Swipe, select, but spend smart: How Gen Z is redefining consumption

By all indications Gen Z is a disruptive audience for whom each experience must be unique and devoid of any inhibitions; they push the marketer to the limits of innovation. That’s one of the central findings of the BT-PRICE Gen Z Consumption Behaviour Survey, too. Given their size in terms of actual numbers and the ability to spend, most companies have a robust Gen Z strategy. This is not the first time consumer research has thrown up an insight that leads to the birth of an idea. Fevicol Shoeflix is a case in point. A close look at NCCS A homes—a housing classification used by the National Consumer Classification System (NCCS), which is widely used in India for market research, media planning, and audience segmentation—revealed that the average Gen Z consumer had 10-12 pairs of sneakers. Given the high disposable incomes, that was not a surprise. In fact, the sneakers worn were determined by the occasion. “It could be for badminton, cricket, party or just hanging out with friends,” says Sandeep Tanwani, CMO, Pidilite Industries, the entity that owns Fevicol, Dr Fixit, M-Seal, Araldite and Roff brands, among others. Sandeep Tanwani, CMO, Pidilite Industries“There is a flaunting value in sneakers, which have a high emotional value as well,” he says. This led to the launch of Fevicol ShoeFix, an adhesive specially designed for DIY shoe repair. Obviously, a new approach is needed for a new generation. To him, the Gen Z audience comes with a lot of spending power. “They define cultural trends, and a big difference compared to other cohorts is how they want to spend for an experience,” says Tanwani, who confesses to having seen some Gen Z folks owning 50 pairs of sneakers. CRACKING THE CONSUMER The Gen Z cohort exists across the world, but India, as always, is writing its own story. The heterogeneity of our population, a high proportion of youth and technology bridging every conceivable divide across regions make the opportunity quite irresistible. “It is important to understand that within Gen Z, there are multiple cohorts just with respect to age,” says Anand Kumar Jaiswal, Professor of Marketing at the Indian Institute of Management (IIM) Ahmedabad. A lot of time has gone into analysing how Gen Z is different, and he identifies a combination of “information capital and digital skill” to describe them. “The power of economic capital in the past lay with the parents. Now, information moving away is a marked change.” For instance, it is obviously a digital-native cohort. “They have never seen an offline world, and with information, they influence purchase decisions in both traditional and high-value product categories. It includes fashion, personal products, food and automobiles,” says Jaiswal. Priya Nair, CEO &amp; MD, Hindustan UnileverOne must look to artificial intelligence (AI) to grasp that point. To him, it is not used just as an information tool, but to make comparisons, sift through multiple sources of information, and come up with detailed information that is incisive and stands out. “Look at a category like cosmetics, where the conversation is now around chemicals and ingredient sources. That is understood well by parents, making them also well-informed,” he adds. The large companies are acutely aware of that. At the second quarter earnings call for FY26, Hindustan Unilever’s (HUL’s) CEO &amp; MD, Priya Nair, spent time outlining how her company, the big boy of the fast-moving consumer goods industry, will reimagine its core brands. Specifically, she picked beauty, a key part of HUL’s portfolio, and the view was that it was not enough to have just higher brand equity. Ashish Goupal, CEO – India Core Business, Marico“Today, we have almost 400 million Gen Z consumers in India, and they are indeed driving change and transformation. So, we reimagine the brands. We need them to be more modern and more youthful,” she said. Importantly, Nair said brands need to be examined comprehensively—from packaging and positioning to product and renovation—across both core offerings and premium innovations, to stay relevant in a changing India. Clearly, this requires a very incisive and nuanced understanding, one that is different from how marketing was done in the past. Ashish Goupal, CEO – India Core Business, Marico, outlines how his company, known for brands such as Parachute, Saffola, Nihar, Livon and Set Wet, believes that the Gen Z cohort “is particularly interesting from a business opportunity perspective” as it seeks brands that reflect their identity, values and fast-paced lifestyles. “They just don’t demand relevant products but crave authenticity. Their preference for digital engagement and experiential consumption opens new avenues for innovation and growth,” he says. The BT-PRICE Survey analysed purchase behaviour of the Gen Z cohort, found a clear decision hierarchy, driven “primarily by product quality, value perception and brand trust, rather than impulse or trend-following.” Among metro residents, graduates and higher-income groups, this emerges as the single most important purchase driver. “Price and value for money matter most at lower income levels but steadily decline in importance as income and education rise,” the survey found. Nitin Saini, VP (Marketing), Mondelez IndiaIt’s not for nothing that marketers spend a lot of time understanding Gen Z. “The sheer size makes it attractive. Pluss they drive premiumisation,” says Nitin Saini, VP (Marketing), Mondelez India. Its Cadbury Silk Desserts range is one example. Biscoff cookies, he explains, were more unique and helped Mondelez expand the premium portfolio. INDIA’S COMPLEXITY Multiple consumer groups in the fastest-growing economy globally mean there is a need to remain flexible. Product life cycles have shortened. The rapid rise of direct-to-consumer (D2C) brands shows how much the market has changed. D2C brands can launch, test, and adapt products faster than traditional players through bypassing intermediaries, using digital channels, and relying on real-time consumer data. And therein lies the complexity. Goupal thinks Gen Z challenges traditional marketing by demanding personalisation, digital-first experiences and, of course, authenticity. In his view, the ability to amplify narratives online makes them a powerful force. The rise of social media as a primary discovery and engagement platform, the shift towards influencer-driven content and a growing emphasis on sustainability and inclusivity are making brands rethink how they connect with consumers. The