Born into a digital-first world, these cohorts are digitally native, having grown up with the internet, smartphones and social media as integral parts of their daily lives, forcing brands to adapt or perish. For these young consumers, brand history matters less than relevance. This shift is beyond the short attention spans; it’s more about values, technology, and experiences. For brands, the cost of being slow to adapt or inauthentic is simple: Brand switching. Therefore, the brand must delve deep into understanding the underlying forces behind this shift.
In consumer behaviour parlance, Self-Congruity Theory helps explain this shift: Gen Z and Gen Alpha stay loyal to brands that mirror their self-image, that is, how they see themselves or aspire to be seen. They are socially aware, gender-inclusive, eco-conscious, and tech-forward. For them, sustainability is not a premium feature but the baseline. Eco-friendly packaging, gender-neutral messaging, and organic products build trust, while shallow cause marketing or greenwashing leads to instant rejection.
Authenticity has become the new currency of loyalty. Brands like boAt and Nike illustrate this well. boAt’s community-driven marketing mixes star power (Ranveer Singh, Kartik Aaryan, Hardik Pandya) with relatable micro-influencers (Prajakta Koli, Bhuvan Bam), creating a balance of aspiration and authenticity that resonates with Gen Z. Nike has shifted from celebrity endorsements to community influencers while weaving in its ‘Move to Zero’ sustainability initiative. By blending purpose with peer-driven authenticity, Nike demonstrates that heritage alone no longer sustains loyalty, alignment with values does.
The Howard–Sheth model helps frame this shift: The “inputs” shaping consumer choice are no longer billboards or TV ads but AI-driven recommendations, influencer reels, meme campaigns, and quick commerce’s 10-minute delivery. Their “learning constructs” are powered by instant feedback loops viz Spotify playlists, Amazon suggestions, Blinkit’s gamified interface, where authenticity, sustainability and inclusivity matter as much as price. The “outputs” are fluid: Loyalty is temporary, and switching is frequent when expectations aren’t met.
Quick commerce illustrates this perfectly. Blinkit and Zepto don’t just sell groceries; they sell speed and convenience wrapped in humour. Blinkit’s viral memes (“Order now, delete history later!”) and Zepto’s playful ‘Uncle Ji’ ads make the brands feel like peers, not corporations. Both use AI to nudge impulse purchases, aligning seamlessly with Gen Z’s craving for instant gratification. Expectation-Confirmation Theory explains why this works: Immediate rewards build loyalty, while delayed point-accumulation programmes fall flat.
Even social media has turned into a marketplace. Instagram reels, YouTube hauls and influencer storefronts are today’s shopping malls, with social commerce among Gen Z growing four times faster than older cohorts. For this generation, the journey from discovery to purchase is digital, instant and deeply social.
Hyper-personalisation is now central. Gen Z does not want discounts; they expect tailored experiences such as AI-powered try-ons, curated playlists and regionally relevant choices. Nykaa shows how this works by using browsing history and purchase patterns to refine recommendations, while its partnership with L’Oréal adds virtual try-ons that make beauty shopping immersive and personal. Done well, personalisation builds an emotional connection that price cuts cannot. Experiences matter more than possessions: Limited-edition concert tickets, early access to launches, or AR-driven in-store journeys often mean more than loyalty points.
The rules of loyalty have shifted from prestige and heritage to relevance and experience. Brands must embed authenticity and sustainability into their core, not treat them as afterthoughts. They must deliver instant rewards through cashback, rapid deliveries, or exclusive access to match Gen Z’s demand for value in the present. And they must combine convenience with emotion by offering seamless journeys across digital and physical touchpoints.
Gen Alpha, growing up with virtual assistants, immersive gaming, and infinite choice, will push these expectations further. Already influencing household decisions, they see loyalty less as a lifelong bond and more as a temporary alignment of values and experiences. In this new era, loyalty is not inherited. It has to be earned every day through authenticity, speed and identity.
Dandotiya is a doctoral scholar at IMT Ghaziabad, and Mahasuar is an assistant professor in the strategy area at SP Jain Institute of Management and Research
First Published: Oct 31, 2025, 09:45
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