A new report from Boston Consulting Group (BCG) and Snap Inc. sheds light on the remarkable spending power of India’s Gen Z, highlighting a demographic poised to transform the nation’s economic landscape. Titled “The $2 Trillion Opportunity: How Gen Z is Shaping the New India,” the report reveals that Gen Z’s direct and influenced spending is currently valued at a staggering $860 billion.
With approximately 377 million individuals, Gen Z represents India’s largest generational cohort, accounting for an impressive 43% of the country’s total consumption. Projections indicate that their spending could reach $2 trillion by 2035, demonstrating their critical role in shaping the future economy, as reported by CNBC TV-18.
The breakdown of Gen Z’s spending reveals that while $200 billion comes from direct purchases, an astounding $660 billion is influenced by recommendations and social interactions. This showcases the power of peer influence and highlights the need for brands to engage this consumer base effectively.
The report further emphasizes Gen Z’s affinity for immersive visuals such as augmented reality (AR) and virtual reality (VR) content, with 77% of Gen Z users showing heightened engagement with such formats compared to only 56% of millennials. However, the opportunity remains largely untapped, with just 15% of businesses in India currently leveraging these insights, despite 45% acknowledging the spending potential of this demographic.
In addition to their preference for dynamic visual content, Gen Z’s shopping habits are heavily influenced by social interactions, a trend referred to as “shopcialising.” They often share shopping experiences via images and video calls and consult online creators while in stores, with 32% engaging in this behavior more frequently than millennials. Notably, 72% of Gen Z shoppers rely on trends and recommendations from online creators, showcasing a shift in purchasing behavior towards social media influence.
Pulkit Trivedi, Managing Director of India at Snap Inc., emphasized the significance of this young population: “India’s young Gen Z population is poised to shape the future of the country’s growth over the next two decades.” He added that **Gen Z will drive consumption growth, projected to reach $1.8 trillion in direct spending by 2035.
The findings in this report highlight a critical need for businesses to adapt their marketing strategies to meet Gen Z’s preferences for dynamic and visual-driven communication. As this influential consumer base continues to grow, brands must seize the opportunity to engage with Gen Z effectively to thrive in the evolving market landscape.
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