India’s retail market, valued at $1.06 Tn, is projected to reach $1.93 Tn by 2030, growing at an annual rate of around 10%. However, the centre of gravity is shifting. Growth is increasingly being driven by smaller towns as a broader base of consumers comes online, reshaping how brands think about access, distribution, and relevance.

With Tier II and III cities now accounting for over 60% of ecommerce traffic, online retail is projected to grow from $75 Bn to $260 Bn over the next five years. In parallel, India’s offline retail market is expected to expand from $751 Bn to $1.5 Tn, underscoring the scale of consumption across channels.

Investors like Rukam Capital view Tier II and III markets as the next phase of ecommerce-led growth, markets that are digitally engaged, aspirational, and still shaped by local preferences and cultural context.

A recently unveiled research by Rukam Capital, “Aspiration of New India: How Consumers Select, Shop, and Shape Brand Connections”, brings this perspective to the forefront.

The split where Tier I was experiential and Tier II was restricted to legacy brands is disappearing, with Bharat not just adopting homegrown direct-to-consumer (D2C) brands, but also actively trading up within categories. This reinforces a core investment belief that when you build for Bharat, you not merely pave the way to scale, but also prove relevance and provide for aspiration through practicality.

This is the new playbook for creating breakout consumer companies in health and wellness, beauty, FMCG, agritech, education and financial services, where price-first has evolved into pride-plus-value, driven by 58% consumers from Tier II towns opting for homegrown brands rooted in local stories and community impact.

Meaningful interest in women-led businesses is also evident. Rising incomes, expanding digital penetration, and increasing willingness to explore categories are creating a consumer base that is aspirational yet grounded, value-conscious yet brand-aware.

“These dynamics form the guiding principles of Rukam........

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