Brands, Take Note: Gen Z Is India's Trillion Dollar Opportunity!
Vipasha Joshi
Advisor and Consultant in the Creator Economy | Founder - Creator Chronicles and The Creator Coven | LinkedIn Top Voice 2023 |m | Xoogler | Ex-Jellysmack
If you’re a reader of Creator Chronicles ,you know I’m a passionate advocate for Gen Z. It’s hard to ignore the blatant disregard many brands have for this dynamic generation, which is not only larger than the entire U.S. population but also brimming with influence and potential. Ignoring them feels downright blasphemous, especially when brand strategies should be tailored to resonate with this new audience.
That’s why I was thrilled when Snap Inc. . and the æ³¢å£«é¡¿è°˜è¯¢å…¬å¸ (BCG) joined forces to crack the code of Gen Z—the generation that everyone’s eager to engage. Their mission? To unravel the behaviors, values, and expectations of this transformative cohort and provide a roadmap for brands aiming to remain relevant in our fast-paced world.
The result is more than just a report; it's practically a playbook for brands aiming to make a splash in India's youthful and dynamic market.
Let’s dive into why this report matters, why Gen Z is shaking things up, and how brands can catch the wave.
Why Gen Z Is the Real MVP for Brands in India
In a country bursting with youthful energy, Gen Z is the biggest cohort—472 million strong and growing. Forget the future, Gen Z is owning the present, setting trends, and making decisions that are changing the landscape for brands every single day.
- Economic juggernaut in the making: Sure, they may still be testing the waters of financial independence, but don’t be fooled—Gen Z’s influence is already a force to be reckoned with. They’re the ones nudging family spending decisions, from the latest gadgets to that splurge-worthy vacation, and their sway over sectors like tech, fashion, and lifestyle is only getting stronger.
- Trendsetters and changemakers: Growing up in a whirlwind of tech innovation and social movements, Gen Z is not about to sit back and watch; they’re at the forefront, demanding action. Whether it’s rallying for sustainability or redefining fashion standards, they’re the ones setting the agenda.
Decrypting the Gen Z Code
So, what juicy insights did Snap and BCG uncover? Their report goes beyond just numbers and charts; it’s about understanding how this generation thinks, interacts, and influences. Here are some key takeaways:
- Born digital: Gen Z doesn’t remember a time before the internet. Their idea of “normal†is a world where everything is just a swipe or tap away. The report sheds light on how they prefer snackable, visual content that grabs their attention instantly—think AR lenses, stories, and viral reels.
- Content is king, values are the throne: More than ever, Gen Z chooses brands that don’t just sell things but stand for something—whether it's mental health advocacy, sustainability, or social justice. The report shows that value-driven brands are winning hearts and shopping carts.
- Social media as life’s dashboard: For Gen Z, social media isn’t just a pastime; it’s their go-to for everything from news and trends to product recommendations. Platforms like Snapchat, Instagram, and Shorts are basically their life’s dashboard.
The Spending Power of Gen Z
Don’t be fooled by their young age and relatively modest purchasing power—Gen Z is calling the shots, and their influence reaches far beyond their own bank accounts.
- Riding the youth economy wave: Globally, Gen Z is expected to wield a spending power of $143 billion. In India, they’re increasingly splashing out on things that align with their values, from sustainable fashion to digital services that promise convenience and experiences over possessions.
- Experience over everything: While millennials might have splurged on cars and gadgets, Gen Z is all about experiences. Whether it’s exclusive events, travel, or subscription services, they’re chasing memories, not just material things.
Social Habits: Purpose, Passion, and Authenticity
For Gen Z, social habits are driven by what they stand for—and they’re not shy about it. They’re a generation with a purpose, and they expect brands to walk the talk.
- Social activism at the core: Nearly 77% of Gen Z believes in putting their money where their values are, supporting brands that are vocal about social causes like climate change and mental health. Brands that don’t keep up risk becoming obsolete in the eyes of this purpose-driven cohort.
- Mental health takes center stage: Gen Z has brought the conversation around mental health into the spotlight, making it cool to talk about self-care and wellness. Brands that embrace these discussions authentically earn major kudos from the community.
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Social Media Habits
Snapchat and BCG’s report points out that Gen Z doesn’t just scroll; they engage. They’re using social media not just to stay connected but to express themselves, advocate for causes, and discover new brands.
