Indian retail is undergoing a massive transformation. AI-powered personalization and omnichannel commerce strategies are becoming essential for survival. Retailers can now analyze customer data in real-time and create personalized recommendations that match individual preferences. This shift from generic marketing to tailored experiences is reshaping how brands connect with customers.
Why AI Personalization Matters Now
The numbers tell a compelling story. Research shows brands excelling at personalization are 48% more likely to exceed revenue goals. They are also 71% more likely to improve customer loyalty. However, there is a significant gap in execution. While brands believe 61% of touchpoints are personalized, consumers only recognize 43% as individualized. This presents a clear opportunity for improvement.
In India, 77% of shoppers prefer retailers that use AI for tailored recommendations. The demand is immediate and growing rapidly.
Market Impact in India
The AI retail market in India is experiencing explosive growth. It is projected to jump from USD 216.26 million in 2023 to USD 2.97 billion by 2032. This growth is driven by changing consumer behavior, as modern shoppers expect personalized experiences across all touchpoints. They want seamless transitions between online and offline channels.
Omnichannel retail in India is growing 50% faster than single-channel formats. Additionally, 73% of consumers use multiple channels before making purchase decisions.
How Leading Retailers Are Winning
Top retailers are implementing sophisticated AI solutions. They use customer selfies to recommend eyewear based on face shapes and suggest blue-light blocking lenses for frequent screen users. Personalized product bundles reach consumers’ phones instantly. These recommendations link previous purchases with potential future needs.
The checkout process becomes frictionless through customer recognition. Myntra exemplifies this approach with AI tools like MyFashionGPT and My Stylist. Their generative AI assistant helps users shop with natural language queries. Users asking “what to wear for a festival” see a threefold increase in purchase likelihood.
Reliance Retail operates over 18,650 stores with unified inventory systems. They use AI across the entire value chain. From product recommendations to demand forecasting, automation enhances customer experience.
Strategic Advantage for Business Leaders
The upcoming ET Soonicorns Summit 2025 in Bengaluru will address these retail challenges. Industry leaders from Myntra, Reliance Retail, and Razorpay will share insights on AI-driven commerce. Venu Nair from Myntra brings three decades of retail experience. Ankit Gupta from Reliance Retail manages massive scale operations. Rahul Kothari from Razorpay focuses on seamless payment experiences.
These experts represent the convergence of fashion e-commerce, large-scale retail, and financial technology. Their strategies integrate AI solutions that foster deeper customer connections.
What Business Leaders Should Know
Successful AI implementation requires understanding customer touchpoints. Brands must deliver consistent experiences across all channels, including mobile apps, websites, and physical stores. The technology enables predictive retail experiences, where customers receive relevant recommendations before they search. Payment processes become invisible through recognition systems.
However, implementation comes with challenges. Retailers must navigate logistical complexities while maintaining data privacy. They need to balance automation with human touch points.
The Path Forward
The Indian retail market is expected to reach USD 1.4 trillion by 2024. Brands that harness AI retail effectively will capture disproportionate market share, while those who fail to adapt risk obsolescence. The integration of AI into retail is no longer optional. It is becoming essential for customer retention and revenue growth.
Data-driven personalization across all channels will define competitive advantage. Retailers embracing these innovations stand to thrive. The technology promises not just increased revenue but fundamental transformation in customer engagement. The future belongs to brands that can seamlessly blend digital innovation with human-centered service.
