Winning Bizness Desk
Mumbai.India’s consumer market is undergoing a significant shift as Gen-Z, those born between 1997 and 2012, redefine the way people shop and spend. This generation no longer sees purchases as mere necessities but as extensions of identity and personality. According to Shashwat Goenka, Vice Chairman of RP-Sanjiv Goenka Group, companies are still designing strategies based on older consumer behaviour, even as the real market has already transformed.
Shift from possessions to personal growth focus
Goenka points out that earlier generations showcased success through ownership of assets like homes, cars, and gold. In contrast, Gen-Z is investing in what he calls an “internal portfolio.” This includes spending on fitness, personal care, and travel, reflecting a deeper focus on self-improvement rather than external display of wealth. As a result, sectors such as fitness, beauty, dining, and entertainment are witnessing rapid growth, driven by this shift in priorities.
Digital platforms accelerate consumption behaviour changes
A key driver behind this transformation is the rise of digital platforms and social media, which have amplified awareness and experimentation among young consumers. Gen-Z is emerging as one of the most aggressive spending cohorts, unafraid to spend but more conscious of value and brand identity.
Key traits shaping Gen-Z consumption include:
- Preference for experiences over material ownership
- High influence of social media trends and peer validation
- Strong awareness about brands and their values
- Willingness to experiment with new products and services
Companies rethink strategies beyond price and utility
The changing mindset is directly impacting corporate strategies. Companies can no longer rely solely on product utility or pricing to attract customers. Instead, the emphasis is shifting towards the experience a product offers and the identity it helps build. Goenka stresses that brands now need to attach a story, purpose, and lifestyle to their offerings.
This shift is leading to a clear divide:
- Brands adapting to Gen-Z are witnessing faster growth
- Traditional brands sticking to old models are falling behind
India’s young population ensures long-term trend continuity
With nearly 65 percent of India’s population under the age of 35, this transformation is not a short-term phenomenon. It is expected to shape the consumption landscape for years to come. The growing influence of Gen-Z means overall spending is likely to increase, but growth will increasingly depend on aligning with their behavioural patterns and expectations.
Gen-Z set to dominate consumption by 2035
The long-term impact of this shift is expected to be profound. Goenka estimates that by 2035, Gen-Z could contribute around Rs 185 lakh crore to India’s total consumption. This would mean that every second purchase in the country could be driven by this generation.
At its core, the challenge for companies is evolving:
- It is no longer about what they are selling
- It is about what they help consumers become
This transition signals a deeper transformation in India’s economic and cultural fabric, where consumption is increasingly linked to identity, aspiration, and personal growth rather than just ownership.
