In an era defined by rapid technological advancement, India’s Gen Z is leading the charge in a revolutionary shopping trend known as phygital. A study conducted by Snapchat and the Boston Consulting Group (BCG) reveals that Gen Z, born between 1997 and 2012, is the largest generation in India, fundamentally reshaping consumer behaviors by blending physical and digital shopping experiences.
What is Phygital Shopping?
The term phygital, coined by Chris Weil in 2007, encapsulates the hybrid approach to shopping that this generation embraces. Rather than strictly adhering to online or offline channels, Gen Z seamlessly navigates between the two. For instance, it’s common for these digital natives to browse products on their smartphones while physically in stores, conducting research and comparison shopping in real time.
According to the study titled The $2 Trillion Opportunity: How Gen Z is Shaping the New India, Gen Z often initiates their shopping journeys online but may choose to complete their purchases in physical stores or vice versa. This fluidity allows them to make informed purchasing decisions, enhancing their overall shopping experience.
Social Shopping: A Collective Experience
Unlike previous generations, Gen Z views shopping as a social activity. They actively involve friends and family in their purchasing decisions, sharing photos and discussing options before finalizing their choices. This social aspect is essential for brands looking to connect with this demographic. Influencers and content creators have become vital touchpoints, acting as “search engines” that guide Gen Z’s buying habits, emphasizing trends over brand loyalty.
Pulkit Trivedi, Managing Director, India, at Snap Inc., emphasizes the importance of engaging with Gen Z across multiple touchpoints throughout their shopping journey. “Our platform offers the opportunity for brands to engage with Gen Z to drive key business and brand outcomes,” he notes.
The Economic Impact of Gen Z
With a staggering 337 million individuals in this age group, Gen Z significantly influences the Indian economy. The study reveals that this generation impacts $860 billion of consumer spending across various categories, from snacks to automobiles. Currently, one in four Gen Z members is already in the workforce, and projections indicate that within a decade, every second Gen Z individual will be earning.
Gen Z’s shopping habits are not just about consumption; they reflect deeper values. While they hold traditional customs in high regard, they are also twice as likely as millennials to engage in protests for causes they believe in, highlighting a more activist-oriented mindset. Furthermore, around two-thirds of them are optimistic about their future, showcasing confidence in their financial stability, health, and social environments.
Conclusion: Embracing Phygital Shopping
As phygital shopping becomes the norm, brands must adapt to the unique preferences of Gen Z. Understanding their desire for a blended shopping experience, social engagement, and trend-driven choices will be crucial for businesses aiming to thrive in this new landscape. By embracing the phygital trend, brands can build stronger connections with this influential generation, paving the way for a more innovative and dynamic retail environment in India.
