Over 52% of Indian consumers are now switching to private labels or store brands, driven by rising price sensitivity and a growing belief in their quality, according to the latest EY Future Consumer Index (India edition). The report finds that shoppers are increasingly reassessing the value of branded products, with 69% saying private labels help them save money. Moreover, 70% believe these store brands meet their needs just as well as more expensive branded items.
Private labels, also known as store brands or in-house brands, are products manufactured and sold under a retailer’s own branding, rather than that of a well-known national or international brand. These items are typically positioned as more affordable alternatives and are sold exclusively through the retailer’s own outlets, whether physical stores or online.
Even as traditional brands try to innovate or change their product formulas, many consumers remain sceptical. About 34% view these changes as cost-cutting tactics, not genuine improvements. Meanwhile, 59% of shoppers say they only buy branded goods when they are on sale. “Retailers are confidently pushing private labels, giving them more shelf space and visibility,” said Angshuman Bhattacharya, Partner and National Leader, Consumer Products and Retail Sector, EY-Parthenon. “This shift seems more permanent than past changes. Technology is playing a big role, offering shoppers more options and tools to compare before buying.”
AI is emerging as a powerful influencer in this landscape. The survey shows 62% of consumers are now making buying decisions based on AI recommendations, while 58% say AI tools have made their shopping experience significantly better. However, brand loyalty isn’t entirely lost. Nearly half (47%) of respondents say they would return to branded products if they offer better taste, quality or performance. And 44% say they’d pay more for products that deliver improved results, especially in categories like clothing, beauty, and personal care, which are seen as the most innovative.
The message is clear: in today’s market, being “good enough” is no longer enough. To stay relevant, brands must offer real value, purpose and quality. Those that can, may still win back the trust of the modern Indian shopper.