Agencies, your mass-market muscle won't flex in premium India

The Indian consumer landscape is in the middle of its biggest shift yet. From personal care and fashion to skincare and coffee, India is premiumising—and fast.

This change isn’t a blip. It’s a tectonic realignment. COVID-19 had less of an economic impact on India's upper-middle class, who emerged confident, connected, and extremely aspirational.

Even if one considers India’s top 5% of the population to exhibit premium desires, that still makes it approximately 65 million people—roughly equal to the populations of countries such as Thailand, the UK, or France.

They’re exposed to global aesthetics, addicted to social discovery, and unapologetic about expressing their individuality. They want more from brands: better stories, more character, and premium experiences.

But it also poses a question: Are traditional agencies equipped to meet this demand? Or worse, do they even recognise the challenge as an opportunity?

The rise of the premium Indian consumer

The holy trinity of roti, kapda, and makaan best summed up India's consumption philosophy for decades. That mindset powered the largest brands and the most successful agencies with campaigns that espoused middle-class insights and values.

Today, we are witnessing the biggest-ever shift in the history of consumer India, led by a burgeoning upper-middle class.

Having met all basic needs and some more, today’s consumers are trading up: from instant coffee to craft blends, from deodorants to luxury perfumes, and from mass-produced snacks to organic, artisanal foods.

Health is no longer about preventing disease; it’s about subscribing to a daily wellness lifestyle. Packaging and branding have evolved to world-class standards.

Premiumisation isn’t just about importing Western luxuries; it is also about elevating Indian traditions. Ayurveda found its way into high-end skincare. Handwoven textiles transformed into fashion statements.

Scotch whisky, once the gold standard of aspiration, now faces competition from Indian single malts. Even street food went gourmet, appearing on fine-dining menus. This isn’t a niche trend—it’s the primary growth engine across industries. 

Even mass-market FMCG giants, historically focused on affordability, are aggressively launching premium variants.

From roti, kapda aur makaan to beauty, fashion aur dukaan 

Far from the need-based outlook of yore, India’s upper middle class is defined by three desires:

a) A desire to own and experience all things beautiful

b) A desire to be more fashionable

c) A desire to be the pilot of their lives and careers

For them, beauty encompasses more than just appearance. Beautiful products and experiences drive various categories such as home decor, cars, food, alcohol, electronics, and retail. New-age brands are pushing the boundaries of beauty and setting new benchmarks that are being followed by heritage brands.

Fashion is now mainstream. Driven by self-expression, each person wants to follow their identity and language of fashion. New ideas, like gender-fluid fits, indie brands, and local ethnic crafts, are making Indian fashion bold, personal, and premium.

Ownership of your destiny is the biggest aspiration of the era. From solopreneurs and D2C founders to influencers and creators, the idea of ‘apni dukaan’ isn’t just about income—it’s about identity and pride.

Premium is the most happening club, and agencies have uninvited themselves.

Despite the undeniable cultural and economic shift, most advertising agencies remain stuck in an outdated mindset. Historically, Indian brands have been built on human-benefit-driven insights—‘use this deodorant, become a chick magnet,’ or ‘use this oil and prevent heart attacks’. 

The problem-solution framework has been the default approach for decades, and while effective for mass-market products, it falls short in the premium and lifestyle segments.

Agencies know it, but they are seeking solutions elsewhere. Seeking to reinvent themselves and gripped by FOMO, many have blindly jumped on the performance marketing bandwagon, which prioritises immediate conversions over long-term brandbuilding.

This approach, too, cannot build brand love— the single most critical factor that persuades consumers to pay a premium.

Desire, not problems, drives the development of premium brands. If you ever doubt this, just Google ‘the most valuable brand in the world’.

And yet, agencies continue to function either with the problem-solution mindset or the push-led performance-first mindset. They still address consumers as if it were 2005, despite the fact that we are now in 2025.

It’s time for a new breed of agencies

India is at the cusp of a cultural renaissance. It needs agencies that are more than just advertisers – they need to be curators, tastemakers, and stylists to a new India.

That requires:

● New talent: Attract people who’ve consumed and lived the premium way, not just studied it.

● Design leadership: Copy-led campaigns can’t capture a visual-first world. Designers are the true architects of premium brands.

● Cultural intelligence: Global thinking blended with India’s rich heritage and evolving aspirations to create our own version of sophisticated premium.

Premiumisation is the opportunity of the century.

The agencies that understand these concepts will build lasting brands.

The agencies that don’t will be left speaking a language no one listens to anymore.

(Ninad Umargekar is National Strategy Head at Famous Group and Co-Founder of HEllO EDC, a modern luxury brand of men’s everyday carry.)