Anurag Sharma, Managing Director & CEO, AKAI India, shares his insights on utility over excess.
The Indian consumer is evolving, not just in what they buy, but why they buy. Over the past few years, we’ve witnessed a fundamental shift in purchasing philosophy: from ownership at any cost to meaningful access when needed. This transformation isn’t merely a trend; it’s a reflection of changing values, economic pragmatism, and a digital-first generation reshaping what “value” means.
The Shift From Ownership to Utility
For decades, the Indian market celebrated ownership as a marker of success. A home filled with appliances was a sign of prosperity. But today’s consumer, particularly millennials and Gen Z who represent 52% of India’s population, is asking a different question: Why own when you can access?
According to recent studies, 67% of Indian consumers now prefer usage-based pricing models over flat recurring fees, citing fairness, flexibility, and alignment with actual consumption as key drivers. This isn’t buyer’s remorse repackaged; it’s a conscious recalibration of priorities.
Consider the practicality: A young professional moving to a new city doesn’t need to invest ₹40,000 in a premium refrigerator only to worry about relocating it. A family upgrading from a semi-automatic to a fully automatic washing machine doesn’t want yesterday’s technology taking up space. The new consumer thinks in utility, not possession.
Why Subscriptions Resonate With Indian Values
The subscription or pay-per-use model taps into something deeply embedded in Indian sensibilities: the concept of artha (utility and prosperity). It’s not about accumulating; it’s about allocating resources wisely.
This mindset gained momentum due to several factors. Digital payment infrastructure, particularly UPI’s explosive growth (11 billion+ transactions monthly), has made recurring payments seamless. Rising disposable incomes in tier-2 and tier-3 cities have created aspirational segments willing to trade affordability for convenience. And critically, the pandemic-era burnout with ownership responsibilities shifted focus toward flexibility and freedom.
Businesses have taken notice. LG Electronics recently launched an appliance rental program targeting premium consumers. Amazon Prime’s ecosystem thrives on subscription logic. Even regional players are integrating usage-based models to capture new customer segments.
The Economics of Access
For enterprises in the consumer durables space, this transition presents both opportunity and responsibility.
When a consumer pays for what they use, both parties win through transparency. There’s no buyer guilt, no wasted capacity, no obsolescence anxiety. For businesses, subscription models unlock predictable revenue streams, deeper customer relationships, and invaluable behavioural data that drives personalization.
The data confirms this: subscription businesses maintain valuations 2-3 times higher than comparable transaction-based businesses. More importantly, they foster loyalty through continuous engagement rather than one-time transactions.
The Reality: Balanced Pragmatism
Yet the Indian market won’t abandon ownership entirely, nor should brands expect it to. Recent data shows consumer durables spending surged 72% in 2024-25, driven by homeownership booms and aspirations for quality-of-life improvements. The narrative isn’t binary.
Instead, smart companies are building hybrid ecosystems. Offering both purchase options and rental flexibility. Bundling services with products. Enabling easy upgrades without the friction of resale markets. Creating freedom within choice.
Additionally, accessibility matters. While urban consumers celebrate subscription flexibility, rural India, which has now outpaced urban consumption growth for six consecutive quarters, still prioritizes ownership due to financing accessibility and long-term affordability.
What This Means for Decision-Makers
For CIOs and enterprise leaders, the “pay for what you use” philosophy extends beyond consumer products. It reflects a broader organizational mindset gaining traction in B2B software, cloud infrastructure, and even corporate wellness programs.
The shift signals those customers, whether individual consumers or enterprises, increasingly demand:
- Transparency: Clear visibility into what they’re paying for.
- Flexibility: Freedom to scale up, down, or pause as needs evolve
- Personalization: Services tailored to actual usage patterns, not one-size-fits-all bundles
- Control: Self-service management without friction
The Path Forward
The Indian consumer’s embrace of utility over excess isn’t a rejection of quality or aspiration, it’s a maturation of it. It’s the recognition that true prosperity isn’t measured by what sits in your home, but by the experiences and freedom your choices enable.
For brands willing to embrace this mindset, the opportunity is immense. It’s not about selling less; it’s about selling differently. It’s about building relationships instead of transactions, understanding that today’s customer will remain loyal not because they own a product, but because that product serves their life exactly as needed.
In a nation of 1.4 billion people with rising incomes, digital fluency, and pragmatic values, the brands that thrive won’t be those screaming loudest about ownership. They’ll be the ones quietly delivering value, every single day, exactly as much as needed.