Experts Say 2026 Will Reward Discipline, Not Scale, in India’s D2C Sector

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January 6, 2026

Saumyangi Yadav, Entrepreneur India
Jan 6, 2026

After years of rapid growth and a sharp reset, India’s direct-to-consumer (D2C) sector is expected to settle into a more balanced phase. The period of easy funding, aggressive customer acquisition and scale-at-all-costs expansion is clearly over, experts suggest. Now, what lies ahead in 2026 is a shift towards steadier growth driven by better execution, stronger retention and clearer brand positioning.

According to Bain and Flipkart, India’s e-retail market is projected to reach $170–190 billion in GMV by 2030, driven by a growing online shopper base and evolving commerce models. As adoption deepens across Tier-2 and Tier-3 cities, high-frequency categories such as grocery and lifestyle are expected to drive a larger share of growth, making repeat purchase and habit formation critical for D2C brands.

Against this backdrop, 2026 is shaping up as the year when D2C brands are judged less on ambition and more on outcomes.

A Post-Hype Phase of D2C

Industry observers say the D2C ecosystem has clearly moved beyond its hype-driven phase. Devangshu Dutta, Founder and Chief Executive of retail consultancy Third Eyesight, describes the current moment as one of structural correction rather than contraction.

“India’s D2C ecosystem is in a post-hype phase where growth may be slower but structurally healthier,” Dutta says, adding, “Earlier growth cycles prioritised visibility and sales at the expense of profitability and consistency. Now, success is being measured by repeat rates, contribution margins and the ability to fund growth internally.”

Tighter funding is also driving this shift. With D2C investments slowing and overall capital remaining cautious, brands are now being pushed to show predictability rather than promise. Tracxn data shows Indian D2C startups raised USD 757 million in 2024, significantly lower than previous years, while overall PE-VC investments in India remained flat at USD 33 billion in 2025, according to Venture Intelligence.

As a result, Dutta notes that many D2C companies are rationalising portfolios, tightening inventory cycles and optimising supply chains. Marketing strategies, too, are evolving, with greater emphasis on retention, community-building and owned channels instead of discount-led growth.

Uniqueness Will Define Winners

If capital discipline is one defining force, speed is another. Harish Bijoor, business and brand strategy expert, argues that D2C’s next phase will be shaped by how brands respond to a faster, more fragmented commerce environment.

“The e-commerce revolution led to a more refined orientation of D2C, and that has now given way to a q-commerce revolution that is even faster,” Bijoor says, adding, “The D2C revolution is going to be leveraged by speed. A whole host of players will invest time, energy and innovation into this.”

In Bijoor’s view, traditional e-commerce is now the slowest layer in a spectrum where quick commerce is the fastest, and D2C sits in between. In such a landscape, competing purely on price is no longer sustainable. He believes differentiation will increasingly come from uniqueness and premium positioning rather than ubiquity.

“When you know that you get a particular great-tasting biryani at just one place with no branches, you will go to that place. That uniqueness is what will distinguish D2C commerce in the future,” he says.

Bijoor adds that many D2C brands have been trapped in price wars under the guise of differentiation. He also argued that brands that premiumise and resist excessive omnichannel dilution are more likely to build desirability and long-term value.

Consumers Move Beyond Metros

Structural shifts in demand are reshaping how and where D2C brands grow. India now has one of the world’s largest and most diverse online consumer bases, with growth increasingly driven by Tier-2, Tier-3 and smaller towns rather than metros alone. Internet adoption continues to deepen across rural and semi-urban India, expanding the addressable market well beyond early digital buyers.

This widening base is changing the nature of growth. Consumers are becoming more deliberate in how they spend, weighing value, quality and trust more carefully than before.

As Devangshu Dutta notes, Indian consumers have always been discerning, but rising living costs and economic uncertainty have made them even more thoughtful, pushing brands to earn repeat demand rather than rely on impulse or discount-led purchases.

“Value is not just about discounts,” he says. “It’s a balance of price, performance and trust. For D2C brands, repeat consumption has to be earned through consistent quality, transparent pricing and dependable service.”

High-frequency categories such as grocery, lifestyle and general merchandise are expected to drive much of this expansion. Bain estimates these segments will account for two out of every three e-retail dollars by 2030, reinforcing the importance of habit formation and retention-led models.

Quick Commerce Expands Discovery, Not Profitability

Quick commerce has emerged as a powerful but complex growth lever for D2C brands. The format now accounts for a significant share of India’s e-grocery demand and has scaled into a multi-billion-dollar market, becoming a key discovery channel for food and everyday consumption brands.

However, expansion beyond metros remains challenging. RedSeer data shows non-metro markets contribute just over 20 per cent of quick commerce GMV, even as platforms scale to over 150 cities, with breakeven economics in smaller towns requiring significantly higher throughput.

Praveen Govindu, partner at Deloitte India, cautions that while quick commerce has helped many D2C brands gain discovery, particularly in food and beverage, it is not a sustainable growth engine on its own.

“From a customer acquisition standpoint, quick commerce is not fundamentally different from traditional e-commerce,” Govindu says, adding, “It is an expensive channel, and competition will only intensify. Over the long term, brands cannot rely on burning capital there.”

Omnichannel Enters Its Toughest Phase Yet

As digital acquisition costs rise, India’s ad market is projected to grow nearly 8 per cent in 2025 to Rs 1.37 lakh crore, with digital accounting for almost half of the spends, brands are being pushed to diversify distribution. Yet omnichannel presence alone is no longer enough.

