Urban-rural consumption patterns changing, Gen-Z marketing needs a rethink: Kantar report – Brand Wagon News

Buyer behaviour is shifting, which calls for a shift in brand strategies. Once central to the consumer goods market, the urban middle class is now the smallest cohort, with real incomes under pressure and consumer confidence stagnating, revealed Kantar’s 2025 predictions for brand strategies. In contrast, rural areas are seeing more buoyant growth, with increased consumption driven by good monsoons and diverse income sources. “Whether urban or rural, brands need to tap into the cultural zeitgeist of India – aspiration, democratisation, national pride and a belief in opportunity at every turn. What is more important in rural is to cue cultural familiarity and build more salience or trust. In rural, trust is harder to build and easier to lose. Of course, the standard strategies around affordability and accessibility will be key. But when a brand has aspirational codes and is accessible, it tends to do much better,” Soumya Mohanty, managing director and chief client officer, South Asia, Insights Division, Kantar, told BrandWagon Online. 

The report further revealed that digital adoption in rural regions has also surged, with digital payments growing from 38% in December 2022 to 43% in July 2024, and e-commerce deliveries increasing from 14% to 23% over the same period.

Furthermore, the trend towards premiumisation is being driven by aspirations, as India’s demographic shifts create a cultural sweet spot. Smaller families, women embracing self-love, and Gen Z carving out their own identities are key drivers of this shift. However, Kantar points out that as aspirations evolve, so too do the entry points for brands aiming to meet these aspirations. Brand differentiation will be critical to success in this environment, with consumers increasingly looking for brands that stand out for their perceived uniqueness.

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Media consumption patterns are also changing. While Indian consumers continue to engage with both traditional and digital media, the quality and level of attention vary significantly across platforms. Media planning must, therefore, take into account the different attention characteristics of each channel, ensuring that campaigns strike the right balance between reach, attention, and the desired brand outcomes. “Watching India’s evolving market dynamics, I’m convinced that we need to move past the outdated ‘rural = cheap, urban = premium’ mindset. In our recent campaigns, vernacular video content on WhatsApp in UP and Bihar outperformed traditional TV spots by three times, showing that rural consumers respond to ‘show, don’t tell.’ That’s why we are betting big on vernacular video content, community commerce, and what we call ‘aspirational value’ positioning – because the future belongs to brands that can speak both languages—literally and metaphorically,” Abhinav Rege, founder and managing partner, Social Donut, added. This shift in media consumption habits has implications for campaign strategies, with the need for creative messaging and media mixes tailored to the preferences of consumers. 

Finally, Kantar advises marketers to rethink their approach to Gen Z, warning against broad generalisations about this highly diverse demographic. Gen Z’s motivations are complex and cannot be fully understood through simplistic or algorithm-driven personalisation. Successful brand strategies will need to focus on understanding the intersections of Gen Z’s identities and crafting relevant experiences that resonate on a deeper level. To capitalise on emerging opportunities, brands should also explore the intersections of consumer identities, harness the power of democratised access through digital platforms, and integrate influencer content with traditional advertising to maximise brand reach and purchase intent.

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