Desi to Desire — Premiumisation lessons from goli soda
The goli soda, once a vibrant symbol of our local flavour and consumption, has quietly disappeared from the everyday scene, leaving behind a nostalgic void filled by contemporary consumerism. In the bustling streets of our cities and towns, traditional products like millets, aam-papad, layiya patti / kadalai mittai / chikki and goli soda, once ubiquitous and easily accessible from hand carts and small kirana stores, are now becoming premium commodities. What was once seen as down-market desi products are now products of desire.
The goli soda, also known as ‘banta’ or ‘kancha soda’, is a traditional carbonated soft drink popular in India, particularly in the northern and southern regions. The beverage is named after the marble (‘goli’) that seals the bottle. This unique closure involves a glass marble held in place by the pressure of the carbonated liquid inside, which is released with a distinctive ‘pop’ when the marble is pushed down.
As Indian consumers enjoy rising incomes, indulge in aspirational experiential shopping, and shift their consumption patterns, they are increasingly seeking higher-quality, exclusive products. This transformation reflects the broader trend of premiumisation, a branding and marketing strategy that enhances the perceived value of a product or service.
Premiumisation focuses on high-quality ingredients, superior manufacturing, and a sense of exclusivity, allowing brands to justify higher prices by offering customers a more refined option that bridges the gap between luxury items and uninspiring mass-market goods. Rather than reinventing the wheel, premium brands elevate familiar products, making them more appealing to their target demographic through enhanced consumer experiences. This is evident in the way the goli soda, once a humble staple, is now positioned as a nostalgic, artisanal beverage, often sold at a premium with fancier packaging.
Rising incomes, aspirational experiential shopping, and shifting consumption patterns are profoundly transforming Indian consumers. According to the World Bank, India’s GDP per capita has steadily increased, reaching approximately $2,300 in 2023, reflecting a significant rise in disposable incomes. This economic uplift has fuelled a shift towards more experiential shopping, with consumers increasingly valuing unique, high-quality products, and memorable experiences over mere transactional purchases. A report by Deloitte highlighted that 62% of Indian consumers are willing to pay a premium for products that offer superior quality and exclusivity. Additionally, the Nielsen Global Premiumization Survey found that 45% of Indian shoppers are inclined to spend more on premium products, indicating a clear shift in consumption patterns towards more aspirational and experience-driven purchasing behaviour.
According to the National Statistical Office (NSO), rural India saw a significant increase in average monthly household income, reaching Rs 10,218 in 2021-2022, up from Rs 6,731 in 2011-2012. This income growth has led to enhanced purchasing power and a shift towards branded and premium products, with the Kantar Worldpanel indicating that rural households contribute 36% to FMCG sales in India.
Moreover, a report by CRISIL highlighted that rural consumption has grown faster than urban consumption in recent years, driven by better connectivity and increased access to diverse products. Nielsen’s research also showed that 50% of rural consumers are now engaging in online shopping, reflecting a shift towards more aspirational and experiential consumption patterns. These changes illustrate how rising incomes and evolving consumer preferences are reshaping the rural Indian market.
Internet access, the reduction in data costs, and the proliferation of social media have dramatically changed rural consumption patterns in India. According to the Telecom Regulatory Authority of India (TRAI), rural Internet subscribers grew to 363 million by the end of 2023, up from just 200 million in 2018. The average cost of data in India is among the lowest globally, at approximately $0.09 per GB, according to the Digital India report. This affordability has led to a surge in Internet usage, with rural users spending an average of 17 hours per week online. Social media platforms such as Facebook, WhatsApp, and YouTube are particularly popular, with Kantar IMRB reporting that 70% of rural Internet users are active on social media. This connectivity has not only increased exposure to a variety of products and brands but has also enabled e-commerce penetration, with rural online shopping growing by 58% year-on-year, as per a report by IAMAI and Kantar. Consequently, rural consumers are now more informed and are increasingly shifting towards branded and premium products, reflecting a significant change in their consumption patterns.
Non-urban youth in India are increasingly shying away from traditional products, gravitating towards contemporary alternatives that resonate with their modern lifestyles and aspirations. This demographic shift is fuelled by greater Internet access, exposure to global trends via social media, and the influence of urban migration patterns. As a result, traditional staples such as homemade snacks and locally produced beverages are being replaced by branded, innovative products like flavoured yogurts, energy drinks, and snazzy packaged snack foods. This evolving preference presents a significant opportunity for brands to premiumise their offerings, positioning them as superior, high-quality alternatives that cater to the youth's desire for novelty and exclusivity.
Interestingly, the rise of direct-to-consumer (D2C) e-commerce marketplaces has significantly driven premiumisation across various industries. By controlling their sales channels and online presence, D2C brands can bypass traditional retail avenues and curate a premium image from the outset. This direct connection with customers enables brands to design consistent shopping experiences with comprehensive brand storytelling, emphasising values such as craftsmanship, sustainability, and innovation. This stream of aspirational content resonates with consumers seeking premium experiences, further driving the premiumisation trend.
For instance, finding a pack of Marie biscuit or a bottle of goli soda has become harder than grabbing a pack of Lays chips, the premium Bourbon biscuits, or a small bottle of Coca-Cola or Pepsi, which are more widely available. The humble goli soda now has fancier bottle design, premium brand positioning, and a price premium too. Indian consumption patterns are fast evolving. Looks like Indian consumers want their candy also to be eye-candy!
(Srinath Sridharan is a policy researcher and corporate adviser. X: @ssmumbai.)
Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.