Why beauty brands are shifting 30-45% of marketing budgets to tap Gen Z

At a recent roundtable, Myntra CEO Nandita Sinha highlighted that nearly 50% of beauty consumption in India is already being driven by Gen Z, a cohort that is not only digitally native but also redefining how brands must communicate, advertise, and innovate. 

This generational shift is forcing the industry to rethink its approach — what worked for millennials is no longer enough for an audience that values relatability over aspiration, conversations over campaigns, and authenticity over gloss.

To stay relevant and tap into this audience, brands, from D2C disruptors to established players, brands today are reworking their advertising and marketing (A&M) budgets, storytelling, and media strategies. Many have begun reshaping their playbooks entirely, moving away from traditional celebrity-led campaigns to community-driven, authenticity-first models.

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From traditional ads to community-driven campaigns

According to several brands, engaging Gen Z requires more than conventional advertising, it demands community-driven, interactive, and digital-first approaches. As a result, beauty brands have shifted their focus to micro- and nano-influencers, short-form video content, and campaigns that invite participation, feedback, and co-creation. 

“Our storytelling has evolved to reflect authentic voices, transparent narratives, and inclusive representation. Instead of polished brand-speak, we highlight behind-the-scenes processes, real consumer stories, and community-led advocacy. Our campaigns often showcase diverse faces and stories, emphasise sustainable practices, and celebrate the ‘1000 small things’ that build long-term brand trust,” said Vaishali Gupta, Co-founder & Chief Growth Officer of Hyphen. Currently, the brand allocates roughly 30% of its marketing budget toward Gen Z-focussed initiatives, Gupta shared.

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At MARS Cosmetics, 40-45% of marketing spends target Gen Z, combining influencer-led storytelling with college activations and trend-driven content, said Anmol Sahai Mathur, Vice President of Marketing, MARS Cosmetics. “While big influencers still play a role in mass awareness, a significant portion of our budget is now directed toward micro- and nano-influencers, keeping in mind the diversity across regions that speak directly to Gen Z in authentic, relatable ways. We’ve also shifted investments into UGC-driven campaigns, college activations, and digital-native formats where Gen Z is most engaged. For us, Gen Z isn’t just an audience; it’s a community,” Mathur elaborated.

Another BPC brand, Pilgrim, balances celebrity endorsements with micro-influencer collaborations and digital-first campaigns. The brand leverages short-form video, live streams, shoppable content, and interactive social media formats such as polls, Q&As, and meme-driven engagement to create campaigns that feel participative rather than monologic.

Simran Kaur, Co-founder and COO of Dermabay, said, “We primarily partner with micro- and non-influencers who have highly engaged communities, allowing us to reach Gen Z authentically. Short-form content like Instagram Reels, YouTube Shorts, and polls see the highest engagement. By tailoring campaigns with bite-sized, visually appealing content and interactive formats, we increase engagement rates, drive awareness, and boost conversions.”

How campaigns are tailored for Gen Z

If budgets are shifting, so too are the formats brands are betting on. For Gen Z, short-form, mobile-first content reigns supreme. Platforms such as Instagram Reels, YouTube Shorts, and Snapchat dominate engagement, while interactive formats—polls, quizzes, challenges, trend-driven hashtags, and behind-the-scenes content—encourage participation and co-creation. Hyphen emphasises raw, real, and unfiltered content; MARS and Pilgrim prioritise trend-driven, shareable formats; others leverage influencer-led storytelling alongside agile product launches. 

“Content feels most authentic when it’s unfiltered, behind-the-scenes clips, product origin stories, or even quirky memes that spark more conversations than overly polished campaigns,” notes Vaishali Gupta. 

RENEÉ has adopted a multi-pronged, digital-first strategy. “Social media and influencer marketing were our launchpads, since that’s where Gen Z lives and engages. At the core, we focus on bold product innovation and agile launches that genuinely resonate and spark curiosity. Additionally, we leverage marketing technology to predict trends and measure impact,” says Ashutosh Valani, Co-founder, RENEÉ Cosmetics. The brand also invests in retail media and in-store experiences, recognising that discovery and impulse buying still happen offline.

Most beauty brands shared that their strategies blend relatability with aspiration, prioritise digital touchpoints, and focus on creating campaigns that feel like two-way conversations rather than one-way monologues. Interactive formats, such as polls, quizzes, challenges, and user-generated content, form the backbone of engagement. 

“Over the last two years, our approach has shifted significantly toward digital-first and community-driven initiatives. Gen Z isn’t just an audience; it’s a community, and we’re investing in building long-term trust with them,” added Anmol Sahai Mathur of MARS Cosmetics.

Measuring effectiveness and optimising campaigns

With evolving strategies, formats, and messaging, measuring effectiveness is critical. Gupta added, “While engagement rates, shares, and community growth are important, the ultimate measure is whether campaigns translate into sustained brand love and repeat purchases. These insights directly inform how we reallocate budgets for future campaigns.” 

Anurag Kedia, Co-founder of Pilgrim, explained that the brand looks beyond just sales conversions to measure success. Engagement metrics, such as comments, shares, and saves on social media, indicate how well content resonates and builds community. They also track follower growth and participation in campaigns to assess whether a loyal brand tribe is being formed. These combined metrics—engagement, community growth, and conversions—guide budget allocation and future campaign planning, helping brands continually adapt to Gen Z’s evolving preferences.

From reallocating budgets to digital-first, community-driven initiatives, to embracing micro- and nano-influencers, short-form content, and interactive campaigns, the focus is now on authenticity, relatability, and participation. It looks like Gen Z’s rise as a key beauty consumer is forcing brands to rethink the entire marketing playbook.