India's Gen Z population (aged 18 to 26) are motivated by their future ambition, with research suggesting that this generation has adopted financially savvy lifestyles, with 91 percent stating the importance of savings to reach their goals.
Mintel, a leading market research expert, has indicated that this generation is goal-orientated with ambitions to own homes and cars and travel abroad at a young age, all of which they are determined to achieve through their financial suave.
Saptarshi Banerjee, a senior lifestyle research analyst for Mintel Reports India, said that as this generation grapples with an uncertain future, they are resolute in their quest for financial self-reliance, demonstrating a keen interest in products that offer significant value for their investment.
"This demographic, many of whom are navigating transitional life stages and without a steady income yet, presents an opportunity for brands. The key to winning them over lies in providing cost-effective, innovative products, enhancing consumer engagement with fun deals (e.g. gamification) and crafting unique experiences," said Banerjee.
Seventy-seven percent of Gen Z consumers have dreams of becoming homeowners, with 59 percent dreaming of buying a car early in life and 55 percent wanting to travel abroad.
Over a third save from their pocket money and rely on parental support for spending (38 percent and 35 percent, respectively).
Gen Z consumers are keenly aware of saving for financial independence, with 88 percent believing getting the best deal on every purchase is necessary.
However, key issues that Gen Z is commonly concerned with, such as social and ethical issues, present challenges, as many find it difficult to incorporate their values through sustainable habits. Over eight in ten Indian Gen Zs are concerned about these issues, with 81 percent supporting local brands. However, only 27 percent have reduced their utility waste in the last six months, compared to 32 percent of Younger Millennials (aged 27-33 in 2023).
A further 55 percent of Gen Zs believe most sustainable claims are false.
"Brands can empower these young customers in their efforts towards equality and localism, encouraging them to adopt eco-friendly habits while educating them on sustainable initiatives."
Banerjee continued that brands can meet these consumer expectations by using local ingredients and flavours, promoting original content, highlighting socially-minded initiatives, and providing credible evidence of sustainability to avoid green-washing allegations.
This generation also faces a multitude of worries, including soaring inflation and other economic uncertainties like job cuts. In March 2023, the Mintel Economic Tracker data showed that 12 percent of Indians aged 18-24 described their financial situation as 'tight'. Further Mintel research suggested that Gen Z consumers prioritise value-based purchases to ensure sound personal finance.
"Gen Z consumers regard affordability and value as paramount. According to Mintel Trend International Spending, consumers seek innovative solutions and brands while maintaining their living standards."
To cater to this, brands can innovate existing products to enhance longevity or flexibility. They can also help young consumers learn new skills and develop an interest in specific categories such as cooking, fashion, and beauty.
