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A growing number of Indian consumers are turning away from traditional branded products in favor of private labels, with 52% now making the switch, according to the latest EY Future Consumer Index (FCI) – India edition. The report underscores a dramatic shift in shopping behavior, driven by changing expectations around value, trust, and product relevance.
Private labels — once seen as lower-cost alternatives — are gaining ground as viable, even preferred, choices. According to the report, 70% of Indian consumers believe that private label products now match the quality and effectiveness of branded offerings.
“Consumer behaviour has traditionally evolved in response to changing economic situations, but the current shifts appear to be more permanent,” said Angshuman Bhattacharya, Partner and National Leader, Consumer Products and Retail Sector, EY-Parthenon. “Retailers are confidently launching private labels and allocating prime shelf space to them.”
This changing landscape is also reflected in store layouts and product placement. Nearly three-quarters of consumers (74%) report seeing more private label products in stores, with 70% noticing these products being placed prominently at eye level. Meanwhile, 69% of shoppers say they are drawn to store brands primarily for the cost savings.
Even brand innovation efforts are being met with skepticism. While many legacy brands attempt to improve products through ingredient or formula changes, 34% of consumers interpret these moves as cost-cutting rather than genuine innovation. Notably, 59% say they only purchase branded products when they’re on sale.
Despite this shift, consumers remain open to returning to legacy brands — but only under specific conditions. About 47% said they would switch back if a branded product offered superior taste, quality, or performance, while 44% would consider a return for better value. The same percentage expressed willingness to pay a premium for products that deliver better performance.
Certain categories are still viewed as innovation leaders. Clothing and footwear (58%), beauty and cosmetics (51%), and personal care (45%) are seen as the most forward-thinking, thanks largely to ongoing investments in R&D.
Technology is playing an increasingly pivotal role in the evolving retail landscape. The report finds that 62% of consumers now base their purchase decisions on artificial intelligence (AI) recommendations, while 58% say AI has improved their overall shopping experience.
“Brands that fail to adapt to this new consumer reality risk losing relevance,” Bhattacharya added. “But for those willing to innovate and refine their messaging, the current shift offers a chance to capture new loyalty and market share.” The findings suggest a clear message: in today’s market, offering value alone isn't enough — consumers demand quality, performance, and purpose. And in this dynamic environment, private labels appear to be rising to the occasion.