- Influencers are the new celebs: For 70% of Gen Z, influencers are the gateway to discovering new products and trends. Social media isn’t just for sharing—it’s for shopping, learning, and getting inspired.
- Short-form rules the day: With famously short attention spans, Gen Z is all about that quick-hit content. Platforms offering bite-sized, visually stimulating content like Shorts and Instagram Reels are thriving.
Why Gen Z Isn’t Just a Younger Millennial
While millennials saw the dawn of the digital age, Gen Z has never known anything else. They’re not just “younger millennialsâ€; they’re a whole different breed, with unique habits and expectations.
- Digital natives by birth: Millennials might have witnessed the internet’s evolution, but Gen Z was born in the thick of it. They’re faster to adopt new tech and more discerning about which platforms are worth their time.
- Mission-driven shoppers: While millennials may have been swayed by brand legacy, Gen Z is more likely to ask, “What do you stand for?†before reaching for their wallets. They’re willing to shell out extra if it means supporting brands with a purpose.
How Brands Are Missing the Mark (and How to Fix It)
Despite their obvious importance, brands are still struggling to connect with Gen Z in meaningful ways. Here’s where many are going wrong and how to course-correct:
- Outdated advertising techniques: Traditional ads feel like background noise to Gen Z. They want real connections, not sales pitches. Brands need to make interactions more personal, more meaningful, and yes—more fun.
- The inclusivity gap: If your campaigns don’t reflect the diversity Gen Z lives and breathes, don’t expect them to resonate. Inclusivity isn’t optional; it’s the baseline.
- Missed opportunities in co-creation: Gen Z doesn’t just want to be sold to; they want to be part of the brand journey. Brands should involve them in content creation, product design, or even social challenges.
Gen Z Is Changing the Game
Gen Z isn’t just calling for change—they’re making it happen. Brands that get it are embracing this new wave of engagement, evolving from talking at consumers to collaborating with them.
- The co-creation craze: Want to build loyalty? Let Gen Z in on the action. Whether it’s crowdsourcing ideas or letting them shape product development, involve them and watch your brand love skyrocket.
- Driving social impact: Gen Z has set the bar high when it comes to social responsibility. Brands that align with the generation’s commitment to sustainability and inclusivity are better positioned to gain long-term loyalty.
- Building community: Beyond transactions, brands that foster communities where Gen Z can connect and engage with like-minded people will see more organic growth and advocacy.
Future-Proofing Your Brand Strategy
To truly connect with Gen Z, brands need to think outside the box and beyond traditional campaigns. Here are some winning strategies:
- Embrace augmented reality (AR): AR isn’t just a gimmick; it’s a gateway to creating unforgettable experiences. Think Snapchat’s AR filters that let users try before they buy or engage with content in interactive ways.
- Short-form video or bust: It’s not just about being on Instagram it’s about creating content that’s catchy, visual, and shareable. Think beyond ads—create challenges, how-tos, or behind-the-scenes content.
- Partner with influencers that reflect Gen Z values: The more niche and authentic, the better. Work with creators who don’t just have reach but also truly resonate with Gen Z’s culture and causes.
- Deliver experiences, not just products: Think VIP access, community events, or even digital experiences that can’t be found elsewhere. The goal is to make Gen Z feel special and part of an exclusive club.
- Transparency is non-negotiable: Whether it’s your brand’s sustainability efforts or your supply chain practices, Gen Z wants the real story. No fluff, just facts.
Gen Z Isn’t the Future; They’re the Now
The report drives home a crucial point: Gen Z isn’t just another demographic; they’re the pulse of today’s culture and commerce. Brands that understand their preferences, values, and digital habits will thrive. As India’s youngest generation continues to drive change and shape trends, staying relevant means evolving with them. So, brands, it’s time to step up and play by Gen Z’s rules.
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4 个月Gen Z age range is one of the leaders in my YT channel analytics and India one of my leading audiences. Yes, India is an awesome country with such a humble culture with cuisine to die for. But these young folks are definitely blazing the trail! ??
Advisor and Consultant in the Creator Economy | Founder - Creator Chronicles and The Creator Coven | LinkedIn Top Voice 2023 |m | Xoogler | Ex-Jellysmack
4 个月Here is a link to the full report - https://newsroom.snap.com/how-gen-z-is-shaping-the-new-india