The Rise of the Experience Economy
For millennials and Gen Z, happiness is less about what you own and more about what you do. This mindset is fuelling a boom in the “experience economy.” A recent report found that a staggering 78% of Indian consumers now prefer spending on experiences
rather than physical products. This isn't just about lavish holidays; it includes everything from weekend workshops and wellness sessions to music festivals and live concerts. The live events market alone is a multi-crore industry, reflecting a deep-seated desire among younger audiences to participate, connect with communities, and create shareable moments. This trend shows a clear recalibration of priorities, where investing in memories and personal growth is seen as a more valuable use of money than simply acquiring material goods.
Digital First and Socially Driven
Young Indians are true digital natives, and their financial habits reflect this reality. Unified Payments Interface (UPI) isn't just a convenience; it's the default mode of transaction for everything from street food to subscriptions. This digital fluency extends to how they shop. Discovery no longer happens in a mall; it happens on social media feeds and through influencer recommendations. This has paved the way for a Direct-to-Consumer (D2C) revolution. Brands born online—offering everything from skincare and cosmetics to fashion—are thriving because they speak the language of authenticity and engage directly with their audience, building a sense of community that legacy brands often struggle to replicate.
Values Over Valuables
Today's young consumer is also a conscious one. There is a growing preference for homegrown, sustainable, and ethical brands. Many are willing to pay a premium for products that align with their values, whether it's environmental accountability, clean ingredients, or transparent sourcing. This has led to a surge in demand for organic products, cruelty-free cosmetics, and fashion labels that prioritise ethical production. In fact, a significant number of young shoppers say they would boycott brands that fail to meet sustainable standards. This isn't just a niche trend; it's a fundamental shift, pushing companies to prove they stand for more than just profit.
A New Relationship with Credit
Unlike previous generations who viewed credit primarily for large, planned purchases or emergencies, younger Indians see it as an everyday enabler. The rise of Buy Now, Pay Later (BNPL) services has been instrumental in this shift. BNPL offers frictionless, small-ticket credit at the point of sale, making discretionary spending more accessible, especially for those new to formal credit. This allows them to spread out payments for everything from fashion to electronics without the commitment of a traditional credit card. While it fuels consumption, it also reflects a desire for financial flexibility and control, managed primarily through mobile apps.
The Travel Bug Bites Differently
Travel is a top priority, but the nature of it has changed. Young Indians, particularly Gen Z, are planning to significantly increase their travel budgets. However, they are also value-conscious, often preferring multiple shorter trips over one long, expensive holiday. Solo travel is on the rise, driven by a desire to recharge and explore independently. When travelling, spending is focused on the complete experience: shopping remains a major expense, but so are dining and local transport, indicating a desire to immerse themselves in the destination. This generation is also generous, with many expressing willingness to pay for trips for their family and even friends, framing travel as a shared investment in relationships.
