Creators drive discovery, but research shapes Gen Z purchases: Report

• 82% expect honesty and transparency from brands and for 51% quality is the most important purchase driver
• 60% spend more during the festivals with preference for start-ups that feel youthful and culturally current
• 6 in 10 use AI for shopping research with 3 in 10 for comparing products
• Own research is the strongest trust source when creator, friend and AI recommendations compete

As India accelerates towards becoming one of the world’s largest consumer economies, Gen Z is emerging as the generation leading its next chapter of growth. In its latest report, Gen Z: A Deep Dive into India’s Most Influential Consumer Cohort, Rukam Capital unveils the unique attributes, motivations and behaviours driving this generation, revealing how Gen Z is actively voting with its wallet, participating in decision-making while being at the center of all.

The study explores Gen Z’s festive outlook, relationship with technology and AI, financial habits, interactions with brands, wellness aspirations, media consumption patterns, sense of identity and culture, and ambitions for the future.

Commenting on the findings, Archana Jahagirdar, Founder and Managing Partner, Rukam Capital, said, “India’s next growth story is being shaped by Gen Z. More than a demographic, they are a powerful economic force influencing what India buys, what brands build and where future growth will come from.

“Our research reveals a generation that is informed, discerning and increasingly rewarding brands that deliver genuine value, transparency and relevance. With 74% of Gen Z consumers saying that a good customer experience builds trust, one message stands our clearly: in the next decade of India’s growth, the brands that win will be those that earn trust, not just attention,” Jahagirdar said.

With over 35 investments across new-age startups, Rukam Capital aims to bring a deeper understanding of the behavioural shifts shaping India’s next generation of consumers, while providing relevant signals for founders, brands and investors navigating the evolving consumer ecosystem.

Key findings: 

Gen Z Festivities: Tradition Meets Tech and Self‑Expression

1. Festivals fuel spending but with balance: Six in ten spend more during festivals, yet purchases are a mix of planning and spontaneity, showing Gen Z’s pragmatic approach to indulgence.
2. Family remains the emotional anchor: Parents and family dominate gifting at 74%, far ahead of friends and partners, underscoring that family expectations are the biggest driver of overspending.
3. Digital discovery meets AI guidance: Online search leads festive inspiration (41%), but strikingly, one in four already use AI for gift ideas, signalling a shift toward tech‑enabled decision making.
4. Self‑expression reshapes tradition Self‑gifting (30%) and healthy snacking (50%) highlight how Gen Z blends tradition with personal wellbeing and self‑care, redefining what festive indulgence means.

AI as Evaluator: Gen Z balances trust with control

1. AI enters the shopping journey: Nearly 6 in 10 Gen Z consumers use AI at least occasionally for product research, primarily to compare, evaluate, and find the best price; Positioning AI as a trusted evaluator more than a discoverer.
2. Comfort with AI, but cautious oversight: While 70% are comfortable with AI recommending products and services, only half (49%) would allow AI to decide without their approval, showing a balance of trust and agency.
3. AI extends beyond commerce: Gen Z embraces AI in broader life decisions, from healthcare (66%) to career guidance (63%), signalling its growing role in their trust ecosystem.

Creators Spark, Research Decides: Gen Z’s Path to Trust

1. Research rules over recommendations: Gen Z trusts their own research most (27%), ahead of friends (20%) and reviews (15%), showing a strong preference for self‑validation over external influence.
2. Creators spark but rarely seal: Social media and creators drive discovery (29%), yet only 6% buy immediately after a creator recommendation; Most check reviews or research further before deciding.
3. Trends are tested, not blindly followed: One‑third research before trying online trends, while only 9% adopt immediately, signalling scepticism toward hype and a demand for relevance.
4. Trying too hard backfires: Around 30% call out influencer overuse, forced slang, or trend‑chasing, showing that Gen Z penalises brands that appear inauthentic.
5. Personalisation is welcomed, relatability wins: Just 6% reject personalised marketing; relatable and engaging content outperforms overt promotion, especially in fashion, food, and wellness.

Pragmatic yet impulsive: Gen Z validates before buying but still values convenience

1. Quality and price dominate decisions: Gen Z remains pragmatic, quality (51%) and price (49%) are the top purchase drivers, far ahead of reviews or trends.
2. Validation-first mindset: Research is the biggest behavioural shift; 46% now research more before buying, and only 4% purchase immediately after discovery.
3. Trust and caution shape choices: Concerns about fake/deepfake content push 32% to verify sellers, while 29% prefer established brands they trust.
4. Convenience and impulse coexist: Quick commerce adoption (28%) reflects Gen Z’s demand for speed, yet 20% admit to becoming more impulsive, showing a duality of discipline and spontaneity.

Methodology: The study was conducted by YouGov in collaboration with Rukam Capital, with a total sample of 4,002 Gen Z respondents aged 18–29 across 18 states in India.