‘Gen Z’s Phygital’ Shopping Experience: The New Trend Taking Over

A recent study by Snapchat titled “The $2 Trillion Opportunity: How Gen Z is Shaping the New India” highlights the unique shopping behaviors of Generation Z, revealing that these consumers are effectively merging online and offline shopping channels. Born between 1997 and 2012, Gen Z’s spending habits are characterized by a balance between digital convenience and traditional retail experiences.

Understanding ‘Phygital’ Shopping

The term “phygital” is at the core of Gen Z’s shopping approach, describing the seamless integration of physical and digital shopping experiences. Coined by Chris Weil, former CEO of Momentum Worldwide, in 2007, the term captures how Gen Z shoppers utilize their smartphones to browse or compare products while physically present in stores.

According to the study, “In their endeavour to be sure about their spends, Gen Z tends to take inspiration from and research across both online and offline channels seamlessly in their journey.” This demographic is equally likely to initiate a purchase online and complete it in-store, or vice versa.

Social and Trend-Focused Shopping

Unlike previous generations, Gen Z often views shopping as a social event. The study notes that they actively engage with friends and family during their purchasing decisions, frequently sharing photos and discussing options before making final choices. Furthermore, this generation prioritizes trends over brand loyalty, with influencers and content creators serving as vital resources for product discovery.

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

The Largest Generation in India

With 337 million individuals, Gen Z is the largest generation in India’s history, comprising one out of four members currently in the workforce. In the next decade, it is expected that half of this generation will be earning. Their spending significantly influences the market, impacting approximately $860 billion in consumer expenditures, which encompasses everything from snacks to automobiles. “Every second rupee spent today across categories is impacted by Gen Z,” the study notes.

Balancing Tradition and Modernity

The study also highlights that Gen Z holds traditional values in high regard, similar to millennials, but tends to put their unique spin on customs. Compared to millennials, they are twice as likely to participate in protests for social causes and 1.5 times more focused on mental health issues.

Despite facing economic and career uncertainties, two-thirds of Gen Z express optimism about their future, demonstrating confidence in their finances, health, and social environments.