New Delhi . India is considered a young nation. The country's 377 million population comes from Generation Z. Generation Z will be a major contributor to the country's consumption growth. Gen Z will be able to drive $1.8 trillion in direct spending by 2025, according to a report Wednesday.
In 2025, direct spending by Generation Z will reach $250 billion, according to a report by Snap Inc. in partnership with Boston Consulting Group (BCG). By this time every second Generation Z will be earning.
The collective spending power of Gen Z has reached $860 billion, which will increase to $2 trillion by 2035. Generation Z purchases at the same rate as Millennials. They do 1.5 times more research at their own expense.
Pulkit Trivedi, Managing Director, India, Snap Inc., said, “India is a young nation, with a Gen Z population of 377 million, who will shape the future of India's growth over the next two decades. As a platform serving Gen Z, We are ready to work with brands and businesses.”
Nearly 45 percent of businesses recognize the potential of Generation Z, but only 15 percent actively take action to address them, indicating a huge opportunity.
90 percent of Snapchat's daily active users are aged 1334, which shows that the platform has become a popular platform for youth in India.
Nimisha Jain, senior partner and managing director, BCG India, said, “Gen Z is already driving 43 percent of India’s consumer spending.
Their influence is not limited to select categories – it extends across categories ranging from fashion, food and beverage to automobiles and consumer durables.”
The report said that this dynamic group is affecting expenditure in different categories. Such as 50 percent of the total spend is being spent on footwear, 48 percent on food, 48 percent on outofhome entertainment and 47 percent on fashion and lifestyle.
The pattern of distribution of spending shows that currently, the total spending power of Generation Z is $860 billion. About $200 billion of this comes from direct spending (money they earn and spend themselves). The remaining $660 billion they spend on the basis of suggestions or preferences of others.
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Image Credit: KhasKhabar.