A college student points her phone at a pair of sneakers in Phoenix Mall, Mumbai, and augmented reality (AR) overlays let her try them on virtually, matching colours with the denim she is wearing. A tap later, a customised discount pings her app, an artificial intelligence (AI) engine recognising her as a loyal shopper. At the checkout counter, there is no wallet fumble; the Unified Payments Interface (UPI) settles the bill in seconds. A drone whirls past the atrium skylight, ferrying same-day deliveries to nearby neighbourhoods.
These are not one-off experiments any more. They mirror a retail sector that is scripting one of India’s fastest growing digital success stories. According to industry estimates, India’s retail market – already valued at over $950 billion – is set to cross $2 trillion by 2033, with e-commerce expected to command a rising share. From AI-driven personalisation and cashier-less stores to last-mile automation and hyperlocal delivery, retail is no longer about shelves and counters – it’s about ecosystems seamlessly fusing the physical and the digital.
A look at the key technologies shaping the sector…
AI
AI is critical in defining the customer journey, as marketing sans AI is akin to fishing in an empty pond, as shoppers are becoming tech-savvy, digital-first and research-driven. AI is blurring the boundaries between the once-siloed online and in-store experiences, as retailers are leveraging AI for their marketing campaigns to offer tailored omnichannel shopping experiences. For instance, Ralph Lauren has introduced “Ask Ralph”, an AI-powered fashion assistant that offers personalised styling suggestions to the brand’s customers.
On the retailers’ side, a major use of AI has been inventory planning based on demand forecasting as per seasonal requirements, hyperlocal consumption patterns and festival schedules, using tools such as Stylumia. This can be a game changer in tackling the country’s overstock crisis and reducing the carbon footprint of industries such as fashion, where unsold goods may lead to high discounting, with markdowns corroding margins by as much as 40 per cent. A case in point is Panasonic, which has been leveraging generative AI (GenAI) for demand forecasting since October 2024. A February 2025 estimate by EY India predicts that GenAI will boost retail productivity in India by 35-37 per cent over the next five years. Meanwhile, AI is being used by leading fast-moving consumer goods brands to strike a chord with customers. For example, Cadbury Silk’s “Say it with Silk” campaign used GenAI to transform consumer-submitted moments into over 500,000 unique animated videos. Finally, AI is unlocking new revenue streams for retailers, as these tools can analyse competitor pricing from nearby stores or e-commerce platforms and recommend real-time pricing strategies. For instance, since September 2024, Flipkart has been utilising AI for dynamic pricing and inventory allocation.
Going forward, AI in the retail market in India is expected to reach a projected revenue of $3,474.6 million by 2030. As the technology evolves, newer use cases will emerge and drive its adoption.
Blockchain
Blockchain technology in the retail industry delivers the following advantages: reduced costs, quicker payments, enhanced security, more traceability and greater transparency. It lowers expenses by automating transactions through a decentralised system and improving interoperability, eliminating administrative overhead. Payments become faster by cutting out centralised intermediaries. The decentralised nature of blockchain significantly boosts protection against cyber threats, while also offering clear visibility into transactions. One prominent retail application is smart contracts, which enable retailers to establish enforceable agreements with wholesalers, ensuring compliance, with automatic freezing if terms are violated. A case in point is the De Beers Group, which has registered nearly 3 million diamonds on its Tracr blockchain platform since 2022. The system offers proper details related to their country of origin, along with complete verification of diamonds from the rough-to-rough to the rough-to-polished stages. Meanwhile, in August 2025, Haribol partnered with Bankai to create a blockchain-powered, data-driven ethical food chain.
Industry estimates project the Indian blockchain in the retail market to grow from $1.06 billion in 2024 to $35 billion by 2035, propelled by the need for transparency and enhanced traceability in supply chains.
Immersive shopping experience
Legacy brands are using 3D, AR, virtual reality (VR) and other immersive technologies to enhance consumer engagement and up their marketing game. Because AR/VR facilitates digital information overlays, makes product navigation simpler and promotes employee training, freeing up staff members to concentrate on higher-value duties, operational efficiency is increased. Additionally, by helping consumers better understand products before making a purchase, allowing brands to gain data-driven insights about consumer behaviour and helping merchants stand out in a congested market, AR/VR helps reduce product returns.
