Brand Loyalty at Risk as Buyers Chase Deal-Thrill

While discounts drive immediate sales, they come at a significant cost. Brands that rely too heavily on price cuts risk diluting their value proposition

- Gaurav Laghate

A few years ago, Neha Mathur, a loyal customer of a well-known beauty brand, wouldn't have thought twice before restocking her favourites, even at full price. But today, she's scrolling through multiple e-commerce platforms, hunting for the best deals. "I'll buy whichever brand is offering a discount. Why pay more when they're all the same?" she says.

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."

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 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.