Gen Z is emerging as a dominant consumer force in India, with a population of over 377 million. A new report by Snap Inc. and Boston Consulting Group (BCG) explores the spending patterns and social values of this tech-savvy generation, unveiling insights into how they engage with brands, prioritize trends, and leverage their digital influence. Marketers, particularly in fast-growing regions like the Middle East, can leverage these insights to better connect with a similar demographic in their own markets.
Understanding Gen Z’s Economic Impact
The report, titled “The $2 Trillion Opportunity: How Gen Z is Shaping the New India,” highlights this generation’s growing economic clout. Gen Z in India wields a spending power currently estimated at $860 billion, projected to surge to $2 trillion by 2035. By 2025, every second Gen Z individual will be earning, reflecting their early entry into the workforce. Moreover, their unique preferences and high engagement levels drive significant spending across industries—from fashion and dining to technology and entertainment.
Consumer Patterns and Influences
Gen Z’s consumption habits reveal a shift in traditional loyalty, focusing on trends rather than brand names. They are 1.7 times more likely than previous generations to prioritize popular trends over brand loyalty. They actively research purchases and are likely to seek advice from close connections, with 70% relying on friends and family for recommendations. This “social shopping” phenomenon, or “shopcializing,” reflects Gen Z’s inclination for shared shopping experiences, often using images, GIFs, and video calls to document their choices.
The Role of Visual Content and Technology
Visual and immersive content is central to Gen Z’s shopping experience. The report finds that 77% prefer augmented reality (AR) and other interactive visuals, suggesting brands should prioritize AR experiences to engage this audience effectively. The trend of combining online and offline shopping, or “phygital” experiences, is strong; half of Gen Z frequently checks online wish lists or creator recommendations even while in physical stores.
A Disconnect Between Recognition and Action
While 45% of businesses acknowledge Gen Z’s potential, only 15% actively target this group with dedicated campaigns. This disconnect presents an opportunity for marketers willing to innovate. The report advises businesses to stay on top of trends, foster social interaction during the shopping journey, and offer seamless omnichannel experiences. As Gen Z’s consumption is projected to drive 43% of India’s total consumer spending by 2035, engaging this audience will be critical for long-term growth.
Key Takeaway for Marketing Managers
For Middle Eastern marketers, this report offers actionable insights on engaging a similar youth-driven audience. By adapting campaigns to reflect Gen Z’s visual preferences and social-driven shopping behaviors, brands can enhance their relevance in a digitally native market. Visual platforms like Snapchat, which resonates with Gen Z’s affinity for short, engaging content, may serve as effective channels for storytelling and direct engagement. Brands should prioritize immersive, socially interactive experiences to resonate with Gen Z’s values and preferences.
