Gen Z not a monolith, demands more than algorithm-driven personalization: Kantar report

As 2025 approaches, India’s marketing landscape is undergoing significant transformation, fueled by rapid social shifts, evolving consumer behaviours, and the ever-accelerating pace of technology. The dynamic interplay of urban and rural consumption patterns, the rise of a digitally empowered rural economy, and the nuanced aspirations of a diverse demographic are rewriting the rules of brand engagement and strategy. In an era where consumer confidence remains volatile, marketers are increasingly tasked with navigating a complex and evolving ecosystem to connect meaningfully with their audiences.

According to Kantar’s latest report, India at Crossroads, six key trends are poised to influence brand strategies and redefine marketing success in 2025. The report, backed by extensive attitudinal and behavioural insights, highlights the socio-economic shifts reshaping the Indian consumer base. Post-COVID, urban consumption has stagnated, with the middle class shrinking as incomes come under pressure. On the other hand, rural India is witnessing a surge in spending, buoyed by strong monsoons, diverse income sources, and rapid adoption of digital services such as online payments, e-commerce, and gaming platforms. This stark contrast between urban and rural consumer sentiment underscores the need for brands to adopt tailored strategies.

Premiumization, driven by aspirations among smaller families, empowered women, and identity-seeking Gen Z consumers, is another trend shaping the market. However, Kantar emphasizes that premium brands must focus on creating a distinct perceived difference to capture the attention of aspirational consumers. In the attention economy, where Indian consumers juggle traditional and digital media, understanding the nuanced characteristics of each channel has become imperative. Marketers are encouraged to craft media plans that align with consumer preferences, balancing incremental reach, attention, and expected outcomes.

The report also warns against viewing Gen Z as a monolithic group. This diverse demographic, with unique motivations and cultural intersections, demands more than algorithm-driven personalization. Brands must delve deeper into understanding their multifaceted identities to create experiences that genuinely resonate. Looking ahead, Kantar envisions a future where storytelling remains critical for building emotional connections, even as the way stories are told continues to evolve.

Kantar’s experts offer strategic recommendations for marketers to thrive in this rapidly changing environment. Brands must recentre their narratives on culture and people, focusing on meaningful differentiation and identity-based insights. Dynamic media planning that balances reach and efficiency is essential, as is avoiding broad demographic generalizations. Exploring consumer identity intersections and utilizing digital platforms to connect with diverse audiences will unlock growth opportunities. Additionally, integrating influencer content with traditional digital advertising can amplify both awareness and purchase intent.

Deepender Rana, Executive Managing Director, South Asia, Insights Division at Kantar, emphasized the importance of breaking through the current slowdown by driving meaningful difference. “Some brands have managed to grow shareholder value 1.5 times faster than average by connecting deeply with consumers. The future lies in embracing complexity and crafting data-driven strategies that resonate.” Soumya Mohanty, Managing Director and Chief Client Officer, added, “The ability to embrace complexity and make trade-offs will provide the competitive edge as brands navigate 2025.”

As India stands at a crossroads, these insights offer a roadmap for marketers to not only weather challenges but also seize emerging opportunities. By embracing nuanced strategies and leveraging data-driven storytelling, brands can position themselves to thrive in the evolving consumer landscape.