Insights
Unlocking the Essence of the Bharatiya Consumer: A Generational Insight
India is among the world’s youngest nations, with a significant population under 40. This vibrant demographic is reshaping the consumer landscape, blending traditional values with modern aspirations. The thriving working-age population fuels demand across sectors, while evolving habits and lifestyles of younger consumers transform markets into dynamic, trend-driven ecosystems.PhonePe has been a front-runner in witnessing the remarkable evolution of the Indian consumer, particularly the transition from cash-based transactions to the effortless convenience of digital payments. To delve deeper into how generational preferences, behaviours, and aspirations are redefining India’s digital economy, PhonePe, in partnership with Dentsu, presents The Bharatiya Consumer: A Generational Study.
This generational study explores the unique traits of Gen X (1965–1980), Gen Y (1981–1996), and Gen Z (1997–2012), shedding light on their evolving shopping patterns, priorities, and values. The study also showcases distinct personas of the Bharatiya shoppers across generations, exploring how each group’s values and priorities influences their buying decisions. This multi-generational landscape creates a rich tapestry of consumer behaviour that underscores India’s complex market.
The study reveals key insights into spending habits, showcasing variations across generations and regions:
- Gen X: Invests heavily in high-value categories such as financial services, healthcare, and agriculture.
- Town Class Behaviour: Spending increases as town class level decreases from metros to small towns
- Gender Behaviour: Males transact 17% more than females, rising to 26% in top metros
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Payment Behaviour:
- They transact 28% more frequently offline but spend 56% more online
- Males show higher frequency transacting offline than females
- Small metros transact online more frequently than top metros
- Gen Y: Gen Y’s spending is more diverse, contributing significantly to entertainment, financial services, and commuting.
- Town Class behaviour: Spending value remains consistent across town classes
- Gender Behaviour: Males transact 27% more frequently than females, rising to 41% in top metros
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Payment Behaviour:
- Gen Y transact 12% more frequently offline but spend 52% more online
- Females show higher frequency transacting offline than males
- Non-metros transact online most frequently, followed by small metros; top metros transact least frequently
- Gen Z: Gen Z leads in sectors like food, beverages, retail, and hospitality, highlighting their preference for frequent indulgences and experiences
- Town Class behaviour: Value of spends decreases as we move from top metros to small towns
- Gender Behaviour: Males have 22% higher transaction frequency compared to Females. In top metros, this difference increases to 37%
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Payment Behaviour:
- Transact 52% more frequently offline, they spend 45% more online
- Females show higher frequency transacting offline than males
- Small metros transact online more frequently than top metros
The study delves deeper into distinct personas, highlighting spending behaviors that define each generation. It serves as a crucial resource for anyone seeking to understand the Indian shopper, enabling businesses to craft tailored features and solutions that resonate with diverse audience groups and their unique needs.
For businesses, policymakers, and researchers, understanding the Bharatiya consumer is not just an opportunity—it’s a necessity for unlocking the vast potential of India’s digital transformation.
To explore these insights further, download the complete study here.
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