MUMBAI: Each generation displays unique shopping and spending habits shaped by lifestyle choices and economic influences. Younger consumers, such as Gen Z, favour frequent, smaller transactions, while Gen Y and Gen X balance transaction frequency with higher-value purchases in key categories. In smaller towns, transaction frequency declines across generations, but spending patterns diverge: Gen Z’s average transaction values drop, Gen Y’s remain steady, and Gen X’s spending actually rises.
Dentsu and PhonePe have published a report called ‘The Bharatiya Consumer: A Generational Study’.
When it comes to spending across generations, Gen Z leads in sectors like food, beverages, retail, and hospitality, highlighting their preference for frequent indulgences and experiences. Gen Y’s spending is more diverse, contributing significantly to entertainment, financial services, and commuting. Gen X, with a more focussed approach, invests heavily in high-value categories such as financial services, healthcare, and agriculture. This multi-generational landscape underscores how age, lifestyle, and location intricately shape the consumer economy in India.
This report explores India’s consumer landscape, driven by a youthful demographic under 40 fuelling dynamic market trends. Gen Z favours frequent, small transactions, while Gen Y and Gen X emphasize higher-value purchases. Gender-based shopping patterns, spending shifts across town classes, and the role of smartphone ownership are highlighted. Key category contributions show Gen Z leading in indulgences like food and retail, Gen Y in entertainment and commuting, and Gen X in financial services and healthcare.
India, or Bharat as it is known in its truest essence, stands as one of the world’s most youthful nations, with a substantial portion of the population under 40. This demographic diversity is profoundly shaping the consumer landscape. A large working-age population fuels high demand across a spectrum of sectors—from lifestyle and technology to healthcare, financial services, and luxury goods. The purchasing patterns and lifestyle choices of these younger consumers are rapidly reshaping traditional markets, creating a dynamic, trend-driven environment.
“India—our Bharat—is on the cusp of a new era. From every bustling market to every quiet village, there’s a hum, a pulse—a shared energy fueled by a young generation that’s eager to shape a future as bold as their dreams. In these pages, you’ll find a window into Bharat as it truly is: vibrant, layered, and alive with possibility. At dentsu, we believe that progress is born from listening, from honouring every voice and every story. With our commitment to ‘Innovating to Impact’, we’re not just gathering insights; we’re turning them into actions that resonate with Bharat’s journey, reflecting the heart and spirit of this incredible nation. I invite you to explore this journey with us. Feel the rise of a nation” said Harsha Razdan CEO, dentsu, South Asia.
“At PhonePe, we’ve witnessed firsthand the incredible transformation of the Indian consumer. This book, ‘The Bharatiya Consumer: A Generational Study,’ is a fascinating exploration of this evolution, delving deep into the distinct characteristics of Gen X, Y, and Z. It’s more than just demographics; it’s about understanding the aspirations, behaviours, and preferences that shape how this dynamic population interacts with the digital economy.
“As a leading digital payments platform, PhonePe has been at the forefront of this journey. We’ve seen the shift from cash-based transactions to the seamless convenience of digital payments.
“This generational study is a valuable resource for anyone invested in understanding the “Bharatiya Consumer.” For businesses like PhonePe, it helps us tailor our offerings to resonate with specific needs and preferences. It allows us to develop features that are user-friendly across generations, fostering financial inclusion for all.
“This book is more than just a market analysis; it’s a testament to the dynamism of the Indian consumer. It’s a story of dreams, aspirations, and a generation shaping their future with a single tap. As we move forward, understanding the ‘Bharatiya Consumer’ is key to unlocking the full potential of India’s digital transformation,” said Shivani Srivastava head of Ads, PhonePe.
