A recent study reveals how family expectations, personal preferences, and regional traditions influence festive spending among India’s Gen Z consumers, with significant implications for the retail market.
NEW DELHI — A comprehensive study conducted by YouGov in collaboration with Rukam Capital has shed light on the spending habits of India’s Gen Z consumers during festive seasons. The report, entitled ‘Gen Z: A Deep Dive into India’s Most Influential Consumer Cohort’, reveals a complex interplay of cultural traditions, family expectations, and personal preferences that shape shopping behaviors across various states in India.
The findings indicate that approximately 60% of Gen Z respondents reported increased spending during major festivals, with 25% spending significantly more and 35% spending somewhat more. This trend is particularly notable in North India, where 65% of respondents from Delhi and Punjab reported higher festive expenditures. Rajasthan follows closely, with 63% of respondents indicating similar spending patterns, underscoring the region’s robust consumer culture during festivals.
Festive Spending Patterns and Regional Differences
The study highlighted notable regional differences in spending habits among Gen Z consumers. In the northern states, family-led consumption is increasingly prominent, whereas southern respondents show a preference for personalization alongside traditional practices. In the eastern states, the trend leans towards digital discovery and spontaneous purchases, while western respondents tend to favor experience-oriented choices. Central India appears more value-conscious, with a growing interest in AI-driven discovery methods.
Nationally, the combination of planned and impulse purchases significantly shapes festive spending. About 40% of respondents described their festive expenditures as a blend of planned and spontaneous purchases. This mix is particularly evident in states like Odisha (53%), West Bengal (45%), and Karnataka (44%), highlighting diverse approaches to budgeting among young consumers.
Key Categories of Festive Expenditure
According to the report, fashion, food, and gifting emerged as the leading categories for festive spending, each accounting for 49% of reported expenditures. Other notable categories include traditional or religious items (35%) and home décor (33%). State-level findings reveal distinct priorities in consumption. For instance, Chhattisgarh leads in fashion spending at 61%, while Bihar shows a preference for food items at 59%.
In Punjab, food spending (54%) and gifting (48%) are particularly strong, while southern states like Telangana also prioritize food (56%) alongside fashion (53%). Meanwhile, Delhi stands out for spending on traditional items (43%) and gifting (42%). This regional variation illustrates how local customs and preferences significantly influence consumer behavior during festive seasons.
Gifting Preferences and Evolving Trends
Gifting remains a central aspect of the festive season, with parents and family members being the most frequent recipients, cited by 74% of respondents. Friends, partners, and younger relatives follow, with responses of 61%, 39%, and 31%, respectively. However, the specific categories of gifts vary by state, with food items, cash, and personalized gifts emerging as popular choices.
For instance, food gifting is particularly prevalent in Haryana (54%) and Delhi (49%), while cash gifts are favored in Chhattisgarh (48%) and Madhya Pradesh (47%). The report indicates a notable trend towards personalized gifting in Andhra Pradesh (41%) and Odisha (40%), suggesting a shift towards unique, tailored presents that reflect individual preferences. Additionally, digital gifting is gaining traction, especially in Bihar and Andhra Pradesh, where 24% of respondents reported using online platforms for gift selection.
Motivations Behind Overspending
Beyond preferences for specific products, the study indicates that various emotional and social factors play a significant role in driving festive overspending. Family expectations emerged as the primary reason, cited by 34% of respondents, followed by discounts (29%), emotional connections (28%), and a desire to treat oneself (25%). The influence of premium products was noted by 22% of respondents, while 19% mentioned gifting obligations as a factor in their spending behavior.
Geographically, family expectations were most pronounced in Odisha (42%), while discounts had a strong impact in Chhattisgarh (37%). Emotional connections were particularly significant in Telangana (35%) and Punjab (33%). The report highlights how these diverse motivations demonstrate the complexity of festive spending among Gen Z consumers, which is shaped by both personal desires and broader social pressures.
Conclusion
The YouGov and Rukam Capital study, which surveyed 4,002 Gen Z respondents aged 18–29 across 18 states in India, illustrates that while Gen Z shares common festive occasions, their motivations, preferences, and spending behaviors vary considerably across regions. This insight is crucial for retailers aiming to engage effectively with this influential consumer cohort during festive seasons. Understanding these regional dynamics will allow businesses to tailor their marketing strategies and product offerings to better meet the needs and desires of young consumers.
