Digital Revolution: AI and Social Media Shape India's Retail Future

A recent report by Meta and the Retailers Association of India (RAI) has shed light on the transformative effect of digital platforms on India's retail industry. Artificial intelligence, short-form video, and mobile messaging are at the forefront of this change, with social media becoming the dominant channel for retail discovery.

The report highlights that an impressive 77% of retail brand and product discovery occurs on social media, prominently through Meta platforms. Consumers engaging in omnichannel shopping spend significantly more than their single-channel counterparts. This shift in behavior illustrates a pivot from traditional search-based shopping to scroll-led discovery, fueled by daily consumption of short-form videos by 97% of users.

Retail leaders are encouraged to leverage tools like Reels and creators, along with personalized commerce channels such as WhatsApp, which plays a pivotal role in product discovery. Over half of Indian consumers research products online before in-store purchases, and vice versa, underscoring the prominence of 'phygital' shopping experiences.