Vinita Bhatia
Oct 16, 2024

Shopcialising: The secret to building last bonds with Gen Z consumers

To win over these buyers, brands must move beyond trends and tap into the power of social connections, which shape their shopping decisions and loyalty.

Gen Z drive an impressive $200 billion in retail consumption today. Image source: Freepik
Gen Z drive an impressive $200 billion in retail consumption today. Image source: Freepik

In India, Gen Z is making waves not just with their cultural clout but with their wallets, too. Pune’s Aryaa Shinde, 20, is a prime example of the new-age shopper. A sneakerhead by passion, he made the trek from Pune to Mumbai last December to attend the second edition of the ‘Myntra Creator Fest x Snapchat’, an event fusing fashion and tech. One thing caught his eye more than the rest: an augmented reality (AR) filter on Snapchat that allowed attendees to try on sneakers and buy them directly from Myntra.

“I loved this filter because I do a lot of shopping online, most of which is influenced by what I see on Instagram and Snapchat,” Shinde told Campaign. And he’s not alone.

Gen Z’s unique shopping habits, shaped by social media and digital tools, are redefining how brands need to approach their marketing, especially online.

The Gen Z power shift: A force to be reckoned with

According to a recent report by Snap Inc. and the Boston Consulting Group (BCG), Gen Z—those born between the mid-1990s and early 2010s—comprise a staggering 377 million individuals in India. Even more remarkable is their growing financial clout, with spending power estimated at $860 billion today, projected to soar to $2 trillion by 2035.

Nimisha Jain, senior partner and managing director at BCG India, observed that this generation is already responsible for 43% of India’s consumer spending, cutting across categories as diverse as fashion, eating out, consumer electronics, and even automobiles.

What makes this generation particularly powerful is their approach to shopping: a seamless blend of the digital and the physical, often referred to as ‘phygital’. “Gen Z is reshaping the purchase journey by integrating both online and offline experiences into a single, cohesive process,” explained Jain. “About 54% of this generation shop online while physically in-store, and they rely heavily on their inner circle for recommendations, with 70% seeking feedback from their peers before making purchases.”

Social media: The new shopping mall

It’s no secret that Gen Z spends more time on social media than previous generations, but their interactions go far beyond socialising. Platforms like Instagram, Snapchat, and YouTube have become pivotal parts of their shopping journey.

Pulkit Trivedi, managing director—India of Snap Inc, highlights this trend. “For Gen Z, social interaction and shopping are deeply intertwined. They make decisions based on real-time feedback from their communities, and their loyalty is driven by authentic brand experiences,” he explained.

His insights align with the findings from the Snap-BCG report, which identifies five critical strategies for brands to successfully tap into Gen Z’s spending habits. First, brands need to be “trend-first,” always innovating and staying on top of what’s new. Second, they must build a truly omnichannel experience to accommodate Gen Z’s habit of switching between online and offline touchpoints.

Pulkit Trivedi, managing director—India of Snap Inc.

Kanika Sanghi, partner and director at BCG India, reinforces the need for brands to go beyond simply offering products. “Gen Z thrives on visuals and craves simplicity. For them, it’s not just about shopping online, but about having a visually immersive experience that is fun, quick, and interactive. Brands that can deliver this will stand out in a cluttered marketplace,” she told Campaign.

The importance of being real: Authenticity above all

For marketers, one of the most challenging aspects of capturing Gen Z’s attention is their demand for authenticity. This generation can spot an inauthentic brand from a mile away, and they aren’t afraid to call it out.

Brands need to ensure that their messaging is not only engaging but also true to their core values. “Gen Z gravitates toward brands that align with their own beliefs,” said Trivedi. “They want to know that the companies they support are genuine in their actions and transparent in their business practices.”

Gen Z’s purchase journey is about catching their attention in unexpected ways. Bedroom essentials company, MyMuse, has learned that traditional funnels don’t work. Instead, it sells a lifestyle, not just a product, by weaving its brand into fun, downtime content that doesn’t feel like a sales pitch.

“We’ll introduce new products by focusing on employee personalities or real-life moments rather than polished ads. The challenge is mastering different platforms—Instagram and Snapchat are fast, personal, and demand content that feels spontaneous. It's less about perfection and more about being relatable​​,” MyMuse’s co-founder Anushka Gupta told Campaign.

