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It seems digital transformation has shaken up India’s retail sector. Now, more than ever, shoppers are adopting emerging technologies while retaining old habits. The latest Retail Rewired Report India 2025 shows how consumers across the country – from metros to Tier 2 cities – are combining traditional ways with technology to create unique shopping experiences.
AI is also affecting shopping patterns. According to the report, 87 per cent of shoppers believe that AI tools help them shop faster. Overall, 60 per cent of Indian consumers said that they are ‘very comfortable’ using new technologies for everyday tasks. Mostly all respondents, 96 per cent, have made online purchases, indicating how digital tools have become a part of daily life.
The report also shows how shoppers in India are easily oscillating between physical stores and online platforms. As many as 43 per cent said that e-commerce apps are the most helpful technology for search and navigation. It states that more than half of all shopping journeys start in the search bar, while 47 per cent start on social media, increasing to 52 per cent among millennials and Tier-2 city residents. About 60 per cent of the shoppers use e-commerce apps in-store for price checks, product searches, and special offers, showing how discovery often begins online even when they purchase offline.
Shopping with AI
Based on the report, AI is increasingly influencing buying decisions among consumers. About half of consumers rely on AI tools and digital assistants for recommendations. When it comes to features, 49 per cent value price comparison tools, 44 per cent review summaries, and 42 per cent like the ability to ask questions about product availability or delivery. This can be explained with the 87 per cent who believe that digital shopping assistants save time against traditional methods.
Even though AI adoption is remarkable, consumers are also conscious. While 35 per cent said data privacy is their top concern, 60 per cent said it’s security. Meanwhile, 60 per cent admitted that speed is critical, highlighting the significance of fast service. While 63 per cent use digital payments every day, 88 per cent still value cash on delivery. According to 58 per cent, incentives like free delivery are driving this adoption. On the other hand, 55 per cent said it was instant cashback, and 48 per cent said it was total bill discounts that were pushing the adoption.
The findings from the Retail Rewired Report India 2025 also underscore twin challenges for businesses – to offer seamless digital experiences without compromising on trust and flexibility. According to the report, Indian shoppers want transparent data practices, meaningful rewards, and reliable support. However, they also want to continue with traditional options like cash payments.
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