Gen Z in India: A $2 Trillion Opportunity by 2035
Boston Consulting Group and Snap Inc. have released a report titled ‘The USD 2 Trillion Opportunity: How Gen Z is Shaping the New India.’ This report explores the spending habits of Gen Z in India, a group of over 377 million people. Currently, Gen Z’s spending is at USD 860 billion, making up 43% of India’s total consumption. By 2035, this is expected to reach USD 2 trillion.
Gen Z’s Economic Impact
Pulkit Trivedi, Managing Director of Snap Inc. India, highlights that Gen Z will drive USD 1.8 trillion in direct spending by 2035. By 2025, their direct spending is projected to be Rs 250 billion, with half of Gen Z in the workforce.
Spending Patterns
Gen Z conducts 1.5 times more research than Millennials before purchasing. They significantly impact spending in categories like footwear, dining, entertainment, and fashion. Of their USD 860 billion spending power, USD 200 billion is direct spending, while USD 660 billion is influenced spending.
Visual Communication
About 80% of Gen Z use images and videos to express themselves and share shopping experiences. Despite their influence, only 15% of businesses are leveraging these insights, though 45% recognize the potential.
Nimisha Jain from BCG India emphasizes the importance for marketers to understand Gen Z’s unique values and behaviors, as their influence spans various categories.
Doubts Revealed
Gen Z -: Gen Z refers to the generation of people born roughly between 1997 and 2012. They are known for being tech-savvy and having grown up with the internet and social media.
USD 860 billion -: USD 860 billion is a huge amount of money. It represents the total spending by Gen Z in India, which is about 43% of all the money spent by everyone in the country.
USD 2 trillion -: USD 2 trillion is an even larger amount of money. It is the expected spending by Gen Z in India by the year 2035, showing how much more they will spend in the future.
Boston Consulting Group -: Boston Consulting Group is a global management consulting firm. They help businesses make important decisions and understand market trends.
Snap Inc. -: Snap Inc. is a company that created Snapchat, a popular social media app. They are interested in how young people use technology and spend money.
Consumption -: Consumption refers to the amount of goods and services that people buy and use. In this context, it means how much Gen Z is spending on things like clothes and food.
Leveraging insights -: Leveraging insights means using information to make better decisions. In this case, it means businesses using what they know about Gen Z to improve their products and services.
