You must be well familiar with the term Gen Y. If you were born in the 80's and early 90's, you are the Gen Y. If you were born between 1961 to 1981, you are the Gen X. So why are we talking about the Gen X and Gen Y? India is going through a financial revolution. After demonetization, cashless transactions really took off in India. With digital transactions rising, marketers saw an opportunity.
It is very convenient to transact digitally, if you have a smart phone. So marketers are targeting the Gen Y and Millennials (Those born between 1983 and 2000), enticing and luring them to buy the latest smart phones.
There is no shortage of smart phones in India. There are a number of Indian and Chinese smart phone brands and you have a wide range of choices. With more and more Chinese smart phone brands entering the country, prices of smart phones are falling.
Yes...Marketers are targeting the Gen Y, enticing and luring them to buy smart phones. But, don't you think marketers should also be targeting Gen X? You may be surprised to know that Gen X is adopting cashless and digital transactions, Big Time.
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In the last 10 years, the population of citizens between 25 years to 35 years called millennials, has really shot up. After demonetization, cashless transactions have really taken off in India. It looks like millennials have arrived at the right time.
With digital transactions growing in India and the prices of smart phones falling, Gen Y and millennials are grabbing smart phones like never before. In all this you are forgetting something.
Census data indicates that in the next decade, citizens in the age group of 25-35 years will actually decline. With falling birthrates, citizens in the 41 to 50 year category (Gen X), will be the fastest growing population segment in India.
It is popularly believed that Gen X (citizens who are currently in their 40's and 50's), are not digitally and technology savvy. They are slow to adopt technology and marketers tend to ignore them. Not true. You will be surprised to know that after demonetization, Gen X is fast adopting digital and cashless transactions, almost on par with millennials. Gen X is the champion of cashless in India.
Yes, Demonetization made Gen X digitally smart. Take a look at this report by a famous market research Company. Post demonetization, digital financial transactions in the age group of 35-45 years, went up from 88% to 95%.
If you take a look at digital financial transaction growth in the age group of 45-55 years, you will be surprised to find out that before demonetization, only 68% of these citizens used digital transactions. After demonetization, the number of digital transactions in this age group, has shot up to 90%.
Aren't Gen X the true champion of cashless?
More and more citizens in their 40's and 50's are using mobile wallets, mobile banking, internet banking and financial apps. For those who don't know, mobile wallet is a digital equal of a physical wallet. You can store cash and pay using a mobile wallet. You load money into your mobile wallet from your bank account and pay for cab rides, groceries and even movie tickets.
Remember: Gen X has the money. Many of the citizens in their 40's and 50's are well placed in their careers and hold highly paying jobs.
They are smart and tech savvy too, and after demonetization, have seriously pursued mobile wallets, internet and mobile banking, understood them and adopted them. They also buy smart phones and can easily afford very good smart phones.
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Gen X is buying smart phones and using mobile wallets, internet banking and mobile banking.
According to a report on digital payments in India, payments through digital instruments will soon touch $500 Billion by 2020. The Government has set a very high target of 25 Billion digital payments by FY 2017-18. If the Government has to reach this target, Gen X has to adopt digital instruments and make digital and cashless transactions. Be Wise, Get Rich.
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