GEN Z, TIER-2 GROWTH & FRANCHISE-READY BUSINESS MODELS

With 66% of consumption driven by people under 35, India's growth story is shifting from metros to smaller cities. Industry leaders decode how Gen Z, rising Tier-2/Tier-3 demand and flexible franchise models are reshaping hospitality & retail industry.

- BY BENY SACHDEVA

India's consumption landscape is undergoing a structural reset. A youth-led surge—millennials and Gen Z now account for the lion's share of spending—combined with rapid retail and hospitality adoption in Tier-2 and Tier-3 cities, is forcing brands to rethink formats, partnerships and operating models. In a Panel discussion recently concluded at FREX Conference in Bangalore, moderated by Anand Ramanathan, Partner & Consumer Industry Leader- South Asia, Deloitte, Davashish Srivastava, Senior Director Development, of Radisson Hotel Group (South Asia) and Jeevan Shetty, Director - Franchise Management, Aditya Birla Lifestyle Brands Limited unpacked what brands must do to capture this next wave of growth.

Anand framed the debate with a striking data point: 66% of India's consumption now comes from people under 35. This demographic prizes convenience, authenticity, social-shareability and speed. For brands, the implication is clear: product and experience design must be digitally native, socially relevant, and frictionless across offline and online channels. "It's not only what consumers buy but how they want it delivered, experienced and shown on social platforms," Anand observed.

Hospitality: From Pampering to Precision — and the Rising Value of Brand Trust

Davashish from Radisson Hotel Group shared an insightful view on how India's hospitality sector has not only recovered but reinvented itself in the post-pandemic era. Contrary to early fears that travel demand would collapse after the temporary "revenge travel" phase, the industry has demonstrated sustained double-digit growth, with room rates and occupancies consistently exceeding 2019 levels — even amid steady increases in new hotel supply.