The recent EY Future Consumer Index (FCI), which surveyed 1,000 Indian participants from a worldwide poll, discovered that 62% of Indian consumers have made purchases based on AI recommendations compared to just 30% globally.
Additionally, 61% per cent of Indian consumers consider AI-driven product recommendations to be extremely beneficial.
However, this increasing trust in technology was offset by concerns around data security and the potential exposure of personal information. A significant 77% of Indian consumers expressed deep concern about the possibility of AI breaches when shopping online, while 73% were worried about their private information getting disclosed.
The report also revealed that 78% of shoppers prefer online platforms that offer human customer service support, and 61% of them are more willing to share personal information with a human than through automated process.
Thus, it can be surmised that despite the confidence with technological advancements, the desire for human connection remains as strong in Indian consumers than ever before.
Angshuman Bhattacharya, Partner and National Leader – Consumer Product and Retail Sector, EY Parthenon said, “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.”
Influencers: India and the Globe
The EY report also indicates that consumers are compelled to follow content creators on social media platforms predominantly for the quality and authenticity of their content.
In India, influencers have gained a massive amount of popularity with 81% of Indian consumers following some social media influencer, blogger or vlogger. On the other hand, only 45% of global respondents admitted that they follow a social media influencer. Yet another notable revelation is that 60% of Indian consumers find products recommended by influencers extremely trustworthy as compared to 27% globally.
The report has also made it clear that brands now recognize the power of influencers to shape purchase decisions of their customers. According to the report, a spectacular 84% of Indian consumers have bought products solely based on an influencer’s recommendation or promotion.
Online Shopping: The next big thing?
Online shopping is gaining popularity and traction in India. 75% of Indian consumers have acknowledged that they prefer to shop online and only visit in-person stores which provide unique experiences. In contrast, only 41% of global consumers feel the same. Additionally, in the last six months in India, 51% of consumers have downloaded a retail app compared to just 31% globally.
The report has also discovered that consumers are mainly driven by tangible benefits such as discounts and exclusive details, and that their brand loyalty is generally as lasting and concrete as the benefits they receive.
However, despite the convenience and preference of online shopping, Indian consumers have acknowledged the challenges they face. The most common complaints include receiving damaged goods (21%), inadequate customer support (20%), and obstacles in processing refunds (19%).
EY Parthenon’s Angshuman 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 maximizes 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.”
