India’s Gen Z is redefining the country’s digital landscape with their unique taste, behaviours, and cultural preferences. A recent report by Boston Consulting Group (BCG) and Snapchat titled ‘The $2 Trillion Opportunity‘ sheds light on how this new generation is transforming consumer behaviour in India. Born between 1997 and 2012, this is the first ‘truly digital’ generation. Gen Z approaches life and spending habits with a very different mindset that is influencing industries from e-commerce to entertainment.
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We have listed down the key takeaways from the report focused on what brands and Gen Z creators need to know in order to thrive in this evolving environment.
- Gen Z is 377 million strong making it the largest generation in India.
- They have a spending power of $860 billion.
- 1 out of 4 Gen Z’s is already working and earning.
- Their purchasing power is equivalent to millennials but Gen Z is 1.5x likelier to research about their products as compared to the older generation.
- 73% of Gen Z’s embrace their imperfections and rather look at them as unique distinguishing factors.
- 80% of them communicate visually.
- It is estimated that by 2025, Gen Z’s direct spends will amount to $250 billion.
Meeting Gen Z Where They Exist
Gen Z’s relationship with technology is fundamentally different from previous generations. They are mobile-first consumers, spending most of their online time on smartphones. They rely heavily on apps for everything from entertainment to shopping. Social media platforms like Snapchat, Instagram, and TikTok dominate their screen time.
For brands, this means traditional marketing methods won’t cut it. Mobile-optimized content is key. Brands must focus on crafting engaging, visually appealing content that is short, snappy, and accessible through smartphones. Gen-Z creators who collaborate with brands should keep in mind that mobile-first formats, such as vertical videos, stories, and interactive content like polls and filters, are critical for capturing attention.
Actionable Tip for Brands: Use mobile-friendly formats like Snapchat Lenses, TikTok challenges, or Instagram Reels to tap into Gen Z’s need for quick, immersive experiences.
Authenticity and Transparency Are Non-Negotiable
Gen Z is acutely aware of corporate values and brand authenticity. According to the report, they prioritize transparency and are more likely to support brands that align with their personal values. Gen Z consumers appreciate it when brands address key social issues like sustainability, diversity, and social justice. They want to engage with brands that take a stand and genuinely reflect their beliefs.
For a Gen Z creator, authenticity rules. Influencers who build trust with their audience by being genuine, rather than overly polished, tend to resonate more with this generation. This means sharing personal stories, advocating for causes they believe in, being transparent about collaborations, unfiltered behind-the-scenes moments, and more.
E-Commerce Meets Social Commerce
The BCG + Snapchat report also highlights the rapid shift from traditional e-commerce to social commerce, where Gen Z is blending social interactions with shopping. Social media platforms like Instagram, Snapchat, and TikTok are becoming shopping hubs, allowing users to discover and purchase products seamlessly through the app.
Brands that integrate shoppable content into their social media strategies will have an advantage. From sponsored posts to live streams where viewers can instantly buy the products being featured, Gen Z expects a quick, real-time shopping experience.
The Power of Micro-Influencers
While global celebrities may have massive followings, the report suggests that micro-influencers often have a stronger impact on Gen Z. They possess smaller yet highly engaged audiences. This generation values the opinions of influencers who seem more relatable and approachable, making micro-influencers an important part of brand campaigns.
This is great news for upcoming creators. Brands are increasingly looking to partner with authentic voices who have high engagement rates, rather than just large follower counts. These partnerships tend to feel more personal and genuine, further fostering trust between the brand and its audience.
Actionable Tip for Micro-Influencers: Focus on building genuine connections with your followers and highlight how your values align with the brands you partner with.
Visual and Interactive Storytelling
The BCG + Snapchat report also concludes that Gen Z’s prefer visual content over text-heavy formats. Platforms like Snapchat and TikTok are built around short, immersive visuals that encourage users to engage. This generation loves interactive content – whether through augmented reality (AR), games, or polls. They expect to participate, and not just passively consume.
Actionable Tip for Brands: Create interactive AR filters or branded content on platforms like Snapchat that let Gen Z users engage with your products in a fun, personal way.
Embrace the Shift
As Gen Z continues to reshape the Indian market, brands must also evolve alongside them. The BCG and Snapchat report highlights the importance of mobile-first content, authenticity, and interactive, social shopping experiences, and more. By aligning with Gen Z values and adapting to their consumption habits, both brands and creators can thrive in this rapidly changing landscape.