For instance, in January 2025, Nykaa inaugurated its “Luxe” store, offering numerous services, including virtual trials and bespoke skin consultations powered by magic mirror technology. Similarly, in February 2025, Britannia launched a mixed-reality print ad where a simple QR code on the Britannia Pure Magic Choco Frames ad would transport users into a stunning 3D Harry Potter-themed world. The four Hogwarts houses would emerge from the biscuit itself, and after choosing a house, customers could send a personalised message to their loved ones. Meanwhile, in order to produce marketing and advertising campaigns more quickly and creatively, the L’Oréal Groupe launched its generative AI content platform, CREAITECH, in June 2025. The platform is creating and utilising 3D digital renderings of its products.
Looking ahead, India’s immersive technology in the retail industry market is expected to grow at a healthy pace from $784 million in 2024 to $6,240 million by 2035, as marketing budgets increase and more use cases such as furniture visualisation apps and gamification emerge. Further, emerging technologies such as edge internet of things and 5G can revolutionise retail operations by enabling real-time data processing at the network’s edge, thus minimising latency and improving security.
Robotics and automation
The adoption of robotics in the Indian retail sector is witnessing rapid growth, fuelled by increasing automation demands, rising labour costs and the need for enhanced operational efficiency. As retailers strive to optimise inventory management, streamline supply chain processes and improve customer interaction, the implementation of robotics technologies is becoming critical. Taking this into account, solutions such as Mitra Robot are being developed to promote adoption in the industry. This five-foot-tall humanoid robot is equipped with state-of-the-art intelligence to adapt to various customer needs. Parallelly, in July 2025, Razorpay POS released AI-powered self-healing point-of-sale (POS) devices. According to the makers, these devices proactively detect and resolve up to 60 per cent of industry-wide POS issues (such as unstable network connections, memory-hogging apps and degrading battery performance), ensuring faster checkouts and uninterrupted operations.
The Indian robotics market, valued at approximately $1.7 billion in 2024, is expected to grow at a robust compound annual growth rate of 16.4 per cent, reaching an estimated $6.81 billion by 2033. Furthermore, initiatives such as Make in India and increasing investments in skill development are propelling the adoption of robotics solutions in retail environments, driving innovation and efficiency across India’s retail industry.
Summing up
India’s retail landscape is undergoing one of its most transformative phases in decades. As consumer journeys increasingly merge the stages of discovery, purchase and fulfilment into one continuous experience, the very foundation of how commerce is conducted in the country is being redefined. What was once characterised by the charm of bustling bazaars and the dominance of large-format stores is now being reshaped by powerful forces that place technology and customer-centricity at the core.
At the heart of this change lies the rise of data-driven ecosystems, where every interaction generates richer insights into consumer choices, behaviours and expectations. This has paved the way for hyper personalisation, allowing retailers to offer curated recommendations, adaptive pricing and customised product assortments tailored to the individual rather than the masses. Alongside this, traceability is emerging as a critical demand – consumers want transparency regarding the origins, authenticity and sustainability of what they buy, making supply chains more accountable than ever.
The shift is also being accelerated by omnichannel strategies. Shopping is no longer a single-channel experience confined to either physical or digital platforms. Instead, it is evolving into a seamless blend where mobile apps, social commerce, physical outlets and experiential spaces coexist and complement one another. Whether a consumer shops online and picks up the product in-store, or discovers it on social media and purchases it via mobile, the boundaries between channels are dissolving.
Adding another layer of dynamism are tech-infused experiences such as AI-powered assistants, immersive AR trials, smart checkout systems and predictive analytics. These innovations are reducing friction, turning transactions into conversations and ensuring that shopping is not only efficient but also engaging and interactive.
Ultimately, the aisles of tomorrow will move far beyond the idea of shelves stocked with products. They will become intelligent, personalised spaces – anticipating needs before they are expressed, offering recommendations before choices are made, and creating an environment where innovation drives both satisfaction and loyalty. Retail in India is not just transforming, it is leaping towards a future where every experience is fluid, data-backed and deeply human at its core. s
Nikhaar Gogna
