Gen Z rewriting retail rules, and brands turn the spotlight on this evolving consumer landscape
Gen Z, the digital natives born between 1997 and 2012, are rapidly emerging as the key consumer segment in India. With their unique preferences and behaviors, they're keeping fashion retailers on their toes and prompting a wave of innovation and adaptation.
Gen Z, the ‘Vibe’ shoppers
As per Bain & Co. and Myntra, India has almost 60 million Gen Z shoppers who actively buy online. This demographic holds a significant 20-25 per cent share of the online lifestyle market, valued at approximately $4 billion in gross merchandise value (GMV). As per Mint, the Gen Z segment is poised for significant growth. In terms of spending behaviour, while Gen Z shoppers spend less per transaction than millennials (an average of $7-8 vs. $14-16), they make up for it with higher shopping frequency, averaging 8-9 purchases annually compared to the national average of 5-6. No wonder, Myntra, the leading online fashion platform, aims to grow its Gen Z shopper base from 16 million to a remarkable 40-45 million in the next few years.
Gen Z shoppers are known for their distinctive style and preferences. They are trend-conscious and heavily influenced by social media, constantly seeking the latest styles and looks. Their signature style often leans toward athleisure, with oversized trousers, t-shirts, sweatshirts, crop tops, and sneakers being popular choices. They are not afraid to experiment with different looks and express their individuality through fashion. What’s more they are budget-minded, they prioritize value and are drawn to online-first brands that offer trendy styles at affordable prices.
Retailers firm up strategies to woo GenZ shoppers
Indeed, with such a big segment in the market, GenZ are in focus for most brands and retailers. Many are adopting various strategies to attract GenZ consumers. For example, fashion retailer Myntra has introduced a dedicated section called 'FWD' for Gen Z shoppers, offering curated looks and collections aligned with their tastes. The platform also provides budget-friendly options starting at Rs 499. Sunder Balasubramanian, Marketing Officer at Myntra explains, five years later, every brand will need to cater to this demographic because they would be a very big business. We’ve made some progress, going from 8 million Gen Z shoppers to 16 million now. The future for us is how do we go from 16 million and add another 20 million to 25 million in the next couple of years.
Max Fashion known for its budget friendly offerings has partnered young influencers and launched new private labels to appeal to Gen Z's 'vibe-driven' shopping behavior. As Sumit Chandna, President, Max Fashion told Mint, “This consumer doesn’t shop like their predecessors. They are forever roaming the market. Whatever vibes with them, they will pick it up as and when they see it. As a result, legacy brands have to reinvent and reposition themselves continuously.”
Madame a popular women’s brand is repositioning itself to cater to Gen Z's experimental nature and secure their loyalty for the long term. Stores and collections have been revamped to create a more youthful appeal. As Akhil Jain, Executive Director, Madame opines, this demography will be their future customers in the next five years, hence they need to catch them early.
The moot point is, Gen Z is a rapidly growing and influential consumer segment in the fashion industry. And retailers need to adapt to their preferences, focusing on trendy styles, athleisure, value, and online-first brands. And catching Gen Z early is crucial for long-term customer loyalty and growth.
