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Breaking India News Today | In-Depth Reports & Analysis – IndiaNewsWeek > Economy > Consumers Hold More Power than Regulators in Market Dynamics
Economy

Consumers Hold More Power than Regulators in Market Dynamics

Indianewsweek By Indianewsweek May 18, 2026 3 Min Read
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Recently, the revelation that specific employees at Lenskart were afforded privileges not available to others sparked significant discussion on social media. Initially, Lenskart refuted the allegations but later offered weak acknowledgments that further fueled discontent. This led to mounting pressure on the company’s offices and retail outlets, highlighting a broader concern within the startup ecosystem. While startups are known for their propensity to disrupt, they must also recognize that damaging trust can provoke a backlash from society that is more intense than any regulatory or competitive response.

Startups often focus on rapid progress, sometimes at the expense of sensitivity. Founders traditionally emphasize aspects such as product-market fit, customer acquisition costs, and growth metrics, often neglecting that markets operate as social ecosystems intertwined with identity, beliefs, and emotions.

It is important to note that established brands are not exempt from similar controversies. Brands like Fabindia, Manyavar, Tanishq, Nalli Silks, and Malabar Gold and Diamonds have faced backlash over their advertisements during festive seasons. Consumers have transitioned from passive observers to active participants, with a single tweet capable of escalating into a significant reputational crisis. In this digital age, permanent records of controversial statements make it difficult for brands to escape scrutiny.

To mitigate the risk of such issues, consumer startups should integrate cultural awareness into their decision-making processes, whether they are developing marketing campaigns or creating internal policies for employees. A fundamental principle that has guided the writer in their own startups is the fair treatment of all employees. While provocative marketing strategies can be effective when aligned with a compelling offer, they should not be employed merely to generate controversy for viral effect. If missteps occur, it is crucial for founders to issue sincere and humble apologies—a quality that often seems absent in the startup realm.

Conversely, some brands have navigated these challenges effectively. Amul has excelled in being both topical and culturally sensitive, balancing humor with sensitivity for many years. Similarly, Tata Tea’s ‘Jaago Re’ campaigns have addressed social issues while honoring public sentiment. Startups such as Mamaearth and Paperboat have engaged with local cultural contexts to foster trust without resorting to sensational tactics.

As mainstream startups increasingly influence consumer behavior, they bear a heightened responsibility. Growth now encompasses not just market share but also the necessity of gaining societal approval.

(The author is a serial entrepreneur and best-selling author of ‘Failing to Succeed’; follow them on X @vaitheek.)

Published on May 11, 2026

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