84% of Consumers Make Purchases Based on AI-Driven Recommendations, says Shiprocket Report
With AI taking center stage in every industry, recent data by Shiprocket suggests that AI-driven recommendations and social media influencers shaped consumer behaviour during this festive season sales. In the fashion and beauty categories, 84% of consumers made purchases based on promotions or influencer suggestions. Shiprocket, one of India’s leading eCommerce enablement platforms recently released data insights projecting the Indian festive eCommerce market to reach $12 billion during the key months from October to December 2024. This represents a substantial 23% increase compared to $9.7 billion in 2023. The report noted that the growth is largely driven by consumer demand in categories like fashion, electronics, beauty, and personal care, along with a surge in quick commerce, which alone is expected to contribute $1 billion in GMV. Well, the continued rise of digital penetration in Tier-2 and Tier-3 cities has fueled the festive eCommerce growth in India. The improved internet accessibility, rising disposable incomes, and enhanced digital literacy beyond Tier-1 cities, approximately 60% of online festive orders are expected to originate from non-metro areas. Furthermore, India’s eCommerce export market is presently valued at approximately $3-4 billion but is expected to surge to $200-300 billion by 2030. “As we enter the 2024 festive season, the momentum for eCommerce continues to build across Bharat, particularly in Tier-2 and Tier-3 cities. With the rise of quick commerce and the increasing global appetite for Indian products, we are excited to support MSMEs in tapping into this tremendous $12 billion opportunity. Our goal is to continue innovating and providing the tools necessary for businesses to scale and succeed both locally and internationally,” said, Saahil Goel, MD & CEO, Shiprocket. AI and eCommerce Lowe’s, a Fortune 50 home improvement retailer, has deployed over 40-50 AI models across its platform to enhance customer experience and operations, alongside building an SOTA omnichannel order management system internally. Meanwhile, IKEA is using generative AI to enhance both customer experience and operational efficiency, with an AI-powered personal design assistant for home furnishing, AI-generated seasonal advertising campaigns, and autonomous drones and robots optimszing inventory and delivery systems, all while focusing on responsible AI use and educating 3,000 staff members in ethical AI practices. Target, on the other hand, has launched its generative AI chatbot, Store Companion, across 2,000 stores in the US to assist employees with process questions, coaching, and operations management, marking the retailer as the first major player to offer generative AI tools to its service staff. Walmart is also been harnessing generative AI to enhance the shopping experience with features like voice ordering, text-to-shop, and AI-powered event planning, while deploying tools like “Ask Sam” to assist employees with product locations and price checks.
India’s eCommerce export market is presently valued at approximately $3-4 billion but is expected to surge to $200-300 billion by 2030.
Shiprocket, one of the India’s leading eCommerce enablement platforms released data insights projecting the Indian festive eCommerce market.
["AI (Artificial Intelligence)", "ecommerce"]
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["AI", "generative AI", "R", "Go", "Git", "responsible AI", "programming_languages:R", "programming_languages:Go"]
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