Kantar: Rural India sees 43% rise in digital payments, 23% e-commerce growth

Kantar: Rural India sees 43% rise in digital payments, 23% e-commerce growth

Elaboration on Kantar’s ‘India at Crossroads’ Report for 2025
The ‘India at Crossroads’ report from Kantar presents a forward-looking analysis of the key trends shaping the future of marketing in India by 2025. This comprehensive report highlights critical socio-economic shifts, evolving consumer attitudes, and the growing influence of digital technologies. Here’s an expanded look at the major themes and strategic insights from the report:

1. India’s Socio-Economic Shifts
The post-COVID landscape has fundamentally changed India’s socio-economic dynamics:

Urban Middle Class Contraction: Rising costs and stagnant incomes have dampened consumer confidence, slowing urban consumption.
Rural Resilience: In contrast, rural India is driving consumption, powered by good monsoons, diverse income sources, and growing digital adoption. This highlights the importance of tailored strategies for rural markets.
2. Positive Rural Sentiment
Rural markets are witnessing a wave of optimism:

Small Indulgences: Increased spending on everyday luxuries like soft drinks and convenience products.
Digital Transformation: The adoption of digital payments, e-commerce, and gaming platforms has surged, as indicated by Kantar’s Rural Barometer 2024.
Opportunities for Growth: Brands that focus on rural consumers’ unique needs and aspirations stand to benefit significantly.
3. Aspiration Driving Premiumisation
India’s cultural evolution is creating opportunities for premiumisation:

Smaller Families and Changing Lifestyles: Families are investing in aspirational products, while Gen Z and women embracing self-love are redefining consumption patterns.
Perceived Brand Difference: Consumers prioritize brands that offer uniqueness and align with their personal aspirations.
4. The Attention Economy and Media Consumption
As media habits diversify, brands must adapt:

Channel-Specific Attention: The impact of traditional and digital media varies by channel, requiring precise media planning.
Consumer-Centric Approach: Marketers must understand how consumers engage with media and align strategies to maximize brand outcomes.
5. Rethinking Gen Z
Kantar warns against oversimplifying the highly diverse Gen Z demographic:

Intersectionality Matters: To resonate with Gen Z, brands must understand their varied identities, motivations, and aspirations.
Personalized Strategies: Go beyond algorithm-driven personalization to create authentic and meaningful experiences.
6. Looking Ahead: Future Scenarios for 2025
Kantar outlines three potential scenarios for India’s future in 2025:

Trend Continuation: Modest economic growth with stability in consumption patterns.
Economic Disruption: Challenges that may constrain consumer spending.
Accelerated Growth: A surge in economic activity and consumer confidence.
To thrive in any scenario, brands must embrace complexity, adapt to evolving consumer identities, and build emotional connections through storytelling.
Key Recommendations for Marketers
Recenter Brand Narratives: Align brand messaging with cultural and consumer identity shifts.
Dynamic Media Planning: Use media channels strategically to balance reach, attention, and efficiency.
Deepen Gen Z Insights: Avoid generalizations and uncover nuances to create relevant campaigns.
Explore Identity Intersections: Tap into the complexity of consumer motivations to discover new growth opportunities.
Leverage Digital Platforms: Democratize access through relatable, impactful storytelling.
Balance Media Mix: Integrate influencer content with traditional advertising for maximum impact.
Leadership Perspectives
Deepender Rana, Executive Managing Director, emphasizes the importance of “driving meaningful difference” to overcome slowdowns and grow shareholder value.
Soumya Mohanty, Managing Director and Chief Client Officer, highlights the necessity of avoiding generalizations and embracing data-driven insights to stay competitive in 2025.
Key Takeaways
The future of marketing in India lies in understanding the socio-economic shifts, leveraging digital innovations, and crafting personalized, emotionally resonant brand strategies. By embracing complexity and adapting to consumers’ evolving preferences, brands can thrive in a dynamic marketplace.

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Author: Sania Khan