Vaidehi Bhargava
India’s Gen Z generation, which includes over 377 million individuals born between 1997 and 2012, is set to be a transformative force in the nation’s economy. According to a report by Snap Inc. and Boston Consulting Group (BCG), Gen Z’s influence on consumer spending is already significant, amounting to around $860 billion, or nearly half of India’s total consumption. This impact is projected to grow to an astounding $2 trillion by 2035, meaning Gen Z will drive half of all consumer spending in India.
Gen Z’s spending patterns and behaviors reveal some unique trends. Compared to previous generations, Gen Z is more likely to focus on trends over specific brands, and they highly value visual experiences. For instance, 77% of Gen Z find interactive visuals like augmented reality more engaging, which is influencing trends such as “shopcializing,” where they share shopping experiences with friends through images and videos. Moreover, their reliance on “inner circles” for advice—where 70% seek guidance from friends and family on purchasing decisions—demonstrates a collective approach to shopping and decision-making.
By 2035, Gen Z’s direct spending power alone is expected to hit $1.8 trillion. Already, one in four members of Gen Z are in the workforce, with nearly half expected to be working by 2035. This income, combined with their tech-savvy nature and preference for personalized and omnichannel shopping experiences, is prompting businesses to adapt their strategies. However, there is a disconnect: only 15% of brands are actively engaging this demographic, despite recognizing their potential impact.
For businesses, effectively reaching Gen Z will involve offering immersive and visually rich experiences, leveraging social and digital platforms, and connecting through influencers. Brands that adapt to Gen Z’s preferences and align with their values are likely to succeed in tapping into this generational shift in India’s economy.