Capturing the Hearts of Gen Z and Millennial Consumers in India

No longer just a “nice-to-have,” sustainability is emerging as a critical factor in consumer purchasing decisions. A recent report by Harvard Business Review highlights this impending transformation, signaling a future where truly sustainable brands will gain a competitive edge over those with flimsy environmental claims or inadequate sustainability investments.

But what does this mean for D2C brands in India, and how can they leverage sustainability to resonate with the younger generations?

Trust: The Cornerstone of Consumer Behavior

At the heart of this shift lies trust. Extensive research demonstrates that trust is a potent driver of positive behaviors and business outcomes.

Sustainability: A Catalyst for Trust, Especially Among Youth

Sustainability emerges as a key driver of trust, particularly among younger generations. Gen Z and Millennial consumers, in particular, place a premium on brands that demonstrate a genuine commitment to sustainability. When these consumers perceive a brand as caring about its impact on people and the planet, they are significantly more likely to choose and invest in it. Humanity and transparency are pivotal in building trust, with brands that score high on these attributes enjoying increased patronage from younger demographics.

The Shift in Purchasing Power

Forecasts indicate that Millennials and Gen Z will soon wield the majority of purchasing power in India. With up to $68 trillion in wealth expected to transfer from older to younger generations by 2030, the significance of winning the trust of these demographics cannot be overstated. To resonate with younger consumers, brands must demonstrate authenticity, embodying values of inclusivity, social responsibility, and environmental stewardship.

Leveraging Sustainability: Lessons from D2C Brands in India

Several D2C brands in India have successfully embraced sustainability as a core pillar of their business strategies, resonating deeply with Gen Z and Millennial consumers:

Bombay Hemp Company (Boheco): Boheco has pioneered the use of hemp-based products in India, promoting sustainable agriculture and eco-friendly practices. By offering a range of hemp-based products, from textiles to skincare, Boheco has captured the attention of environmentally conscious consumers.

The Souled Store: Known for its quirky merchandise and pop culture-inspired designs, The Souled Store has made strides in sustainability by incorporating eco-friendly materials and ethical production practices into its supply chain. This commitment to sustainability has endeared the brand to socially conscious consumers.

Bare Necessities: Bare Necessities is on a mission to reduce plastic waste by offering a range of zero-waste personal care products. From shampoo bars to bamboo toothbrushes, Bare Necessities appeals to consumers seeking eco-friendly alternatives without compromising on quality.

These examples underscore the importance of aligning sustainability efforts with consumer values and preferences. By prioritizing sustainability and communicating transparently about their initiatives, D2C brands in India can forge deeper connections with Gen Z and Millennial consumers, securing their loyalty and driving long-term success.

As the HBR report suggests, the tipping point towards sustainability-driven consumption may still be on the horizon, but proactive steps taken today can position D2C brands for success in the future.