With discretionary spending on the rise in India, it is Gen Z (born between 1997 and 2012) that major international and domestic fashion brands are chasing right now. Having grown up in the internet and social media era, this generation is incredibly trend-savvy and highly aware of global and local fashion trends.
In India, Gen Z is already shaping the fashion industry in a big way, as it accounts for 20-25% of the online lifestyle market, which has an estimated gross merchandise value of $4 Bn.
It is imperative to note that while their spending power is still catching up to older generations like millennials and Gen X, their influence on fashion trends is undeniable. Also, we will see the spending power of this generation growing significantly in the coming years.
It is on the back of this factor, among others, that a joint report by Bain & Company and Myntra
projects estimates that India’s online fashion and lifestyle market will grow to $40 Bn – $45 Bn by 2028 from $16 Bn – $17 Bn in 2023. Overall, the Indian domestic lifestyle market, which includes apparel, beauty, accessories, and footwear, is set to breach the $210 Bn mark by 2028.
In anticipation, fashion ecommerce giant Myntra is placing significant emphasis on catering to this influential generation. For instance, last year, Myntra unveiled FWD, a separate fashion experience segment for Gen Z, on its platform.
At the time of launch, Myntra said it was expecting to add 10 Mn Gen Z users to its customer base in the next two years. The platform had a Gen Z customer base of 8.6 Mn in 2022. Interestingly enough, in little over one year, Myntra today has doubled its Gen Z user base to 16 Mn.
“Now, the company expects to add 25 Mn more Gen Z users to its platform over the next two years,” Sunder Balasubramanian, the chief marketing officer of Myntra, said.
However, behind the Gen Z fandom, how did the platform manage to nearly double its Gen Z user base in less than the projected time?
Speaking with Inc42, Balasubramanian said that the company achieved this growth by concentrating on three main areas — catering to trends, immersive shopping experiences, and value.
“For Gen Z, trends are like currency — whether global, macro, micro, or viral. As digital-first natives, they spend around eight hours a day online, so global trends are just as important to them as local ones. Whether it’s a trending colour like cherry red or fashion inspired by shows like Emily in Paris or Call Me Bae, curating selections based on these trends has been the key,” he said.
In addition, the executive said that the company prioritises delivering an immersive shopping experience. Moreover, the platform also seems to have found the ‘mantra’ to unlocking Gen Z’s preferences, who, unlike millennials, are more influenced by a visually rich, video-led shopping journey.
In simple terms, the generation takes Instagram Reels and YouTube Shorts too seriously. “Therefore, we introduced features that mirror that experience. One such feature is Myntra Minis, which offers short-form video content for inspiration on fashion trends, brand recommendations, and styling tips,” the senior executive said.
He added that Myntra currently hosts around 50,000 videos and is planning to add 15,000 more in the coming months. With this, Balasubramanian sees the shopping experience of this fiery generation only getting richer.
The platform has also launched a shopper-led creator programme, Ultimate Glam Clan, under which Gen Z shoppers can review products through text, images, and videos. “If their reviews lead to purchases, they earn a commission,” he said.
Finally, Balasubramanian underlined that the Gen Z user base is more inclined towards value. This is because their disposable income is still low, as many are still in college or just entering the workforce.
To cater to this, the CMO said that the platform offers products at lower price points. For instance, while women’s western wear on Myntra typically costs around INR 800-900, Gen Z-focussed selections on FWD are priced closer to INR 500.
How Has FWD Shaped Myntra’s Gen Z Strategy?
According to Balasubramanian, the company has seen its Gen Z gross merchandise value (GMV) grow by more than 2x over the past year. This growth has come at a time when the country today has 60 Mn Gen Z consumers, accounting for 25% of the online lifestyle GMV.
As this number expands to 200 Mn in urban India, the growth opportunities will multiply substantially. “We’re still in the early stages of this journey, and while contribution is relatively low at the moment, we anticipate it will intensify as the market continues to evolve,” he said.
A great part of Gen Z’s focus is trends. Therefore, they are constantly searching for something new. Brands are adapting to this, launching trend-driven collections at a much greater pace.
While FWD is currently focussed on apparel, the executive said that the platform remains committed to expanding into multiple categories in the future. As of now, for Gen Zers, the only hook to FWD is trend-based clothing. However, when it comes to other categories like beauty, personal care, or home goods, they still turn to the broader Myntra platform.
How Is Myntra Place In The Gen Z Gold Rush
While Myntra is revamping its strategy to appeal to Gen Z shoppers, other ecommerce platforms, too, are not far behind in the race.
For example, Nykaa Fashion has introduced MIXT to capture the attention of Gen Z. Meanwhile, Ajio is planning to bring back Shein and has secured exclusive partnerships with other Gen Z-focussed brands.
On the other hand, smaller D2C brands like NewMe and Bonker’s Corner are also developing omnichannel approaches to engage with this generation.
Amid the current scheme of things, Myntra is partnering with a range of brands (global, D2C, local, and private labels) to solidify its armoury of offerings.
Meanwhile, the company is also focussed on technological innovation. Recognising that many Gen Z shoppers use social media for purchases, Myntra is also developing an M-Web platform for FWD, which will be capable of navigating seamless shopping experiences through social platforms.
Further, to address affordability, Myntra recently launched the FWD Pass, which allows users to pay just INR 9 and receive a monthly one-time discount of INR 50 for six months. Finally, understanding that Gen Z connects more with micro-influencers, Myntra has joined hands with over 25,000 of them.
From here on, what’s intriguing will be to witness how Myntra upgrades itself to create a brigade of Gen Z loyalists before they get baptised by its deep-pocketed rivals or other Gen Z-focussed players entering the market.
[Edited by Shishir Parasher]
