Are brands losing ground as customers chase deal-thrill?

Mathur isn’t alone. Across India, consumers are increasingly trading brand allegiance for value, driven by a culture of discounts, cashback offers and flash sales. This shift has left brands scrambling to retain loyalty in a market where price often outweighs everything else.

However, this narrative oversimplifies the evolving Indian consumer. As Shubhranshu Singh, chief marketing officer (CMO) of Tata Motors’ commercial vehicles business, points out, “It is futile to talk about an ‘average’ Indian customer. India is incredibly diverse and heterogeneous. Its true value-consciousness is a common factor no matter whether the customer is looking for mass, popular or premium goods or services. But remember, India is incredibly young—400 million Indians are not yet 20 years old.”

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This begs the question: Is the relentless focus on short-term wins eroding the foundations of long-term brand equity?

The rise of the deal-seeker

E-commerce giants like Amazon and Flipkart have fundamentally reshaped shopping habits in India. Annual shopping events such as Amazon’s Great Indian Sale and Flipkart’s Big Billion Days have conditioned consumers to wait for discounts, with many now equating affordability with value.

Add to this the growing popularity of buy now, pay later (BNPL) schemes and cashback offers from platforms like Paytm and Google Pay, and it’s no surprise that over 60% of Indian shoppers actively compare prices before making a purchase. “It’s not that consumers don’t care about brands,” says Pranav Tambey, general manager, marketing, Havells India. “It’s just that the thrill of getting a good deal often outweighs the loyalty momentarily. However, sustainably superior brand experiences of products and services will always outweigh the deal thrills.”

Yet, Tata Motors’ Singh reminds us of the broader picture. “Indian customers are technology-savvy and well-networked. They may not be affluent, but they are not ignorant. More than discounts, they have a refined sensibility for empathy, personalization, convenience and emotional gratification. These will define and create loyalty. Quality, reliability, transparency and trust are highly valued.”

The short-term trap

While discounting strategies drive immediate sales, they come at a significant cost. Brands that rely too heavily on price cuts risk diluting their value proposition. A product perpetually on sale loses its aspirational appeal, reducing the consumer’s perception of its worth.

For example, subscription services like Zomato Gold initially positioned themselves as premium offerings, exclusive to a select few. Over time, frequent discounts and aggressive competition with similar platforms eroded this distinctness, turning a once-coveted membership into a commodity.

This phenomenon is evident across categories like electronics, fashion and even D2C (direct-to-consumer) brands, where “festive offers” and constant sales cycles dominate marketing strategies. However, once a brand becomes synonymous with discounts, it’s nearly impossible to walk back without losing customers.

The brands that stand tall

Despite these challenges, some brands have successfully maintained loyalty without resorting to aggressive discounting.

Take Apple, for instance. By consistently positioning itself as a premium, innovative brand, Apple has managed to cultivate a loyal base of customers who prioritize quality and experience over price. Similarly, Tata Tea’s iconic “Jaago Re” campaigns have resonated emotionally with Indian audiences, reinforcing trust and loyalty.

Among D2C brands, Mamaearth stands out as an example of leveraging transparency and authenticity to build a loyal customer base. By focusing on toxin-free, ecofriendly products and engaging storytelling, the brand has created a value proposition that transcends price wars.

Winning emotional loyalty

The brands that thrive in a deal-driven market are those that shift focus from transactional loyalty to emotional connections. Emotional loyalty, built on shared values, trust and authenticity, is what drives repeat purchases even when prices aren’t discounted.

As Singh elaborates, “Customer value in terms of ease of access and great experience delivered with ecosystem benefits will build community, affiliation, and stickiness. Responsive customer support that prioritizes solving problems efficiently and empathetically is highly esteemed. Indian consumers value relationships and have immense pride in leading Indian brands and businesses.”

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Storytelling has emerged as a critical tool in this shift. Campaigns like Amul’s iconic ads blend nostalgia, humour and topicality, creating a strong cultural and emotional bond with audiences. Similarly, purpose-driven marketing—whether championing sustainability, gender equality or local artisans—resonates deeply with Indian consumers.

Technology also plays a pivotal role in fostering emotional loyalty. AI-driven loyalty programs, personalized rewards and gamified experiences are helping brands retain customers in meaningful ways. For instance, Starbucks uses purchase history to recommend beverages, creating a sense of exclusivity and personalization.

What about smaller towns?

Interestingly, while urban consumers have become increasingly deal-driven, tier-II and III cities remain relatively brand-loyal. For these audiences, trust and familiarity still hold sway. Brands like Patanjali and Maruti Suzuki have leveraged this insight, building their appeal on reliability rather than discounts.

However, as digital penetration deepens and online platforms gain prominence in smaller towns, even these markets are gradually shifting. The exposure to a wider range of options and deals is turning traditionally brand-loyal consumers into savvy, value-conscious shoppers.

The balancing act for marketers

For CMOs, the challenge lies in striking a balance between meeting quarterly sales targets and investing in long-term brand-building initiatives. While discounts may drive short-term results, a purely transactional relationship with customers is unsustainable.

“Loyalty isn’t dead—it’s just evolving and expecting more out of the brands,” adds Tambey. “Customers still value quality, trust, and pre- and post-sales experiences. It’s our job to remind them why brands matters, beyond the price tag.”

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By focusing on emotional connections, storytelling and purposeful marketing, brands can reclaim their relevance and build lasting relationships with consumers. While deals may win a transaction, it’s authenticity, innovation and experience that win a customer’s heart—and loyalty.

In a market flooded with choices, loyalty is no longer guaranteed. But for brands willing to rise above the noise of discounts and price wars, the rewards could be extraordinary.