Anushka Gupta, co-founder, MyMuse.-founder

This demand for authenticity is accompanied by a sharp sense of social responsibility. If a company’s values don’t match those of Gen Z, they risk being ‘cancelled.’ This culture of boycotting brands that don’t align with personal or societal values is something marketers need to be acutely aware of, especially in a world where word-of-mouth—be it through social media or otherwise—travels fast.

Visual storytelling: The key to Gen Z’s heart

Gen Z’s shopping journey isn’t just about convenience or price; it’s about the experience. They value innovation and are always looking for new ways to interact with products.

For brands, this means finding creative ways to connect with consumers through visual storytelling. Snapchat’s AR lenses, for example, offer users a playful way to try on products and interact with brands.

Sanghi notes that visually immersive experiences can help drive much greater engagement with Gen Z: “Whether it’s through AR or other interactive tools, the more visually captivating the experience, the more likely it is to resonate with this generation.”

In fact, a Snap lens for Britannia’s Croissant Challenge turned out to be a hit, engaging users with a fun, gamified AR lens. Similarly, Ajio’s *Big Bold Sale* took advantage of Snapchat’s full-funnel approach, using an AR lens to create buzz and drive revenue. These examples show how brands can leverage new digital tools to enhance the shopping experience, making it more dynamic and engaging for young consumers.

Instagram and Snapchat allowed MyMuse to move Gen Z from inspiration to loyalty quickly by creating content that feels like it belongs in their downtime—casual, fun, and human. The company claimed that it has seen success by focusing on the personalities behind the brand rather than just pushing products.

“We create relatable reels and stories that subtly introduce our products while focusing on experiences and lifestyle. Each platform has its own vibe, so we tailor our strategies accordingly, making sure our content reflects the fast, authentic, and interactive nature of these platforms​​,” Gupta said.

Trends over loyalty: The battle for attention

Gen Z’s approach to brand loyalty is another puzzle for marketers. Unlike previous generations, they are not tied to a single brand. Instead, they prioritise what’s trendy and relevant at the moment. According to Trivedi, trends are 1.7 times more important to Gen Z than brand loyalty, and this creates a challenge for brands looking to build long-term relationships with these consumers.

But it’s not all doom and gloom for marketers. While Gen Z may be trend-driven, they are also open to trying new products. In fact, 76% of them are willing to experiment with new brands. This presents an opportunity for businesses to continually innovate and adapt their offerings to stay relevant in an ever-changing landscape.

To capture Gen Z’s attention, brands need to go beyond fleeting trends and focus on creating lasting connections. As Trivedi puts it, “Seven out of ten Gen Z'ers are deeply connected to their inner circle, and this social connection extends to their shopping habits through 'shopcialising.' Brands need to tap into these social dynamics to build both relevance and long-term relationships.”

What’s next: The future of Gen Z shopping

As Gen Z continues to gain financial independence, their influence on India’s consumer market will only grow. Today, they drive an impressive $200 billion in retail consumption, and according to the Snap-BCG report, this figure is set to increase by $1.8 trillion over the next decade.

For brands that can successfully engage with this generation, the rewards are immense. But to do so, they must be willing to rethink their strategies, offer immersive experiences, and most importantly, stay authentic.

Trivedi sums it up best: “To engage effectively, companies must foster deeper, purpose-driven connections. As Gen Z enters the workforce and increases their spending, brands that adapt and innovate to meet their evolving needs will build long-term loyalty.”

In the end, the race to capture Gen Z’s attention is not about who shouts the loudest, but who listens and responds to their unique values, habits, and desires. Brands that understand this will not only survive but thrive in this fast-paced, trend-driven market.

Source:
Campaign India

Related Articles

Just Published

3 hours ago

India dazzles at Campaign Asia-Pacific’s Women to ...

Three Indian women shine among 34 trailblazers transforming Asia-Pacific’s marketing and communications landscape.

5 hours ago

Streaming TV: Advertisers' new go-to for engaged ...

Magnite’s latest research highlights its impact on ad recall, trust, and purchase intent, offering new possibilities for brands in India.

6 hours ago

The sound track to successful digital marketing ...

From fusion music to personalised playlists, the right music selection will be the key to success of digital marketing campaigns in the near future, says Hoopr.ai's chief marketing officer.

7 hours ago

How click-to-chat ads on Whatsapp are transforming ...

A closer look at how brands use WhatsApp Click-to-Chat ads with AI bots to boost engagement, streamline campaigns, and drive personalised, data-driven marketing.