India’s E-Commerce Boom: Retail Media, AI, and Quick Commerce Set to Redefine the Market
Mumbai: MadeInMedia’s Kalpana Ravi caught up with Atique Kazi President – eCommerce, Performance and Digital Products, on the TYNY projections for e commerce, q Commerce and more
India’s online retail sector is on the cusp of explosive growth, with digital commerce expected to account for 10-11% of all retail spending in the coming years, according to Atique Kazi, President – Data, Performance, and Digital Products at GroupM.
Speaking at the launch of the GroupM TYNY report, Kazi highlighted India’s position as the world’s third-largest online shopper base and projected that the country’s total online retail Gross Merchandise Value (GMV) will surpass ₹167,000 crore in the next three years. This surge is being fuelled by increasing internet penetration, smartphone adoption, and evolving consumer behaviour.
The rapid rise of online retail is transforming ad spending, with retail media emerging as the fastest-growing digital advertising channel. Kazi pointed out that in 2024, retail media accounted for approximately 22% of total digital ad spending. Platforms like Amazon and Flipkart are no longer just marketplaces but have become powerful advertising platforms, reshaping how brands engage with consumers.
Further underlining this shift, a report from MMA India revealed that retail media has reached a staggering $30 billion in just five years, a pace much faster than traditional or social media. With its ability to drive awareness, engagement, and sales, retail media now plays a crucial role in the entire marketing funnel.
Consumer trends are changing really fast and brands need to keep themselves updated on these trends and the e-commerce landscape is evolving with new consumer behaviours
- Research online, purchase offline (ROPO) and its reverse trend are gaining traction.
- Buy Online, Pick up in-store (BOPIS) is becoming increasingly popular.
- New challenger brands are shaking up the market, forcing established players to adapt quickly.
To stay competitive, big brands are launching online-exclusive products and even acquiring challenger brands when competition becomes too intense.
AI is the key to E-Commerce success, Kazi stressed that brands cannot succeed in e-commerce without AI. Managing multiple marketplaces, each with its own data ecosystem, is humanly impossible without automation. Brands leveraging AI-powered tools are thriving, using real-time insights into shelf dynamics, pricing, availability, share of search, and competitor analysis.
Looking ahead, Kazi predicted a greater convergence of media and commerce, stating,
“In five years, every media opportunity will also be a transaction opportunity.”
On Q Commerce Kazi said that it will be the next big frontier, addressing the rapid rise described it as “crazy” and a dominant topic in brand discussions. Data shows that at least 50% of platform traffic now comes from a full-funnel approach, including pop-ups, interstitials, catalogue browsing, and post-purchase ads.
Beyond essentials, q-commerce is expanding into health, pharma, and personal care, which are expected to be the next big growth categories. Timing is also crucial in this space, with brands strategically targeting different time slots for specific products—mornings for breakfast items, weekends for snacks and mixers, and late evenings for desserts and chocolates.
As India’s e-commerce sector undergoes a massive transformation, brands must embrace AI, retail media, and quick commerce to stay ahead. With media and commerce becoming increasingly intertwined, the next few years will redefine how brands connect with consumers and drive growth in the digital marketplace.
