Gen Z to drive $2 trn in spending by 2035 in India: Report

Gen Z accounts for 50 per cent (of total spend in India) in the footwear category, and 44 per cent in the beauty and personal care category. Their collective spending power constitute 43 per cent of the country’s total consumption, as per the report titled ‘The $2 Trillion Opportunity: How Gen Z is Shaping the New India’ by. Boston Consulting Group (BCG) and Snapchat.

Gen Z buys as many times as millennials and is 1.5 times more likely to research their purchases. One of 4 Gen Z are already in the workforce, by 2025 every 2^nd Gen Z will be earning. The report claims that 45 per cent of businesses recognize Gen Z’s potential, however, only 15 per cent act to actively address them indicating a huge opportunity.

Additionally, Gen Z is into ‘shopcializing’, meaning sharing shopping experiences with their inner circle via photos or video calls. This phygital blend of online and offline shopping is so seamless that one out of two Gen Z are likely on the phone checking wish lists or creator pages online while in-store-far surpassing the 32 per cent of millennials. They’re 1.7 times more likely to choose trending styles when shopping over brands, with 72 per cent of Gen Z shoppers turning to creators’ social channels as their go-to for shopping inspiration.

Commenting on the findings from the report, Pulkit Trivedi, managing director, India, Snap Inc, said, “Gen Z will be the biggest contributor to India's consumption growth driving $1.8 trillion worth of direct spend by the year 2035. In partnership with the Boston Consulting Group, we are excited to share deep insights on the economic potential, values and shopping behaviour of GenZ in India. As a platform that serves the Gen Z audience, we look forward to working with brands and businesses to harness this growth potential.”

"Gen Z is already driving 43 per cent of India’s consumer spending. Their influence is not limited to select categories – it cuts across categories ranging from fashion, eating out, to automobiles and consumer durables. It therefore for marketers to take note that this generation is driven by unique values and beliefs and therefore have distinctive purchase behaviours, however we noticed that only 15 per cent of brands we spoke to are actively taking steps to tap into this opportunity. For businesses, understanding and authentically engaging with GenZ isn't just good to have; it's necessary for winning today and will be imperative for survival tomorrow,” said Nimisha Jain, senior partner and managing director at BCG India.

The findings of this report are based on primary research done with about 1000 parents to assess the right degree of influence and ~1200 Gen Zers and millennials to discern their defining values and purchase behaviour.

Fibre2Fashion News Desk (SG)