How Gen-Z broke the purchase funnel â€“ and why we must listen to them

Authored by Ashutosh Munshi, Lead Advisor - Brand Marketing & Communications at Edelman India
India’s Gen Z has done something that the marketing industry should urgently take note of – they have fundamentally broken the purchase funnel. Born between 1996 and 2010, this cohort is India’s largest (at 472 million, or a little more than the entire population of the EU) and wields buying power and influence like no other generation before them. It has empowered them to reshape marketing, from a discipline that pushes customers through a rigidly defined funnel to a more authentic experience that meets customers where they are.

According to the India edition of the ‘Edelman Trust Barometer Special Report: The Collapse of the Purchase Funnel’, there are four foundational shifts that describe the new world of marketing that Gen Z is ushering in.

First, prioritising safety and trust. Gen-Z Indian consumers are feeling more vulnerable to climate change, global conflict, misinformation, concerns for their health, inflation, polarisation, and rights and freedom, in that order. For most Indian consumers (70%), brands that address these vulnerabilities are the brands they trust.

The 14-country report found that most (73%) of Indian consumers are assessing brands based on how they impact their health (76%) and the environment (73%). So, it is not surprising that for most (89%) consumers, the importance of trusting the brand they use ranks almost at par with classics such as great customer service, value for money, and quality (all at 90%).

Interestingly, what gets put into India’s shopping carts is also heavily influenced by geopolitical factors (i.e., where these brands are headquartered) for a surprising 85% of consumers, much higher than the global average of 77%.
On the whole, trust plays a far greater role for brands than it did just a year ago. This is not surprising because between 2022 and 2023, Gen Z experienced their first brush with the combined force of geopolitical and climate anxieties and the sustained imprint of pandemic-borne health fears. Shaped by their formative years, Gen Z now encourages Indian consumers to prioritise environmental friendliness (89%), as well as diversity in brand advertising (84%), and employee diversity (82%).

Second, the need to listen to Gen Z. Indian marketers should pay close attention to the report's most mission-critical finding: Teenagers and college-aged individuals influence where and how 90% of Indians shop, whether it's online or at a brick-and-mortar store. The influence of Indian Gen Z is significantly greater than that of global respondents (68%) in shaping how Indian shoppers think about, relate to, and discuss brands.

Third, Gen Z is bringing a close to the purchase funnel era. The funnel, a central tenet of all marketing strategy and tactics, has been completely disrupted. Consequently, the traditional approach of 'pushing consumers down the funnel' will no longer be effective because as many as 72% in India (as opposed to 78% of global respondents) initiate their brand relationships by directly purchasing the product. The purchase, which used to be the final destination of the funnel, now marks the beginning of a journey filled with curiosity and brand evaluation.

In fact, an overwhelming majority (94%) interact with brands far beyond just using their products or services. They consume brand content, engage in brand activities, connect on social media, or provide feedback, all in an effort to assess how the brand fits into their lives and whether they can trust it.

The funnel, therefore, is being replaced with a ‘Trust Loop’ built on trust between brands and consumers.

Purchase decisions are built on engagement, which in turn builds attraction and trust. Thus, the Trust Loop is not just consumer action, but also brand action reinforced by communications. Trust is built with a spirit of reciprocity between brands and consumers – where brands do not only make great products but do good, and that, in turn, fuels the consumer action of purchase, advocacy and loyalty. Further, this trust drives growth beyond just a transaction. A sale is good, but a repeat sale from a loyal, advocating consumer is even better. And this reinforces the need for constant interaction, to reassure a vulnerable consumer that the brand supports their intent for a safer, better world.

To embrace this dynamic world of trust-oriented communications, marketers can look to the following starting points:

Replace the funnel mindset and build your brand and measurement strategy around the Trust Loop.
Focus on Gen Z to unlock consumer action at scale. Even if they are not your target audience, Gen Z is already influencing your target audience.
Make trust your growth engine. With trust, brand action fuels consumer action – buying, advocacy and loyalty. Through a reciprocal relationship that builds trust, you can unlock growth.