essential items: Many urban buyers are cutting back on extras, focusing more on necessities.
  • Rural consumers increase brand adoption: Rural buyers are reversing past trends by embracing more listed and branded products.
  • Rural India shows rising aspirations: Consumers in rural areas are willing to spend more on branded goods, indicating growing brand consciousness.
  • Slowing premiumization trend: While premium products remain in demand, both urban and rural markets have seen a recent slowdown in the rate of premiumization.

Urban-Rural Line Blurs: Brands Need To Keep Up

The old clear-cut line between urban and rural spending habits is fading fast, says Emkay Research. Today, the upper end of rural society and the middle-income groups in cities are shopping in surprisingly similar ways. This shows how quickly rising incomes are changing the game across India. The report urges brands and businesses to stop seeing urban and rural consumers as completely different—because treating them that way could lead to costly mistakes. Instead, companies should craft smarter, tailored strategies that focus on delivering real value to both groups. In a market that’s evolving so rapidly, adaptability is key.

(With Inputs From ANI)

Also Read: India Goes Global For Oil, Unbothered By US Sanction Warnings

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