Youngsters in nation are the new spendthrift

India, where the average age of the population remains youthful, is witnessing a notable shift in consumer behaviour. This transition is particularly evident in the preferences of younger demographics, typically ranging from late teens to early thirties. This batch of people hold significant sway over market dynamics and exhibits distinct consumption patterns characterised by a strong inclination towards digital engagement and technological savvy.

Influenced by social media and online platforms, they prioritise experiences over material possessions, driven by evolving lifestyles, aspirations, and rising incomes. These consumers are receptive to novel offerings and are drawn to brands that resonate with their values and interests. The rapid increase of e-commerce and digital payment systems has further streamlined their purchasing experiences, providing them with convenient access to a diverse array of products and services.

Recognizing the complexity of young consumer behaviour in India holds paramount importance for businesses and marketers aiming to tap into the purchasing influence of this demographic. By customizing their offerings to align with the distinct preferences and needs of young consumers, companies can effectively seize market opportunities and foster growth within India’s dynamic consumer landscape.

As reported by The Economic Times, the declining average age of Indian consumers purchasing items such as cars, premium smartphones, and large televisions over the past 5-6 years reflects a significant shift in buying patterns towards younger age groups. This trend reflects the increasing importance of catering to the preferences of this demographic.

India’s robust economic growth has translated into higher disposable incomes among younger consumers, enabling them to afford luxury items like cars, premium smartphones, and large televisions. This newfound purchasing power among young consumers has reshaped the market dynamics and presents lucrative opportunities for businesses targeting this segment.

The data reflects a significant transformation in consumer behavior and demographics across various product sectors in India between 2018-19 and 2023-24. According to the reports, major auto-mobile manufacturers have noticed a decline in the average age of car buyers, encompassing both standard and luxury vehicles. This average age has decreased from around the 40s to nearly the mid-30s within this period. Moreover, statistics indicate that a substantial majority, exceeding 70%, of purchasers of electric cars fall within the age range of their 20s and 30s. This indicates a growing influence of younger demographics in propelling the demand for both conventional and electric auto-mobiles in the Indian market.

Tarun Garg, the Chief Operating Officer at Hyundai Motor India, noted that despite an increase in vehicle prices, there has been a significant decrease in the average age of their buyers over the past five years, dropping by five years to 38 years. Partho Banerjee, the Senior Executive Director of Marketing and Sales at Maruti Suzuki India, gave similar sentiments, he suggests that as more young individuals enter the workforce, there will be a greater influx of younger buyers in the auto-mobile market.

Experts in market attribute the decrease in the age of ownership for high-value products to several factors that have emerged in recent times. Due to surge in hiring during pandemic across various sectors, leading to increased starting salaries for new employees, enabling an influx of higher income has enabled many younger ones, to afford high-value products. With fewer financial responsibilities and liabilities compared to older generations, they are more inclined to invest in luxury items. This demographic is motivated by a desire for status symbols and the associated lifestyle that comes with owning such products.

The availability of consumer finance options has made it easier for individuals, especially those in their first jobs, to make big-ticket purchases. Easy access to loans and instalment payment plans allows consumers to spread out the cost of expensive items over time, As a result of these factors, many young professionals who are just starting out in their careers are now able to afford cars priced above Rs 10 lakhs and the latest smartphones costing nearly Rs 1 lakh. This shift in purchasing behavior among younger demographics reflects changing societal norms.

The craze of brand and luxury among young generation-

Previously, Apple iPhones and large-screen televisions were typically associated with older consumers who had reached a certain age and financial stability. However, there has been a significant change in this trend, with the average age of consumers purchasing these products dropping considerably. The average age for iPhone buyers has decreased from 33-34 years to 28-29 years, while for large-screen televisions, it has dropped from 35-36 years to 29-30 years. This indicates a growing preference among younger demographics for premium electronic devices, driven by factors such as increased affordability, accessibility, and the desire for status symbols.

India has witnessed a robust increase in the purchasing power of the Millennial generation across various sectors, including high-end luxury products. Young consumers are increasingly gravitating towards branded items, reflecting a desire for quality, style, and status. This trend is evident in the growing presence of branded products among the younger population, showcasing their affinity for luxury goods and their willingness to invest in them.

This shift shows the changing preferences and priorities of Millennials, who seek products that align with their lifestyle, aspirations, and values.