India’s Gen Z is going Phygital: Here’s what that means for shopping

Move over, millennials, there’s a new money-savvy generation in town. With a staggering 377 million members, Gen Z is now the largest generation to have ever lived in India. Already influencing a staggering $860 billion in consumer spending, this cohort is expected to push that figure to $2 trillion within the next decade.

Gen Z has found a new way to show, and it's called ‘Phygital’.

'Phygital’ is the new way to shop

Meet the phygital shopper: someone who merges physical and digital shopping into one seamless experience. Whether it's scanning product reviews in a mall or watching a YouTube haul before hitting the street-side vendor, Gen Z is blurring the line between online and offline.

This is a great way to smart shop. According to a study by Snapchat and Boston Consulting Group (BCG), Gen Z is 1.5x more likely than millennials to research thoroughly before buying anything. But they’re not glued to e-commerce either. The real magic happens when we merge the ease of online shopping with the trust worthy experience of offline shopping.

Shopping isn’t a solo sport for this crowd. Whether it’s sending outfit options to the group chat or polling friends over DMs, Gen Z treats shopping like a team activity. They want feedback, they want opinions, and they want them in real-time.

Influencers, not advertisers, are their go-to “search engines.” If a reel says it's worth it, it probably ends up in the cart—virtual or physical. Brands aren’t necessarily passé, but trends drive the wallet more than logos do.

Gen Z is not just about aesthetics

You’d be wrong to think Gen Z is just about the aesthetic. This generation puts purpose before purchase. They’re twice as likely as millennials to participate in protests and 1.5x more tuned in to mental health. Products, brands, and platforms that align with their social values score big.

One out of every four Gen Z Indians is already in the workforce, and by 2035, every second member of this generation will be earning. Their economic decisions are already shaping entire industries, from fast food to fintech.

And despite living through a pandemic, fluctuating job markets, and constant digital overload, two-thirds of Gen Z feel optimistic about the future.

Why brands should pay attention

If you're building a brand in India and not thinking about Gen Z, you're already behind. Whether it's a street snack or a sedan, “every second rupee spent” today has Gen Z’s fingerprint on it.