Gen Z can change the picture of consumption trends, ready to bring big changes: Bernstein

The digitally savvy and app-first generation Gen Z is set to bring about a major shift in consumption trends and is making a significant mark in India's consumer markets, according to a report on 'India Internet' by Bernstein.

People born between 1995 and 2010 are included in Gen Z. According to the report, various brands are trying to build a deeper connection with this generation. This generation uses mobile for everything from social media to taking a taxi and ordering food.

The report says that the number of Indian Gen Zs is the highest in the world. They do everything online, be it shopping, work or ordering food. Indian Generation Z is 20 percent of the world's total population and about 27 percent of India's population. This generation has a share of about 17 percent in India's total consumption and there is a lot of scope for growth.

Prefer new age brands

The report states that major changes are being seen in consumption trends, which are dominated by Gen Zs. Such as the expansion of short-form content (Instagram, YouTube Shorts) ... preference for quick commerce delivery i.e. delivery in 15-20 minutes (Blinkit, Zepto), the rise of D2C brands, the discovery of new food choices through food delivery apps (Zomato, Swiggy). This has led brands to build deeper relationships with Gen Zs.

Gen Zs are preferring digital-first and new-age brands. The report said, "D2C brands (3-4 years old) are growing faster than traditional FMCG brands (10 years old) due to the buying power of Gen Z customers. They are reaching out to customers of this generation through social media. These trends are seen benefiting companies that are digital-first and are focusing on high consumption sectors.

Gen Zs, Millennials and Gen X: How their behaviours and preferences differ

The report also highlights that there is a difference in consumption behaviour, preferences and adoption among the 3 primary consumer groups - Gen Zs, Millennials and Gen X. Gen Zs prefer categories that are app-first digitally-native. They prefer categories like quick commerce, food delivery, short-form video, edtech, athleisure, co-living, new age D2C brands. Millennials prefer e-commerce, multiplexes, OTT, casual wear and renting. On the other hand, Gen X prefers offline retail, malls, grocery, office wear, Bollywood movies, home/real estate shopping. They prefer home food, traditional attire and are more inclined towards saving.