MAM
The rise of purpose-driven brands: How Indian companies are embracing social responsibility to attract customers
Mumbai: In the ever-evolving landscape of business, a remarkable transformation is taking place as companies in India and around the world recognise the importance of aligning their operations with social responsibility and purpose-driven initiatives. This paradigm shift marks the ascent of purpose-driven brands, where businesses intertwine their core values with impactful causes to resonate with customers who seek more than just products and services – they desire a sense of purpose and positive societal impact.
Consumer behavior has undergone a significant transformation in India as well. Modern consumers are not merely seeking value for money; they are increasingly concerned about the ethical, environmental, and social implications of their purchasing decisions. This shift in consumer expectations has spurred companies to reevaluate their strategies and embrace a more socially responsible approach.
A survey conducted by Nielsen revealed that 73 per cent of Indian consumers are willing to pay more for products and services provided by companies committed to positive social and environmental contributions. This statistic underscores the economic potential of purpose-driven brands that can capture the attention of this conscientious consumer base.
Purpose-driven marketing entails conveying a company’s mission, values, and commitment to social responsibility as integral aspects of its branding strategy. This approach aims to forge an emotional connection with consumers by highlighting the company’s endeavors to contribute positively to society and the environment. Brands that adeptly execute purpose-driven marketing can anticipate enhanced customer loyalty, brand affinity, and market influence.
Amul is a prime example of a purpose-driven brand. With its “Amul for India” campaign, the company has celebrated India’s achievements across various domains, and its advertisements often feature messages of national pride and unity. By aligning its brand with the aspirations and emotions of Indians, Amul has not only secured a special place in the hearts of its consumers but also solidified its status as a purpose-driven brand.
Industry-Specific Insights
1. Sustainable Fashion
In India’s fashion industry, sustainability is emerging as a crucial focus area for purpose-driven brands. FabIndia, a leading retailer of handcrafted textiles and home furnishings, places a strong emphasis on traditional craftsmanship, fair trade, and rural development. By promoting sustainable livelihoods and providing a platform for local artisans, FabIndia resonates with consumers who prioritise ethical consumerism.
2. Technology with a Social Impact
Even the technology sector in India is experiencing a paradigm shift. Companies like Wipro are embedding social responsibility into their business ethos. Wipro’s “Sustainability and Social Responsibility” initiatives span various areas, including education, healthcare, and environmental conservation. Through these initiatives, Wipro not only contributes positively to society but also showcases its commitment to making a meaningful difference beyond profits.
3. Food Industry
The Indian food industry is witnessing the rise of purpose-driven brands that prioritise health, sustainability, and ethical practices. Paper Boat, a famous Indian beverage brand, connects with consumers through nostalgia and cultural heritage. By using traditional recipes and natural ingredients, Paper Boat not only offers unique beverages but also preserves traditional flavors, contributing to a sense of identity and shared memories among its consumers.
4. Corporate Social Responsibility
Purpose-driven brands often integrate Corporate Social Responsibility (CSR) programs as a means of giving back to society. HUL (Hindustan Unilever Limited), a multinational consumer goods company, is an exemplar in this domain. Through initiatives like Project Shakti, HUL empowers rural women by providing them with entrepreneurial opportunities as direct-to-home sales agents. This not only contributes to women’s economic empowerment but also enhances the company’s social standing.
The surge of purpose-driven brands represents a significant shift in the business landscape, both globally and in India. Companies are recognising that their success is intertwined with the well-being of society and the environment. By embracing social responsibility, Indian brands attract conscious consumers, catalyse change, and set new benchmarks for the industry.
As consumer demands continue to evolve, purpose-driven brands in India are poised for success. By aligning their values with impactful causes, these brands are fostering more profound connections with customers, leaving a lasting impression, and demonstrating that profitability and purpose can coexist harmoniously, thus reshaping the Indian business landscape for the better.
This article has been authored by Thinkin Birds founder Bhavik Mehta.
