AI creates buzz in India's shopping interests

AI is transforming the Indian e-commerce landscape, with a recent survey revealing that 84% of consumers are influenced by AI-driven recommendations and social media promotions when shopping for fashion and beauty products. E-commerce giants like Flipkart and Amazon India are harnessing AI to optimise supply chains, enhance product recommendations, and improve customer service.

AI-driven chatbots are becoming more common for customer support, while computer vision technologies enable visual searches and augmented reality shopping experiences. If you’ve been active on social media recently, you’ve likely noticed brands upselling products and services on your feeds—these recommendations are powered by AI technology.

Companies are fully embracing AI in their backend systems, using automated technology to process vast amounts of data in just minutes, providing insights for business decisions.

Huge sales growth during festive season

As the 2024 festive season approaches, the Indian e-commerce market is expected to see remarkable growth, with projected sales reaching $12 billion from October to December—up 23% from last year’s $9.7 billion.
This surge is driven by strong demand in key sectors such as fashion, electronics, and beauty. Notably, 60% of online festive orders are anticipated to come from tier-II and tier-III cities, where better internet access and rising incomes are enhancing shopping capabilities.

First time shoppers make waves

As data reveals, first-time shoppers are expected to account for 55% of festive orders, highlighting a growing market segment. Weekend shopping remains popular, with Saturdays and Sundays contributing 27% of total sales.

In addition to traditional e-commerce, quick commerce is set to play a significant role, contributing $1 billion in gross merchandise value during the festive season.

MSMEs on tapping new opportunities

On the export front, Indian MSMEs are tapping into lucrative opportunities, with the e-commerce export market currently valued at $3-4 billion and projected to grow to $200-300 billion by 2030. Cross-border e-commerce sales have increased by 15-20% in 2023, particularly in categories like handicrafts and home décor. Overall, India’s e-commerce exports are on track to reach $200 billion by 2030, bolstered by government initiatives and private sector efforts.