Inside Bharat’s digital-first, trust-led consumer economy

/ 4 min read
Summary

WhatsApp dominates discovery, creators replace celebrities, and UPI anchors spending in non-metro India, finds a Rukam Capital–YouGov study.

Discovery has also become decisively video-first. YouTube reviews influence 37% of consumers, while 32% discover products through social media.
Discovery has also become decisively video-first. YouTube reviews influence 37% of consumers, while 32% discover products through social media. | Credits: Getty Images

India’s consumption story is undergoing a quiet but decisive shift. Away from the glare of metros, Tier 2 and Tier 3 cities, emerging urban clusters, and small towns are now shaping how the country discovers brands, builds trust, and spends money.

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According to a new consumer study by Rukam Capital, a consumer-focused venture capital firm, conducted in collaboration with YouGov, nearly 90% of Bharat consumers use WhatsApp as their primary digital platform—spanning communication, discovery, and even commerce—underscoring how deeply embedded digital behaviour has become beyond India’s biggest cities.

The report, Beyond Metros: The Real Story of Bharat’s Next 500 Million, maps a consumer base that is markedly different from long-held metro-centric assumptions. Rather than being impulsive or advertising-led, non-metro consumers are increasingly research-driven, community-influenced, and value-conscious. With around 65% of India’s population residing in Tier 2, Tier 3, and rural regions, this cohort is no longer “emerging”—it is already driving incremental demand and long-term growth.

From celebrity appeal to creator credibility

One of the sharpest shifts highlighted in the study is the collapse of celebrity influence in non-metro India. Only about 3% of consumers now rely on celebrities for purchase decisions. In contrast, 22–23% trust recommendations from digital creators—people perceived as relatable, credible, and grounded in lived experience.

Discovery has also become decisively video-first. YouTube reviews influence 37% of consumers, while 32% discover products through social media. Importantly, 35% of Tier 2 and Tier 3 consumers actively use e-commerce platforms not just to buy, but to research—checking prices, reviews, and specifications well before committing to a purchase.

This behaviour signals a structural change: advertising alone no longer drives discovery. Evidence does.

Trust as the central currency

Trust, rather than aspiration, now anchors consumption decisions in Bharat. Word-of-mouth remains powerful, influencing 22% of consumers. Verification is routine—43% of Tier 3 consumers check official brand websites before buying, and nearly a third factor in customer service interactions as part of their decision-making process.

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Awareness around safety, ingredients, and sustainability is also higher than commonly assumed. Around 23% of consumers say eco-friendly and sustainability claims influence them, particularly when reinforced through peer or community validation rather than marketing narratives.

Archana Jahagirdar, Founder and Managing Partner at Rukam Capital, says the findings challenge entrenched assumptions. “What we see is a confident and deliberate consumer who researches deeply, relies on community validation, and values consistency over hype. Aspiration here is not about chasing labels, but about making informed choices that fit everyday life,” she notes.

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Spending with discipline, not impulse

Payments data further reflects this intent-led behaviour. UPI has become the default transaction layer, used by 67% of consumers across Tier 2 and Tier 3 markets. Rather than fuelling impulse buying, digital payments appear to support disciplined, value-led spending.

Discount tracking is common—52% of Tier 2 consumers actively follow sale days—while festivals continue to drive discretionary purchases in Tier 3 markets. Quick-commerce adoption remains limited at 36% in Tier 3, and in-home services are still nascent at 22%, pointing to uneven maturity across categories.

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WhatsApp as Bharat’s digital backbone

If there is one platform that defines digital Bharat, it is WhatsApp. With close to universal penetration in non-metro markets, it functions as a communication tool, discovery layer, and commerce enabler rolled into one. OTT consumption, meanwhile, is driven by mass moments and language relevance. JioHotstar leads usage across Tier 2 and Tier 3 markets, while nearly a quarter of Tier 3 audiences prefer vernacular-first OTT platforms.

Music apps see adoption of over 46%, and Telegram’s similar penetration in Tier 3 markets points to a shift toward utility-led digital behaviour. Professional networking remains limited outside metros, though Tier 2 cities are beginning to show momentum, reflecting rising white-collar aspirations.

Aspiration, redefined

The study also reframes how aspiration works in Bharat. It is subtle, personal, and grounded. Around 18% of consumers prefer bespoke offerings, while 13% respond to status cues rooted in quality and credibility rather than overt luxury. Nostalgia and smart technology features each resonate with about 12% of consumers, provided they deliver tangible, everyday utility. Pop culture influence, by contrast, remains marginal at just 4%.

Gaming, however, is emerging as a serious influence channel. More than half of Tier 2 and Tier 3 consumers respond to in-game advertising, positioning gaming as a high-attention medium capable of shaping consideration and purchase intent.

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The road ahead

Based on responses from over 5,000 consumers across 18 states, the study reinforces a central message: Bharat’s next 500 million consumers are already defining India’s growth trajectory.

As India eyes a $1 trillion retail economy, the winners will be brands and startups that understand how non-metro consumers discover products, validate trust, and spend with intent. The era of exporting metro playbooks to Bharat is over. The centre of gravity has moved—and it is firmly outside the metros. 

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