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Is Millennial and Gen-Z changing India's spending capability?
Whether you are a Millennial or a Gen-Z, you must have noticed how we went from getting a Rs 300 cable connection on TV to a Rs 600 Dish-TV connection for more channels and finally settled on Rs 999 for Netflix + multiple other platforms.
While most Millennial and Gen-Z is starting to earn, you see these subscriptions or in our parents’ words “faltu ke kharche” starts increasing. Even a few years back, if you would have asked me to pay to listen to music ad-free, I wouldn’t have done it, funny how now it is a part of my monthly bills. This is just one example, most of us shop online more than visit shops, be it for clothing, gadgets, or grocery.
But, what changed between now and then?
The generation before us saw cell phones for the first time and adapted to them. Our teenage days saw frequent visits to the internet cafe, the www boon made us more tech-savvy. We are early adopters of digital platforms and e-commerce, which has significantly impacted India's retail landscape. Online shopping, mobile payments, and digital wallets have become increasingly popular, providing more convenience and accessibility for making purchases.
Before we move forward, ask yourself a question - What do you do on the weekends?
Some answers that might have come up are - weekend getaways, cafe/pub hopping, fine dining or maybe spending time cleaning the house ( the aesthetics are worth it). This shows how much we focus on experiences, rather than just materialistic possessions. This saw the growth of businesses like Ikea, small businesses that make things for the “gram”, in turn aiding the growth of hospitality, tourism, and entertainment sectors in India.
Remember the handloom and handicrafts industry that was said will be dying soon? That isn’t going to happen! Thanks to the newer generation who is aware of environmental and social issues. ( You can name at least one time in your house that has the label “organic”). Millennials and Gen-Z tend to value sustainable practices and are willing to pay more for products and services that align with their values. As a result, businesses in India are adapting by offering eco-friendly and socially responsible options to cater to this consumer demand.
Do you remember how metered taxis, buses, and metro (only in metropolitan cities) used to be our traveling option? Booking a cab used to be very expensive, until the sharing economy gained traction. Concepts like ride-sharing services, co-working spaces, and peer-to-peer platforms have changed the way people spend on transportation, workspace, and other services. This has led to cost optimization and increased access to resources, contributing to a change in spending habits.
India changed from being a country where people didn’t think of generating revenue, to being the largest consumer of certain services and contributing 40% of revenue to some of the biggest names in the industry.
The workforce / earning population in India is high in numbers and pretty young in age. Apart from the above listed reasons, since the earnings have increased, it has also increased the spending capability and general standards of living. There are a lot of factors that come into play, be it the changing Indian rupee, or the 2020 covid period where people could work remotely and earn in a higher value currency (end up paying higher taxes and inturn growing the economy 😌). The role of the young generation is not only helping India, but a lot of other countries who has the highest consumer base coming from India (also thanks to our population).
Ending this with a hope that this growth will open doors to more opportunities for the entire country.
Note - This issue is just to highlight how the economy has changed for good and does not aim to target or promote anything. It is based on personal observations.
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