As more of them enter the workforce and increase their percentage of overall spending, brands are vying for India’s 377 million Gen Zs, which is more than the entire US population.
According to a BCG and Snap Inc. analysis, Gen Zers already account for a sizable amount of a household’s consumption basket, accounting for 43 per cent or US $ 860 billion of all consumer expenditures.
About US $ 200 billion of this comes from their own income, with the remaining US $ 660 billion coming from influenced expenditures.
According to estimates, over 36 per cent of Gen Z will be employed by 2030, generating US $ 730 billion in direct spending and US $ 1.4 trillion overall. This is reason enough for companies to pay attention and plan.
In an effort to attract young members of Generation Z, e-commerce majors Amazon and Flipkart have also been acting quickly, opening distinct stores on their platforms specifically for this demographic. Flipkart has developed an app-in-app fashion platform called Spoyl for younger consumers, while Amazon Fashion offers a Next Gen store for Gen Zers. Myntra, a division of the Flipkart Group, also offers Fwd to Gen Z.
As digital natives, Gen Z is actually the e-commerce segment with the quickest rate of growth. For example, according to a company spokeswoman, one in three Meesho users is under 25. Zeba Khan, director of fashion and beauty at Amazon India, asserted that since the store’s opening, the company’s Gen Z consumer base had increased thrice.
“For fashion firms targeting Gen Z, India’s different demographics present a problem. Price sensitivity is a major consideration, as a substantial percentage of the population looks for economical and value-for-money solutions,” Khan said.