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

A report by Meta and RAI reveals how AI, short-form videos, and messaging platforms are transforming India's retail scene. Social media leads retail product discovery, with Meta platforms taking precedence. Omnichannel shopping and 'phygital' behaviors indicate increased consumer engagement across multiple online and offline platforms.

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.

(With inputs from agencies.)