EY Future Consumer Index reveals Indian shoppers’ preference for human interaction and rising influence of AI and influencers in purchase decisions
The recent EY Future Consumer Index (FCI) survey, which included responses from 1,000 Indian participants as part of a global poll, revealed that 62 per cent of Indian consumers have made purchases influenced by AI recommendations, compared to just 30 per cent globally. Additionally, 61 per cent of Indian consumers find AI-driven product recommendations extremely beneficial.
However, this increasing confidence in technology is accompanied by concerns about data security and the exposure of personal information. 77 per cent of Indian consumers express concern about the possibility of data breaches when shopping online, while 73 per cent worry about their private information being disclosed.
Despite the growing reliance on technology, the desire for a human connection remains strong among Indian buyers. The report revealed that 78 per cent of consumers prefer to shop on online platforms that provide human customer service support. Additionally, 61 per cent are more inclined 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, 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 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 drawn to follow content creators on social platforms primarily for the quality and authenticity of the content. In India, influencers have gained a significant amount of popularity, with 81 per cent of consumers following some social media influencer, blogger or vlogger. In stark comparison, only 45 per cent of global respondents admitted to following a social media influencer. A noteworthy revelation is that 60 per cent of Indian consumers find products recommended by influencers extremely trustworthy, compared to 27 per cent globally. Brands recognise that influencers have the power to shape purchase decisions. According to the report, 84 per cent of Indian consumers have bought products solely based on an influencer’s recommendation or promotion.
75 per cent of consumers acknowledged that they prefer to shop online and only visit stores which provide an exceptional experience. In contrast, only 41 per cent of global consumers feel the same. In the last six months in India, 51 per cent of consumers have downloaded a retail app compared to 31 per cent globally. The report found that consumers are driven by tangible benefits such as discounts and exclusive deals, and their loyalty is often as lasting as the benefits they receive. Despite the convenience of online shopping, Indian consumers do complain of challenges; the most common frustrations include receiving damaged goods (21 per cent), inadequate customer support (20 per cent) and obstacles 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 protecting the brand’s image and it is equally important to keep a close watch on how these collaborations perform.”