BT-PRICE study found social media plays a decisive but selective role in shaping Gen Z consumption. “As many as 22% purchase frequently after seeing products on social media, and a larger share (38%) do so occasionally, indicating social platforms function more as consideration-stage nudges than direct sales triggers,” it states. Social media accounts for as much as 41% of primary internet use, especially among those in the lower-income bracket and in Tier II centres. “Online shopping remains a secondary activity, suggesting that Gen Z separates discovery and transaction journeys across platforms. Overall, this a cohort that is digitally immersed but increasingly discerning, engaging deeply with content while exercising restraint at the point of purchase,” it adds. In the absence of a precedent or any serious comparison, more effort is needed to understand Gen Z. Raagjeet Garg, Director (Consumer Products Division), L’Oréal India, calls it a “fascinating group” since it represents a fundamental shift in the Indian consumer DNA. From his position, he thinks they view beauty not as luxury for special occasions but as a daily tool for self-expression. “They are the curious explorers of the beauty world and not loyal to products just because their parents used it but being hungry for the new. This makes them a high-growth engine as they constantly enter new categories like mascara, sunscreen, serums earlier and more frequently than previous generations,” says Garg. Within Gen Z or for that matter, within the same age bracket, interests and preferences can be remarkably different. Mondelez’s Saini speaks of how Cadbury 5Star, a well-known brand in his portfolio, took the counter-culture route with its “Do Nothing” campaign on Valentine’s Day. “The insight was around how youth are facing pressure to be a part of the trend. Now, they could let go of the FOMO (fear of missing out) factor.” In line with Gen Z, the media plan also must be very different. “Just that 30-second ad will not be enough and must be complemented by effective storytelling. Digital is a big part of the piece, and one must look at the time spent by Gen Z on social media,” he says. Of course, digital allows for specific targeting. “In the case of Silk desserts, we can reach out to consumers who are dessert lovers.” The mobile phone is a key to Gen Z, and Garg says the “unboxing” for them starts long before they touch the physical product. “It is first on the phone, and we realised that to win them over, a product needs to be worthy of stopping them from doomscrolling.” For the Maybelline Colossal Bubble Mascara, L’Oreal, instead of just running commercials, built an immersive Bubble Land to allow them to step into the brand’s world. To appeal to this audience, Marico has spent time on product innovation to modernise its legacy brands. In the case of Parachute Advansed, trending ingredients such as rosemary and argan oil in lighter textures are used. “We have introduced convenient formats like Saffola Cuppa Oats for on-the-go lifestyles and launched trial-friendly packs for Livon. The process involves blending consumer insights with innovation, ensuring products are functional, stylish and aligned with Gen Z’s aspirations for self-expression and convenience,” says Goupal. The part on brand loyalty starts to get a little intricate here. Jaiswal thinks the route to get there will change, and the language is about consumer engagement. “We are really speaking of sharing videos, them going viral or reviews. In this ecosystem, consumer loyalty is challenging to build and sustain,” he says. If language is critical, no less important is lingo. Pidilite employed AI for its Fevikwik campaign. Using KwikGPT, it fuses random objects that consumers choose to make them quirky innovations. “It is important to learn the Gen Z lingo,” says Tanwani. That led to terms such as dumbbell heel and time waist. For a long time, Pidilite has come to be known for quirky advertising. “Humour makes the brand human and is shareable.” Ganapathy Balagopalan, Head of Strategic Planning, Ogilvy, the agency that handles Pidlite and 5Star among others, maintains that on lingo, the rule is simple: speaking their lingo is not the same as using their slang. Language takes many forms, among which are targeted digital campaigns or a different brand experience. Speaking directly to their lifestyles, points out Goupal, is one approach his company has taken. The Holi campaign for Parachute Advansed Gold had a playful musical track created with young influencers to resonate with Gen Z. For Set Wet, it was decided to collaborate with leading gaming creators to drive awareness and consideration for its styling range, to target young males in their native environment. “Young brands like Set Wet and Livon are kept fresh, dynamic and aligned with Gen Z’s evolving mindset,” adds Goupal. LOOKING AHEAD HUL’s Nair, during the earnings call, also highlighted rural transformation as an exciting prospect. Within this, she highlighted “road infrastructure, better electrification, tap water in every home or indeed digital” as truly transforming how consumers become aware of new propositions, new brands and new products. “Therefore, for HUL, it is very critical that we span across this price-product benefit pyramid, transforming our core brands in line with these consumers.” Goupal maintains that the initiatives taken by Marico go beyond any conventional approach. “It must be understood that they (Gen Z) influence cultural trends, drive rapid adoption of new platforms and expect brands to engage meaningfully across social, gaming and influencer ecosystems,” he says. The onus on marketers is evident. “They have to adjust to a new reality and must adapt. Else, they run the risk of irrelevance,” maintains Jaiswal. According to him, the 4 Ps (product, price, place and promotion) will remain, though AI and new technology will change the process of decision making. In the past, the emotional route was often the clincher and ensured brand loyalty over time. “Gen Z is open to multiple choices and looks closely at the pros and cons. The cognitive route is one that they easily take,” he says. In the new and free-spirited India, the strength of Gen Z has to be one of the most remarkable stories. There is clearly a long tail to this most interesting story. @krishnagopalan

Swipe, select, but spend smart: How Gen Z is redefining consumption

The purchase behaviour of India's Gen Z reflects a decision hierarchy, driven by product quality, value perception and brand trust, rather than impulse or trends