The recent EY Future Consumer Index (FCI), which surveyed 1,000 Indian participants as part of a global poll found that 62 per cent of Indian consumers have made purchases based on AI recommendations, compared to just 30 per cent globally.
Additionally, 61 per cent of Indian consumers consider AI-driven product recommendations to be extremely beneficial. However, despite the growing trust in technology, there are concerns about data security and the exposure of personal information. 77 per cent of Indian consumers are deeply worried about the potential for data breaches when shopping online and 73 per cent are concerned about their private information being disclosed.
The report revealed that 78 per cent of shoppers prefer online platforms that offer human customer service support. Additionally, 61 per cent are more willing to share personal information with a human rather than through automated processes.
Angshuman Bhattacharya, Partner and National Leader - Consumer Product and Retail Sector, EY Parthenon stated, "To connect with today's consumers, retailers must understand their evolving needs. As consumers become more discerning in their choices and empowered to demand fair value for their money, retailers need to step up to be able to satisfy these demands. While Indian consumers are putting a lot of faith in artificial intelligence and other technologies, the human touch through authentic, trustworthy connections and engagement is becoming more important than ever before. Data is king for consumer products companies and brands, but it is imperative for retailers to maintain transparency in their data usage practices and to simplify the opt-out process for consumers who prefer to keep their data private."
Consumers are primarily drawn to content creators on social platforms for the quality and authenticity of their content. In India, influencers have gained popularity with 81 per cent of consumers following social media influencers, bloggers or vloggers. In contrast, only 45 per cent of global respondents admitted to following a social media influencer. 60 per cent of Indian consumers find products recommended by influencers to be extremely trustworthy, compared to just 27 per cent globally. Brands recognise the power of influencers in shaping purchase decisions. According to the report, 84 per cent of Indian consumers have bought products solely based on an influencer's recommendation or promotion.
According to the report, 75 per cent of Indian consumers prefer shopping online and only visit stores that offer an exceptional experience, compared to 41 per cent of global consumers who feel the same. In the past six months, 51 per cent of Indian consumers have downloaded a retail app, while only 31 per cent of global consumers have done so.
The report also found that consumers are motivated by tangible benefits such as discounts and exclusive deals with their loyalty often lasting only as long as the benefits do. Despite the convenience of online shopping, Indian consumers face challenges, with the most common frustrations being receiving damaged goods (21 per cent), inadequate customer support (20 per cent) and difficulties in processing refunds (19 per cent).
Bhattacharya added "To truly embrace consumer centricity, consumer products companies must forge authentic relationships with the influencer community, selecting individuals aligned with brand values and audience aspirations. Establishing an influencer network that maximises return on investment demands a delicate balance between trust and oversight. Choosing the right influencers is critical to protect the brand's image, and it is equally important to keep a close watch on how these collaborations perform.”
