The latest Retail Rewired Report India 2025 reveals how consumers across the country – from metropolitan centres to Tier-2 cities – are merging traditional habits with digital tools to shape distinctive shopping experiences.
Artificial intelligence (AI) is playing a growing role in purchasing behaviour. According to the study, 87% of shoppers believe AI tools enable them to shop more quickly, while 60% reported feeling “very comfortable” using new technologies in their daily routines. Almost all respondents (96%) confirmed they had made online purchases, underlining how digital platforms have become integral to everyday life.
The report found that Indian consumers are moving fluidly between physical and digital channels. Around 43% identified e-commerce apps as the most helpful technology for search and navigation. More than half of all shopping journeys begin in a search bar, while 47% start on social media – rising to 52% among millennials and shoppers in Tier-2 cities. Even within physical stores, 60% of shoppers use e-commerce apps for price checks, product searches and discounts.
AI-driven recommendations are also shaping decisions. Nearly half of consumers rely on AI tools and digital assistants for guidance, with 49% valuing price comparison features, 44% citing review summaries, and 42% preferring tools that answer questions about availability or delivery.
Despite this widespread adoption, concerns remain. The survey found that 35% of consumers identified data privacy as a top issue, while 60% highlighted security. Speed of service also emerged as a decisive factor, with the same share of respondents stating that quick transactions were critical.
Digital payments are now routine, with 63% using them daily. Yet traditional options continue to hold sway, with 88% saying they still value cash on delivery. Incentives have helped drive adoption, with 58% citing free delivery, 55% instant cashback, and 48% total bill discounts as key motivators.
According to the report, businesses in India face the challenge of balancing seamless digital experiences with trust, transparency and flexibility. Consumers are seeking reliable support and clear data practices, while also wishing to retain familiar payment methods.
