Most Gen Z shoppers look to social media influencers for shopping inspiration

Gen Z, India's largest generation, is set to become a major force in the nation's economy, with its collective spending power projected to reach $2 trillion by 2035, according to a report by Snap Inc. and the Boston Consulting Group (BCG).

Generation Z, often called Gen Z or Zoomers, is the group of people born after Millennials and before Generation Alpha. Researchers and the media generally define this generation as those born from the mid-to-late 1990s to the early 2010s, typically between 1997 and 2012. Most Gen Z members are the children of younger Baby Boomers or Generation X.

37 crore members and counting

With 37.7 crore members, Gen Z already plays a significant role, accounting for 43% of India's total consumption across various sectors. Currently, their spending power stands at $860 billion, which includes $200 billion from direct spending (money they earn and spend themselves) and $660 billion from influenced spending, where they affect the purchasing choices of family and friends.

By 2025, Gen Z's direct spending is expected to rise to $250 billion, with one in four already part of the workforce. They particularly impact key industries like fashion, dining, and entertainment, making up 50% of total footwear spending, 48% of dining, 48% of out-of-home entertainment, and 47% of fashion and lifestyle.

This generation has distinctive shopping habits, researching their purchases 1.5 times more than Millennials and favouring trendy styles over brand loyalty. A significant 77% of Gen Z finds augmented reality (AR) and interactive content more engaging, prompting brands to create visually appealing experiences both online and offline.

Influence of social media

Furthermore, 72% of Gen Z shoppers look to social media influencers for shopping inspiration. Brands should collaborate with influencers who align with Gen Z's values and style, integrating their products into social content to build trust and attract younger consumers.

"Gen Z responds better to authentic, relatable content," said Pulkit Trivedi, managing director of Snap Inc. in India. "Ads on Snapchat generate 1.2 times more positivity than those on other platforms, leading to double the purchase intent."

Despite their clear influence, businesses have been slow to react. While 45% of brands recognise the importance of Gen Z, only 15% have actively engaged with them. This presents a significant opportunity for brands to innovate, create immersive experiences, and tap into Gen Z's rapidly growing consumer power.