With a staggering 377 million members, Gen Z has emerged as India’s largest generation and is reshaping the consumer market and business landscape. This dynamic demographic is often misunderstood as a homogeneous group of teens, but it is a diverse force with unparalleled economic influence. A recent report by Snap Inc. and Boston Consulting Group (BCG), “The $2 Trillion Opportunity: How Gen Z is shaping the new India,” sheds light on the evolving purchasing power and behavioral trends of Gen Z. I am. This generation’s current purchasing power is a staggering $860 billion and is predicted to soar to $2 trillion by 2035.
Report highlights Gen Z’s unique spending habits
Gen Z’s influence extends across multiple consumer categories, including shoes, dining, entertainment, fashion, and lifestyle. The main trends shaping their spending habits are:
Shoppification: Blending social interactions and shopping experiences. Visual-centric consumption: Strong preference for immersive visual content, including AR and interactive experiences. Influencer-driven decision-making: Rely on social media influencers and their inner circle for product recommendations. Omnichannel shopping: Seamlessly transition between online and offline shopping channels.
Gen Z is using images, GIFs, and AR to shop and interact, indicating that they want an immersive, “physical” experience that seamlessly blends online and in-store shopping. Additionally, Gen Z is 1.5 times more likely than Millennials to research a purchase, and they often consult their close-knit “inner circle” of friends and family before making a purchase decision. Gen Z’s reliance on visual media shapes their social interactions and purchasing behavior. According to the report, 77% of Gen Z are highly attracted to augmented reality and interactive content, increasing the need for brands to prioritize immersive visual marketing. This group likes to express authenticity through visual sharing, often using platforms like Snapchat. 90% of daily active users in India are between 13 and 34 years old. They follow trends over brand loyalty, and 72% are inspired by creators’ social channels.
The report further highlighted that while 45% of companies recognize the potential of Gen Z, only 15% are actively engaging with this demographic. It mentions the methods that brands should follow to capture the attention and loyalty of Gen Z.
Embrace visual content: Prioritize visually appealing and interactive content. Leverage social media: Utilize platforms like Snapchat to truly connect with Gen Z. Partner with influencers: Work with Gen Z influencers to build trust and credibility. Deliver a seamless omnichannel experience: Deliver a consistent and convenient shopping experience across all channels.
The economic power of Gen Z is undeniable, and brands that fail to adapt to their evolving tastes risk being left behind. By understanding and responding to the unique needs and behaviors of this generation, companies can unlock significant growth opportunities and secure a lasting future. The findings are based on primary research with input from 1,000 parents and more than 1,200 Gen Z and Millennials, and powered by the expertise of Snap and BCG. The report highlights the huge potential for brands to capture a share of Gen Z’s growing influence as they continue to drive and redefine India’s consumer economy.
Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of ET Edge Insights, its management, or its members.
Source link
