At the ET World Leaders Forum session titled “The New India Blueprint: Cities, Consumers, and the Business of Aspiration,” industry leaders across luxury, hospitality, housing, and consumer goods explored the evolving dynamics of Indian consumer behavior. Moderated by ET’s Sonali Krishna, the panel highlighted that while the modern Indian buyer is increasingly seeking premium experiences and lifestyle upgrades, they remain fiercely value-conscious and intolerant of sub-par quality.
Key Executive Perspectives & Insights
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Puneet Chhatwal (MD & CEO, IHCL):
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Value-Driven Premiumisation: Customers are willing to spend beyond the “you only live once” mindset, but they demand a strict price-value balance. Poor service or subpar quality is no longer tolerated.
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Tier-II & Tier-III Expansion: Hospitality private capex is at record highs, driven heavily by expanding hotel infrastructure, airports, and experiences into smaller Indian cities and regional hubs.
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Santosh Iyer (MD & CEO, Mercedes-Benz India):
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Shift to Value-Led Purchasing: Growth cannot be assumed purely based on economic tailwinds; experience and tangible value are central to retaining luxury buyers.
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Monetising Convenience: Time has become a premium asset. High-net-worth customers are increasingly willing to pay extra for speed—such as airlifting vehicles—to shorten wait times.
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Jayen Mehta (MD, Amul India):
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Bottom of the Pyramid Shift: A massive structural migration is taking place from unbranded/loose items to formal, packaged products. A mere 5% annual shift from loose to packaged dairy brings ~3.5 crore liters of milk daily into the formal sector.
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Wellness & Nutrition Demand: While premiumisation is accelerating, mass-market adoption is growing rapidly around integrated wellness concepts and affordable protein offerings.
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Arun Mn (Founder & MD, Casagrand):
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Housing Beyond Square Footage: Real estate buyers no longer view homes simply as physical space. Affordability and aspiration co-exist, driving demand for integrated lifestyle developments featuring sports facilities, senior care, and community safety.
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Broad Industry Takeaway
The 1.4-billion-strong Indian consumer base cannot be defined by a single metric; buying patterns vary across states, cities, and demographics. To succeed, brands across sectors must deliver premium differentiation, uncompromised quality, and transparent value simultaneously.
