Gen Z's Growing Influence on India's Luxury Market and Beyond
The recent student protests across India served as a stark reminder of Gen Z’s burgeoning influence within the country. The July demonstrations, sparked by exam paper leaks and job frustrations, culminated in the resignation of Union Education Minister Dharmendra Pradhan on July 25th, marking one of India’s most significant youth-led movements in decades and underscoring how this generation is shaping the nation’s future. For businesses, it confirmed that Gen Z is no longer just the consumer of tomorrow, but a powerful force today.
A Shift in Perception
Pranav Goswamy, 24, a stylist, creative director, and content creator who has collaborated with local labels like Dhruv Kapoor and Arpita Mehta, admits he previously underestimated his peers. “While I am a Gen Z myself, I did consider them to be very laid-back, and it was something that always worried me when I was looking to hire fashion assistants,” Goswamy says. “But perhaps that was down to stereotypes. Whatever I once saw as a negative has almost turned into a positive when it comes to self-awareness and self-assurance.”
The Economic Power of Gen Z
India is home to approximately 377 million Gen Z consumers, representing roughly 27% of the country’s population. According to a report from Boston Consulting Group and Snap, titled The $2 Trillion Opportunity: How Gen Z is Shaping the New India, this generation already influences 43% of Indian expenditure – equivalent to around $860 billion and projected to reach $2 trillion by 2035. “Gen Z still forms a smaller cohort of our customer base, but needs to be an increasingly important part of our customer acquisition strategy,” says Aria Parikh, 28, a merchandiser at Ensemble, a pioneering multi-brand retailer that works with homegrown labels founded by her family.
Digital Natives in the Luxury Space
Unlike millennials, who witnessed the arrival and expansion of international luxury brands in India, Gen Z has grown up with global brands already integrated into everyday culture. They have followed fashion weeks online, discovered designers through social media, and developed opinions long before stepping into a luxury store. “This is the first generation of digital natives coming into the luxury world, and they come armed with more information,” says Parikh. The generation’s outlook is also shaped by a distinctly Indian context: a confident homegrown fashion industry where local designers command the same attention as international luxury houses.
Changing Priorities in Luxury Consumption
Yet, the biggest shift Gen Z is bringing to luxury isn’t necessarily what they buy, but why they buy it. Sathyajit Radhakrishnan, CEO of Galeries Lafayette India and International Brands at Aditya Birla Fashion and Retail Ltd (ABFRL), notes that “Gen Z are looking beyond established brand names and are equally interested in a brand’s creative identity, cultural relevance, collaborations, and the story behind what they’re buying.” The first Galeries Lafayette India store opened in Mumbai in 2024, bringing one of the world’s best-known luxury department stores to one of the industry’s fastest-growing markets.