India’s Gen Z, comprising 377 million individuals, is emerging as a major economic force, contributing $860 billion to consumer expenditure, which is 43% of the country’s total. A report by Snap Inc. and Boston Consulting Group (BCG) reveals their rising influence across sectors, from fashion to automobiles.
Titled “The USD 2 Trillion Opportunity: How Gen Z is Shaping the New India,” the report outlines Gen Z’s spending power and its projected growth. It highlights that their collective spending is set to reach $2 trillion by 2035, including both direct and influenced spending, underscoring their economic potential.
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Currently, direct spending by Gen Z amounts to $200 billion, primarily from employed individuals in this group. This figure is expected to grow to $250 billion by 2025, as more members join the workforce. By 2035, direct spending could soar to $1.8 trillion, reflecting their increasing purchasing power.
The report emphasises that Gen Z’s influence on family spending also plays a vital role, with many dependent members actively impacting purchasing decisions. This generational shift implies that by 2035, Gen Z will be driving half of consumer spending, transforming the economic landscape.
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Despite their significant spending power, the report notes that only 45% of businesses recognize Gen Z’s potential, and a mere 15% have adapted their strategies accordingly. This presents a unique opportunity for brands to connect more effectively with this influential demographic.
To capitalise on this potential, the report advises brands to rapidly innovate with trends, integrate social interaction during the shopping journey, provide visually immersive experiences, and engage with key influencers. Adapting these strategies could help brands tap into the immense spending power of Gen Z.
