FILE PHOTO: Boston Consulting Group (BCG) and Snap Inc., have brought out a report that deep dives into Gen Z’s spending habits, and how they make purchase decisions. | Photo Credit: Special Arrangement
Boston Consulting Group (BCG) and Snapchat’s parent, Snap Inc., have brought out a report that deep dives into Gen Z’s spending habits, and how they make purchase decisions. The report titled, ‘The $2 Trillion Opportunity: How Gen Z is Shaping the New India,’ describes how this generation is shaping trends and experiences.
Gen Z in India totals to about 377 million, the largest generation in the country, and their collective spending is at $860 billion, which about 43% of the total consumption in the country. And this is projected hit $2 trillion by 2035.
While $200 billion of this is from direct spending, $660 billion is owing to influenced spending from recommendations.
Almost 80% of Gen Z depends on images, GIFs and immersive visuals to express themselves and connect with their friends while 77% of them find AR/VR visuals more engaging indicating that marketing for brands needs to move more in that direction.
Gen Z also tends to “shopcialise” more meaning they share their shopping experiences with their friends through images or video calls. They also tend to be checking creator pages online more while in the store, far more than millennials at 32%.
They also tend to prefer trends while shopping while 72% of them pick from online creators.
Despite the opportunities, most businesses haven’t capitalised on them with only 15% businesses actively leveraging these findings. Meanwhile, 45% of them have registered their potential to spend.
Commenting on the findings from the report, Pulkit Trivedi, Managing Director, India, Snap Inc., said, “India is a young nation with a 377 million Gen Z population which will shape the future of India’s growth in the next two decades. Gen Z will be the biggest contributor to India’s consumption growth driving $ 1.8 Trillion worth of direct spend by the year 2035.
Published – October 16, 2024 08:03 am IST
