Gen-Z takes centre stage as firms move away from millennials

India has an estimated 116 million Gen-Z consumers. In fact, two out of five urban Indian consumers aged between 15 and 55 years are Gen-Z. Gen-Z consumers, who are digital natives, are experiencing a youth that is “significantly" different from what any previous generation has experienced in India so far, marketers and researchers said during a webinar on Gen-Z on Wednesday.

“The generation has a high dependency on mobile and internet, which plays a key role in their social interactions. This strong and differentiated influence of social media is visible in this generation. The role of the internet has also moved up the funnel and is influencing Gen-Z consumers at a very early stage in their path. As a result, they are more likely to search online for products," Aditya Kaul, group account director at Kantar, said during the Market Research Society of India’s (MRSI) webinar on the rise of Gen-Z in India.

Gen-Zers are defined as those born between 1996 and 2009. Gen-Z is currently the second-youngest generation, preceded by millennials before and succeeded by Generation Alpha.

Gen-Zers will make up a quarter of the Asia-Pacific (APAC) region population by 2025, according to McKinsey.

Meanwhile, Indian Gen-Z is also high on individualism, low on regrets, and more self-appreciating than other consumer cohorts. This also translates into how they show up at work—Gen-Z is more inclined to switch jobs frequently while also searching for “balance" to pursue their own interests, researchers said. They are also quick to ditch any long-held ideas of brand loyalty in pursuit of cheaper deals online.

What distinguishes Gen-Z from other consumer cohorts is the socio-cultural context that they are born into, said Anjana Pillai, partner and India board member of Quantum Consumer Solutions.

Their parents experienced a liberalized India and have benefitted from its economic progress over the past two decades. “This is the first generation where consumption was actually encouraged and not curbed, so that makes them uniquely different from the previous generational cohort. What we also see is a democratized access to the digital space," Pillai said.

This digital access is, in fact, narrowing the difference between Gen-Z consumers in India’s small and large cities.

Thanks to greater smartphone affordability—Gen-Z consumers across markets have access to similar OTT content; influencers they follow on Instagram and YouTube are also similar. “The kinds of brands they wear, the kind of music that they listen to, there are lots of similarities, but what probably differentiates the small town Gen-Z from the metro Gen-Z is access to opportunities," Pillai said.

Meanwhile, for Gen-Z, creators and influencers who look like them and talk like them about their needs without an overt commercial hook are a big draw; in fact, they are as influential as celebrities for this consumer group. Across town class, YouTubers, comics and micro-influencers act as guides for exploring interest areas; they make the ‘aspirational life’ accessible to the masses, researchers said on Wednesday.

Even as spending powers rest with millennials—with the oldest millennial now turning 42-year-olds, younger consumer cohorts are visibly shaping consumer trends.

Earlier this year, online fashion portal Myntra said it is set to add 10 million Gen-Z shoppers over the next two years. Gen-Z has revolutionized fashion and beauty by embracing their authentic selves, perhaps more than any of their previous generations did, said Bindiya Bhatt, senior director of category management at Myntra.

“We recognize the influence that Gen-Z holds, especially in the fashion and beauty realm. Keeping these traits in mind, we introduced FWD, Myntra’s uber-trendy in-app proposition dedicated to GenZ," Bhatt said.

However, greater exposure to media also means this consumer cohort is constantly looking for, or getting inspired, by the next best thing.