With e-commerce platforms offering easy financing, there has been a notable trend among Gen Z’s in India to opt for loans to finance their iPhone purchases. This shift in consumer behaviour reflects the changing dynamics of the younger generation’s approach to ownership, financial decisions, and the role of smartphones in their lives.
Over the last ten years, India’s digital lending industry has seen exponential growth. “There has been continued growth for consumer durable loans and personal loans by the young population in India. iPhones, known for their cutting-edge features and innovative design, are considered a status symbol among this demographic. The desire to own the latest technology motivates many to explore financing options,” says Laksh Dua, co-founder, WeCredit, a start-up that provides quick, hassle-free loans.
Gone are the days when people had to wait for their salaries to be credited to buy essential commodities. Nowadays, it’s a common scenario where parents might not own an iPhone, but their Gen Z kids do. In the present era, personal loans can be availed in just a few seconds. Numerous platforms offer iPhone loans for as low as Rs 70 a day. Dua adds, “With such affordable EMIs (Equated Monthly Instalment), many Gen Z individuals can make these payments using their pocket money. Even though they may not have substantial sums of money readily available, the EMI option allows them to afford an iPhone.”
Gen Z, often referred to as the tech-savvy generation, places a high value on staying at the forefront of technological advancements. iPhones, known for their cutting-edge features and innovative design, are considered a status symbol among this demographic. The desire to own the latest technology motivates many to explore financing options.
Dua shares, “Many tasks that were traditionally performed on laptops or desktops can now be efficiently executed on today’s smartphones. This shift has led the new generation to prefer having just an iPhone over investing in both a laptop and a regular smartphone.”
The younger generation believes that the additional interest paid over time is negligible compared to the value of having the latest iPhone 12 months ahead of its time.
Financial literacy initiatives and digital tools have empowered this generation to navigate and understand various financial products, including loans, making the process seem less daunting. Many online retailers collaborate with financial institutions to provide no-cost EMI plans, making high-end devices like iPhones more accessible to a broader audience.
Dua opines, “The fear of missing out, or FOMO, is a significant psychological factor driving Gen Z’s purchasing decisions. The fear of being left behind in terms of technology and social status motivates individuals to take loans for iPhones to align with the perceived lifestyle of their peers and influencers.”
The ease with which Gen Z in India is opting for loans to purchase iPhones is a complex interplay of technological aspirations, social influence, changing attitudes towards debt, and the evolving financial landscape. As Gen Z continues to redefine societal norms, their approach to financing high-end gadgets like iPhones offers insights into the changing dynamics of consumer culture in India.
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