AI and WhatsApp Fuel Omnichannel Shopping Surge
Meta and the Retailers Association of India report a new surge in omnichannel shopping, driven by AI-powered recommendations and WhatsApp's expanding business tools. The report highlights that WhatsApp is becoming a critical discovery engine for nearby businesses. This trend is enabling vendors to use the platform for personalized offers, event broadcasts, and building direct customer relationships.
- A joint report by Boston Consulting Group (BCG) and the Retailers Association of India (RAI) projects that India's retail market will more than double to ₹210–215 trillion by 2035. This growth is largely driven by private consumption, with a significant contribution expected from AI-led commerce. - India's social commerce market, valued at USD 8.9 billion in 2025, is projected to reach USD 54.4 billion by 2034, growing at a CAGR of 22.31%. This expansion is fueled by the integration of shopping functionalities within social media platforms and the widespread adoption of UPI for seamless transactions. - The conversational commerce market in India is forecasted to grow at a CAGR of 17.8%, driven by the high penetration of messaging apps and a mobile-first consumer base. Businesses are increasingly using WhatsApp-based bots for product discovery, order confirmation, and customer support. - Tier 2 and Tier 3 cities are now central to India's e-commerce growth, accounting for over 60% of transactions and representing the majority of new online shoppers. Consumer behavior in these cities is driven more by product relevance and affordability than by brand awareness alone. - Despite the demand surge in smaller cities, logistics and fulfillment remain significant challenges, with inadequate warehousing, fragmented reverse logistics, and issues related to cash-on-delivery (COD) creating higher costs and longer delivery times. - The Open Network for Digital Commerce (ONDC) is designed to level the playing field for small retailers by creating a decentralized and inclusive digital commerce platform. As of early 2025, ONDC has onboarded over 500,000 sellers, with small businesses comprising 84% of them and contributing to 56% of total orders. - The WhatsApp Business API has become a critical tool for Indian retailers, enabling automated order updates, abandoned cart recovery, and 24/7 customer support. Retailers using the platform have reported a 98% message open rate and significant increases in sales and cart recovery. - Spending patterns in Tier 2 and Tier 3 cities show a significant surge in digital payments for discretionary categories like watches and jewelry (up to 77%) and essentials like groceries (up to 59%). This indicates growing consumer confidence and a shift from convenience to habitual use of digital payments.