AD Agencies
Omnicom posts $6.2 bn Q1 revenue, EBITDA margin rises to 14.8 per cent
AI push and cost synergies lift margins in first full quarter post-merger
NEW YORK: Omnicom has reported a robust first quarter following its acquisition of Interpublic Group, signalling early gains from integration, cost efficiencies and a sharper focus on AI-led services.
The results mark the first full quarter with Interpublic’s operations included, offering a clearer view of how the combined entity is shaping up. Revenue from core operations stood at $5.6 billion, up $345 million year on year on a combined basis, while organic growth came in at 3.9 per cent. Adjusted EBITDA margin rose sharply by 240 basis points to 14.8 per cent, reflecting early synergy benefits.
“We’ve seen momentum and cohesive growth across the organisation,” said Omnicom chief executive officer John Wren. “Our results demonstrate the benefits of realigning our portfolio and moving decisively on integration.”
A key part of that realignment involves shedding underperforming assets. Omnicom has identified businesses worth roughly $3.2 billion in annual revenue for disposal, with about $1 billion already exited in the first quarter. The company expects to complete most of the remaining divestments over the coming quarters, sharpening its focus on higher-growth, higher-margin operations.
On the bottom line, adjusted earnings per share rose 11.8 per cent to $1.90, underlining the financial impact of cost discipline and integration. The company is targeting $900 million in cost synergies by 2026, rising to $1.5 billion by mid-2028.
“We are realising significant cost reduction synergies while continuing to invest for growth,” said Omnicom chief financial officer Philip Angelastro.
Beyond the numbers, the strategic pivot is becoming clearer. Omnicom has restructured its business around “core operations”, stripping out assets earmarked for sale to highlight the segments driving future growth. More than half of its revenue now comes from integrated media, which includes data, commerce, CRM and content automation, areas that are growing faster than traditional advertising.
Indeed, integrated media led growth in the quarter with high single-digit gains, while PR and experiential businesses delivered mid-single-digit growth. Healthcare posted modest gains, while traditional advertising lagged, reflecting a broader industry shift towards performance-driven and tech-enabled marketing.
Central to this transformation is Omni, the company’s AI-powered marketing and sales platform. Rolled out across the organisation during the quarter, the system connects data, talent and services while enabling AI-driven workflows.
The platform is already delivering tangible results, improving media performance, speeding up campaign execution and enhancing measurement capabilities. Integration with partners such as Adobe and Amazon is further expanding its reach.
“We’ve put the latest agentic AI tools in the hands of all our employees,” said Wren, highlighting the company’s push towards automation and data-led decision-making.
The shift is also reshaping client relationships. Omnicom reported new business wins with major brands including IBM, GSK and John Deere, while expanding engagements with existing clients such as Unilever and Exxon. Increasingly, clients are opting for consolidated partnerships, relying on a single provider for end-to-end marketing and sales services.
“There’s a clear trend of clients choosing one partner to manage most of their needs,” said John Wren. “Our integrated model makes that easier.”
Geographically, the US remains the largest market, contributing 61 per cent of revenue, followed by Europe and the UK at 21 per cent. Growth was strongest in the US, with other regions posting modest gains.
The balance sheet remains solid despite increased debt following the acquisition. Long-term debt stood at $10.2 billion at the end of the quarter, while liquidity was supported by $4.3 billion in cash and a $3.5 billion revolving credit facility. The company is also returning capital to shareholders, repurchasing $2.8 billion worth of shares in Q1 as part of a planned $5 billion buyback programme.
Looking ahead, Omnicom remains optimistic but cautious. While the company expects double-digit EPS growth for the year, it acknowledged ongoing geopolitical uncertainties, particularly in the Middle East, though the region accounts for less than 2.5 per cent of revenue.
The integration of Interpublic is still in its early stages, but the initial signs point to a business that is not just bigger, but structurally different. With AI at its core, a streamlined portfolio and a growing tilt towards integrated services, Omnicom is betting that scale, simplicity and smart technology will keep it ahead in an increasingly complex marketing landscape.
If the first quarter is anything to go by, that bet is already starting to pay off.
