A study by Snapchat titled “The $2 Trillion Opportunity: How Gen Z is Shaping the New India” explores the spending habits of those who were born between 1997 to 2012 and shares insights on the way this generation functions.

What does ‘phygital’ mean?

The study calls the generation “truly phygital” in its shopping methods. The term “phygital” refers to a blend of both physical and digital shopping experiences, which is central to how Gen Z approaches shopping. The term was coined by Chris Weil, former CEO of Momentum Worldwide, in 2007. For example, many Gen Z shoppers are on their phones browsing or comparing products online even when shopping in physical stores.

“In their endeavour to be sure about their spends, Gen Z tend to take inspiration from and research across both online and offline channels seamlessly in their journey. Even though they are digital natives, they are very likely to start a journey online and complete the purchase offline or the other way around,” the study said.

The study also highlights that unlike millennials, Gen Z often treats shopping as a social activity, actively engaging with friends or family while making purchasing decisions. For example, sharing photos and discussing options before finalising a purchase.

India’s youth is also more focussed on trends rather than sticking to a brand and influencers and content creators act as “search engines” for them to buy a product.

“Our platform offers the opportunity for brands to engage with Gen Z across multiple touch points of their shopping journey to drive key business & brand outcomes,” said Pulkit Trivedi, Managing Director, India, Snap Inc.

Largest generation in India?

The study says that with 337 million people born between 1997 and 2012, Gen Z is the largest generation to ever live in India. One out of four Gen Z is already in the workforce and in 10 years, every second Gen Z member will be earning. Currently, Gen Z impacts $860 billion of consumer spending on everything from snacks to sedan. “Every second rupee spent today across categories is impacted by Gen Z,” the study said.

The study says Gen Z holds traditions in high regard, much like millennials, but about two-thirds of them put their own spin on these customs. It says that compared to millennials, they are 2 times more likely to join protests for causes and 1.5 times more likely to focus on mental health.

Despite economic and career uncertainties, two-thirds of Gen Z are optimistic about the future, showing confidence in their finances, health, and social surroundings.

(Also Read: Work-life balance over salary? 47% of Gen Z plans to leave jobs within two years)