India’s ‘swipe-up’ generation set to swipe right on festive deals, driving sales this season

Brands in India are set to strike gold with Gen Z this festive season, as the “swipe-up” generation is expected to drive the nation’s shopping spirit and boost sales for the industry.

In this three-month festive window, consumer spending is seen to skyrocket and online shopping will boom, creating a golden opportunity for brands to engage this app-first generation.

Indian consumers are expected to increase their spending by an average of 47 per cent, with an average budget of Rs 25,000, Dhruv Dhawan, Head Ads, Disney+ Hotstar, India, said.

But what makes this generation, often scolded by parents for being glued to their phones 24/7, the trailblazers of India’s online shopping scene?

The answer lies in the numbers. India’s swipe-up generation, born between 1996 and 2010, is the world’s largest according to a report by Bernstein. Indian Gen Zs make up 20 per cent of the world and about 27 per cent of India’s population, it noted.

ET OnlineThe country now has an estimated 175 million online lifestyle shoppers, making about six and seven transactions per year, with one in three belonging to Gen Z.The average budget for Gen Z this coming season is Rs 23,000, as per the findings of Disney+ Hotstar’s festive sentiment survey 2024. India’s festive fervour
Indians are going to go all in this festive season as they plan to spend across various categories, with apparel and fashion (28%), mobile phones (28%), and beauty and wellness (25%) leading the list, according to the third edition of Disney+ Hotstar’s festive shopping sentiment survey 2024. Additionally, a significant portion of the budget is allocated for tech upgrades, particularly 5G-enabled mobile phones and smart TVs.E-commerce websites will remain the go-to destination for Indians, with 59 per cent of shoppers opting for online purchases. The dominance of online ads will also be further cemented with 58 per cent of buyers relying on them for product information.

Gen Zs and their “loyalty”
There has never been a better time for brands in India and the shopping spree of Gen Z in the coming season might as well be their added bonus (and not a small one, given the numbers.)

Gen Zs have significant headroom in consumption, contributing to about 17 per cent of India’s total consumption.

If a brand is loyal to Gen Z, Gen Z will be loyal to the brand, Sunder Balasubramanian, Chief Marketing Officer, Myntra told ET Online in an interview.

Gen Z shoppers buy eight to nine times a year as opposed to their millennial (people born between 1981–1996) counterparts who buy five to six times a year, as they are exposed to global trends and their cycle of adoption is very quick, Nandita Sinha, chief executive of Myntra told ET.

This itself is a great indication of the kind of “impact that they can drive,” Balasubramanian added.

“FOMO” pushing Gen Z to spend more?
If a brand is trending, then it is likely to have piqued this generation’s attention as it thrives on staying updated with the latest designs and real-time viral trends. But this is not it.

“In addition to expressing their identity, financial independence is crucial,” said Myntra’s CMO.

Contrary to the belief that they lack disposable income, over 70 per cent of Gen Z engage in side hustles, making them an exciting audience for brands.

Gen Z behaviour has helped scale up internet use cases driving monthly or daily active users (MAU/DAU) growth across app ecosystems.

The not-so ‘lowkey’ social media influence

The Gen Z generation that swipes up for practically everything shopping, dating, food delivery, has subtly (lowkey in Gen Z terms) been shaped by social media.

“D2C brands are scaling faster versus traditional FMCG (3-4 years vs 10 years) led by the buying power of Gen Z customers. They have been able to target Gen Z customers through social media,” Bernstein report said.

India is the world’s largest footprint for Meta across their app universe (Facebook, Instagram, WhatsApp, FB messenger), it said, adding that quick commerce platforms like Blinkit and Zepto are enabling digital-first brands to reach GenZ customers, rapidly driving growth.

Millennials to join the mega bandwagon
If Gen Zs are set to become the driving force behind India’s consumer spending this festive season, then millennials will serve as the steering wheel.

As per Disney+ Hotstar’s Dhawan, millennials’ average budget this coming season is Rs 27,000 i.e. 17 per cent higher than that of Gen Z.

While these adjacent generations share a keen appetite for shopping, their consumption behaviours, preferences, and adoption styles vary distinctly.

The Bernstein report observed, “GenZ prefer categories which are app-first digitally-native and prefer categories like quick commerce, food delivery, short-form videos, EdTech, athleisure, co-living, new age D2C brands,”

This is very different from ‘millennials’ who prefer e-commerce, multiplexes, OTT, casual wear, and renting; and ‘Gen X’ who veers towards offline retail, malls, kiranas, office wear, Bollywood movies, buying houses/ real estate, or the baby ‘boomer generation’, which goes for kiranas, home food, traditional wear and are more inclined towards savings.

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