Recently, Shiprocket released a report indicating that during the holiday season, AI-driven recommendations and social media influencers have significantly influenced consumer purchasing behavior. According to the data, as high as 84% of consumers in the apparel and beauty categories made purchases based on promotions or influencer recommendations. This trend reflects the crucial role of AI across various industries, especially in the e-commerce sector.
As India's leading e-commerce enabling platform, Shiprocket projects that India's festive e-commerce market will reach $1.2 billion by 2024, a 23% increase from the $9.7 billion in 2023. This growth is primarily due to the surge in demand among consumers for categories such as fashion, electronics, beauty, and personal care. Additionally, the rise of quick commerce has contributed significantly to this market, expected to contribute $1 billion in gross merchandise value alone.
With the continuous increase in digital penetration in tier-2 and tier-3 cities, India's festive e-commerce market has also encountered tremendous development opportunities. The普及 of the internet, increased disposable incomes, and enhanced digital literacy have led to a significant increase in online festive orders from non-metro areas, with an estimated 60% of orders coming from these regions.
It is worth noting that India's e-commerce export market is currently valued between $3 billion and $4 billion, but is expected to surge to between $200 billion and $300 billion by 2030. Saahil Goel, CEO of Shiprocket, stated that with the arrival of the 2024 festive season, the e-commerce market continues to thrive in "Bharat" (rural India), especially in tier-2 and tier-3 cities. The rise of quick commerce and the growing demand for Indian products in the global market have them very excited, hoping to help small and medium-sized enterprises seize this $1.2 billion opportunity and continue to innovate, providing necessary tools to support businesses in thriving locally and internationally.
The report also mentioned efforts by some international brands in AI applications. For instance, home improvement retailer Lowe's has deployed 40 to 50 AI models on its platform to enhance customer experience and operational efficiency. IKEA, on the other hand, uses generative AI to optimize customer experience, introducing an AI design assistant and an automated inventory management system.
In the US, Target has rolled out a generative AI chatbot called "Store Companion" in 2,000 stores, helping employees handle various issues, making it the first major retailer to provide such an AI tool to its staff. Additionally, Walmart is also leveraging generative AI to enhance shopping experiences, including voice ordering and text-based shopping functionalities.
Key Points:
🛒 84% of consumers are influenced by AI recommendations and social media influencers during holiday shopping.
📈 India's festive e-commerce market is projected to reach $1.2 billion by 2024, a 23% increase.
🌍 The application of AI in retailers is becoming increasingly prevalent, aiding in enhancing customer experience and operational efficiency.