Gen Z, India\u2019s largest generation, is on track to become a key driver of the nation\u2019s economy, as the cohorts collective spending power in India is expected to reach $2 trillion by 2035, according to a report by Snap Inc. and Boston Consulting Group (BCG). <\/p>\n
With 377 million individuals, Gen Z already wields considerable influence, contributing to 43 per cent of India\u2019s total consumption across sectors, noted report titled The $2 Trillion Opportunity: How Gen Z is Shaping the New India. <\/p>\n
Gen Z\u2019s current spending power stands at $860 billion of this, $200 billion comes from direct spending (money they earn and spend themselves), while $660 billion is influenced spending, where Gen Z impacts the purchasing decisions of others, like family and friends. <\/p>\n
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By 2025, their direct spending will amount to $250 billion, with one in four already part of the workforce. <\/p>\n
Key industries where Gen Z\u2019s impact is particularly strong include fashion, dining, and entertainment. Gen Z accounts for 50 per cent of total spending on footwear, 48 per cent on dining, 48 per cent on out-of-home entertainment, and 47 per cent on fashion and lifestyle. <\/p>\n
This generation\u2019s shopping habits are also unique, as they research their purchases 1.5 times more than Millennials and often prioritize trending styles over brand loyalty.<\/p>\n
77 per cent of Gen Z finds AR and interactive content more engaging, so brands need to create visually compelling experiences both online and offline. <\/p>\n
The report also mentioned that 72 per cent of Gen Z shoppers rely on social media creators for shopping inspiration. Brands should collaborate with influencers who resonate with Gen Z\u2019s values and style, and integrate their products into social content to build trust and attract young consumers.<\/p>\n
\u201cGen Z responds to more purposeful, grounded reality content. They are more receptive to such content than inauthentic content. Ads on Snapchat have 1.2x more positivity than on any other social media platform… And because of this positivity, they drive 2x more purchase intent,\u201d said Pulkit Trivedi, MD, India, Snap Inc. <\/p>\n
Despite their clear potential, businesses have been slow to act. While 45% of brands recognize Gen Z\u2019s importance, only 15 per cent have taken steps to actively engage with them. <\/p>\n
This gap presents a substantial opportunity for brands to innovate, create immersive experiences, and capitalize on Gen Z\u2019s fast-growing consumer influence.<\/p>\n
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