1 week Ago By Firstpost
A new report by Boston Consulting Group (BCG) and Snap Inc. revealed the immense spending power of India’s Gen Z. The report, titled “The $2 Trillion Opportunity: How Gen Z is Shaping the New India,” noted that Gen Z’s direct and influenced spending is already valued at $860 billion.
Gen Z, comprising around 377 million individuals in India, represents the country’s largest generational cohort. This demographic alone accounts for 43 per cent of India’s total consumption, with spending projected to reach $2 trillion by 2035, CNBC TV-18 reported. While $200 billion of Gen Z’s spending is direct, an additional $660 billion stems from purchases influenced by recommendations, the report says.
The report also found that 77 per cent of Gen Z users are particularly engaged by immersive visuals, such as augmented reality (AR) and virtual reality (VR) lenses, compared to just 56 per cent of millennials. This strong inclination towards immersive and varied visual content presents a unique marketing opportunity for brands seeking to capture Gen Z’s attention. However, only 15 per cent of businesses in India are currently capitalizing on these insights, despite 45 per cent recognising the demographic’s spending potential.
Beyond visual content, Gen Z’s shopping behavior leans heavily on social interactions, or “shopcialising.” They frequently share their shopping experiences through images and video calls, and many check online creator pages while in stores, with 32 per cent engaging in this behavior more than millennials. Trends and recommendations from online creators guide 72 per cent of Gen Z shoppers.
“India’s young Gen Z population is poised to shape the future of the country’s growth over the next two decades,” said Pulkit Trivedi, Managing Director of India at Snap Inc. “Gen Z will be a driving force behind India’s consumption growth, projected to reach $1.8 trillion in direct spend by 2035.
” The report underscores a pressing need for businesses to adapt to Gen Z’s preference for dynamic, visual-driven communication to tap into this influential and rapidly growing consumer base..
