Digital Queues To Financial Cues: How Millennials' Choices Are Driving Investment Trends

If you're a Millennial or Gen Z, chances are you've had this exact experience in 2024 — You're waiting in a queue, your heart racing, with your eyes glued to your phone screen, waiting to snag tickets for Coldplay's 2025 concert in India. It's the ultimate thrill — the promise of a night filled with unforgettable experiences, and you’re willing to do whatever it takes.

For many, this isn't just about a concert; it’s about chasing experiences that are instant, and immersive. With the rise of quick commerce, the growing concert economy, and the increasing demand for luxury brands, millennials’ preferences are steering industries in new directions. As these behaviours unfold, they are also redefining investment trends in the Indian market. 

Gone are the days when financial success meant hoarding assets for an uncertain future. For millennials, the future is now. Concerts, travel, and entertainment are no longer luxuries. A 2024 Indian Retailers Association report found that nearly 70% of millennials prioritise spending on experiences over long-term investments.

"This generation is looking for more experiences than assets," said Nimesh Chandan, chief investment officer at Bajaj Finserv Asset Management. This spending wave is reshaping entire industries. Platforms like BookMyShow saw an 18% revenue surge in 2024, fueled by demand for concerts, festivals, and live events.

"I don’t want to look back and think, 'I should’ve gone to that concert,'" said Sakshi*, a 25-year-old marketing professional from Mumbai. To ensure she never misses out, she even has a dedicated 'experience fund'.

The demand for experiences is fueling growth in certain sectors. Concert promoters, travel agencies, luxury event organisers, and hospitality brands are capitalising on the trend. Major platforms like BookMyShow, which offer ticketing services for live events, saw a surge of 18% in their revenue during 2024, driven by millennials eager to attend concerts, festivals, and live performances. Investors are keen to identify companies within these experience-focused sectors that have strong models and capable management to navigate this shift.

"The rise of quick commerce, the concerts, and the spending on entertainment are all signs of a shift towards immediate gratification and experiences," said Chandan.

From groceries to gadgets, quick commerce has become the millennials’ answer to 'I want it now'. Platforms like Blinkit, Zepto, and Swiggy Instamart are part of the rapidly growing sector that delivers products within minutes. Even Amazon is set to finally join the others to compete in India’s $6 billion quick commerce market. Myntra joined the rush too, with its recent announcement of 'M-Now', offering 30 minute delivery of apparel. 

"The expectations of consumers have changed significantly. People want things faster, better, and with more quality. Whether it’s quick commerce, or even something as basic as a suitcase, the presentation has transformed completely," Chandan said.

But behind the instant deliveries lies a tougher investment story. Though the quick-commerce industry is projected to grow 25% annually, reaching Rs 50,000 crore by 2025, sustaining profits remains a challenge.

"The challenge is identifying when a business has been overvalued due to high expectations of future growth. It’s easy to get excited about a company, but the valuation must justify the growth potential," Chandan said.

One of the most significant changes in consumer behavior is the shift from owning to upgrading. Millennials are less inclined to own assets, preferring instead to frequently upgrade what they already have. Whether it’s upgrading to a luxury car, buying premium vacation packages, or renovating their homes, millennials are willing to pay more for better quality.

"This generation wants to upgrade—whether it’s in their consumption of luxury cars, travel, or even daily essentials like toothpaste. The frequency and quality of consumption are both on the rise," Chandan said.

This pattern is evident in a 2024 study by McKinsey, which revealed that over 40% of millennial consumers have increased their spending on high-end brands in the past year, with many opting for premium experiences in everyday categories like skincare, clothing, and even food delivery. 

With such an overload of choices, it's easy to fall into a trap which is not very sustainable, said Aarushi*, a 24-year-old HR professional based out of Bengaluru. "I would rather spend a little extra on something, if I know that its either going to sustain itself for long, or if I know it's going to make for a unique addition to a memory."

The upward trend in spending is not restricted to urban areas. Even in rural parts of India, consumption is becoming more frequent and premium. According to a Nielsen report, rural consumption of branded goods has increased by 30% in 2024 compared to 2023. This has been attributed to rising incomes and changing aspirations among rural millennials who want to emulate their urban counterparts.

FOMO, or the fear of missing out, is a key driver of millennials' investment behaviours. This generation is more prone to investing in trending sectors, especially in tech, EVs, and cryptocurrencies. The fear of missing out on the next big thing has led millennials to take risks on emerging sectors, pushing up valuations for companies that may not yet have a proven track record.

"When selecting stocks for the long term, you need to make sure that they are supported by strong megatrends. If they are, you can confidently hold onto them," Chandan said. However, he also noted valuation becomes very important when investing. "Great companies at the wrong valuations may not be great investments." 

*Names changed on request.