Report: Country's youngest generation 'Gen Z' will spend Rs 168 lakh crore by 2035
Report: According to a report by Boston Consulting Group (BCG) and Snapchat's parent company Snap Inc., India's Generation Z population is more than 37.7 crores. This is the largest generation ever to live in the country.
The youngest generation of the country that is born between 1997 and 2012, Generation Z also known as Gen Z. They are playing an important role in increasing consumption through its spending. This population will spend $2 trillion (about Rs 168 lakh crore), which will further accelerate consumption which is important for the country's economy by 2035.
A report by Boston Consulting Group and Snap Inc., the parent of Snapchat said that India's Generation Z population is over 37.7 crores - the largest in the country. The collective expenditure by this group accounted for $860 billion, or about 43 percent of India's total consumption.
It explains that out of $860 billion, this population spends about $200 billion on their own. The rest of the amount, which is $660 billion, is spent by other people on shopping influenced by their recommendations or preferences. The trend in spending by the Generation Z population shows that in 2035, it will reach the level of $2 trillion.
Pulkit Trivedi, Managing Director, Snap Inc., India, further said, "India is a young country with more than 377 million members of Generation Z. This population will create the future of India's development in the next two decades through consumption. By 2025, it is estimated that the Generation Z population will directly spend US$250 billion, while by 2035 this figure will reach US$1.8 trillion. According to the report, already one in every four members of Gen Z is employed. By 2025, every second Gen Z will have a source of income.
The report indicated that most businesses, despite the opportunities, have not taken advantage of Generation Z. Only 15 percent are actively taking steps to take advantage of them. As the Generation Z influence is "not bounded by a few categories like fashion, food and beverages to automobiles and consumer durables", according to Nimisha Jain, Senior Partner and Managing Director, BCG India, 80 percent of the Generation Z-ers use photos, GIFs, and immersive visuals to express themselves and connect with their circle.
