Rural consumers display price sensitivity, rise in adoption of digital platforms: Report

The focus is on essentials with gradual increase in spending on personal care while decline in purchase of other non-essential categories. At the same time there is rising digital adoption with 7 in 10 rural consumers now engaging with online media.  Photo: Vijay Soneji
| Photo Credit:
VIJAY SONEJI

Rural Indian consumers displayed heightened price sensitivity with spending making them recalibrate their purchase decisions. According to a report released by GroupM India in collaboration with Kantar, 3 in 4 rural Indians expressed anxiety over their financial stability. At the same time, rural India is fast adopting digital platforms for shopping, payments and media consumption.

The report stated that rising household expenses in rural India is leading to tightening of monthly budgets leading to growing financial concerns and limited room for savings. Also rural consumers are concerned about inflation with financially-stressed states feeling the pinch hardest.

“Price sensitivity has been consistently increasing over time, indicating that consumers are becoming more conscious of prices when making purchasing decisions,” it noted.

The findings are based on a survey of over 4,000 rural adults across 20 Indian states, ensuring representation across gender, income levels, and age groups.

Shopping patterns

In terms of shopping patterns, on an average, rural Indians shop on 17 categories. The focus is on essentials with gradual increase in spending on personal care while decline in purchase of other non-essential categories. At the same time there is rising digital adoption with 7 in 10 rural consumers now engaging with online media. Social media, video content, and instant messaging platforms are fast becoming the norm, particularly among younger and affluent users. “Online purchasing behaviour has shown significant growth over time, with apparel leading as the most bought category, followed by cosmetics, household products, and groceries,” the report noted. Local shops in the village remain the preferred channel for buying groceries and household products.

Ajay Mehta, Managing Director – OOH Solutions, GroupM India, said “As media habits evolve and digital adoption grows in rural India, brands will need to focus on meaningful and hyper-local engagement. Rural wealth has been steadily increasing and the report indicates that one in five rural Indians have higher monthly household income than urban income. This presents huge opportunity for brands to tap into growing demand and aspirations of rural consumers.”

Puneet Avasthi, Director- Specialist Businesses, Insights Division, Kantar added, “As rural India becomes more connected and conscious, brands must rethink how they engage with this audience. In terms of media consumption habits, there has been diversification of content consumption in rural areas, with a decrease in snacking behavior and an increase in time spent on preferred content genres.”

Traditional media like TV and newspapers remain the most credible sources, while social media and influencers are perceived as less trustworthy, especially among older and higher-income groups, the report added.

Published on April 17, 2025