“Many brands talk about omnichannel, personalisation and seamless journeys, but in practice these efforts are still disjointed. In 2026, the focus will shift from intent to execution,” Govindu says.

RedSeer projects India’s retail market to cross USD 2 trillion by 2030, with nearly 90 per cent of consumption still happening offline. For D2C brands, this makes offline expansion unavoidable, but success will depend on consistent execution across pricing, inventory, service and communication.

Consumers, Govindu notes, do not consciously differentiate between online, offline or social platforms. “They simply want a consistent experience,” he says. “Even small inconsistencies can erode trust.”

AI-Led Discovery and Experience

Perhaps the most transformative force shaping 2026 will be the evolution of buying journeys themselves. Govindu sees the rise of AI-led and agentic commerce as a major inflection point.

“Conversational platforms and AI-driven assistants will increasingly influence discovery, purchase, fulfilment and post-sales experiences. What earlier happened across multiple touchpoints is now beginning to happen in one place,” he says.

This convergence amplifies the importance of content-led discovery, owned data and deep consumer understanding. Brands that can unify storytelling, commerce and service into a coherent narrative are more likely to build loyalty in an environment where switching costs are low and alternatives are abundant.

Whether growth comes through D2C websites, marketplaces, quick commerce or offline stores, experts agree that the real differentiator will be a brand’s ability to build durable consumer relationships. As investors shift focus from short-term metrics to long-term value creation like retention, margins and brand strength, the next phase of India’s D2C story is less about rapid expansion and more about refinement.

(Published in Entrepreneur India)

Saumyangi is a Senior Correspondent at Entrepreneur India with over three years of experience in journalism. She has reported on education, social, and civic issues, and currently covers the D2C and consumer brand space.

Lenskart’s Year of Big Wins

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December 7, 2025

Gargi Sarkar, Inc42
7 December 2025

The past year has been nothing short of monumental for LensKart — from reporting another operationally profitable quarter in Q2 FY26 to making the public markets leap in November, and crossing a market capitalisation of INR 70,000 Cr despite a muted stock market debut.

A clear shift this year has been Lenskart’s effort to move beyond the image of a ‘basic D2C eyewear’ brand selling prescription glasses and sunglasses. The company is now working to reposition itself as a new-age tech brand.

Further, Lenskart is rethinking where and how its products are manufactured. Currently, around 20–25% of its frames are reportedly manufactured in India. The company is ramping up its domestic production. As a new manufacturing facility in Telangana is a work in progress, Lenskart intends to gradually shift most of its manufacturing operations from China to India.

In many ways, 2025 has been about scaling up for Lenskart, and as it embarks on a fresh journey as a publicly listed company, let’s take stock of the company in 2025 and where it might be headed in 2026.

Lenskart’s Smart Eyewear Bet

Lenskart began its smart eyewear journey last year with the launch of Phonic, its audio glasses. It later deepened its push into the segment by announcing a strategic investment in Ajna Lens, a Mumbai-based deeptech company that develops AI-powered XR glasses. Back then, Peyush Bansal described the move as the “next chapter” in Lenskart’s smart glasses journey.

Cut to December 2025, the company is all set to launch its AI camera smartglasses, B by Lenskart, by the end of this month.

What makes B by Lenskart noteworthy is that it isn’t being marketed as just another pair of smart glasses. The new eyewear features an integrated Sony camera that enables hands-free photo and video capture. The glasses come with a built-in AI assistant powered by Gemini 2.5 Live. They are designed to offer natural, conversational interactions and pack in a range of advanced features — from hands-free UPI payments and live translation to wellness insights and more.

What makes the move even more significant is Lenskart’s decision to open B by Lenskart to India’s developer ecosystem. By making its AI and camera technology accessible to consumer apps and independent developers, the company is enabling integrations across categories such as food delivery, entertainment, and fitness.

“By opening its AI smartglasses to third-party developers, Lenskart is moving from a one-time product-sale model to a platform ecosystem model. In the long run, this could unlock recurring revenue streams and higher margins,” said a product developer.

Besides, the company is aligning itself with a younger customer cohort, aided by affordability, style, and technology.

“That’s what seems to define their current strategy. Over time, they’ve also brought in elements of innovation like virtual try-ons, and any product, feature, or service that brings novelty and appeals to younger customers has become part of their brand approach,” said Devangshu Dutta, the founder of Third Eyesight.

Next, the timing couldn’t be better for Lenskart to place its bet on smart glasses. An IDC report reveals that despite a slowdown in smartwatch and earwear segments in the second half of 2025, smart glass shipments shot off more than 1,000% over the last year.

However, it’s not going to be smooth sailing from here.

At its core, Lenskart is still a consumer-facing company, and it needs new products to keep its revenue growing. But the competition is already heating up. Jio unveiled its own AI-powered smart glasses, Jio Frames, at Reliance Industries’ 48th annual general meeting. And of course, Meta continues to lead the global smart glasses market.

At this point, smart eyewear is a niche category, which comes with a hefty price tag.

“Unless cost drops dramatically, mass adoption is still a distant dream. As of now, the product will only attract early adopters and tech enthusiasts, rather than the mainstream consumer,” Dutta adds.

Lenskart’s Make In India Push

Lenskart is not only widening its product range but also ramping up its manufacturing. The company currently operates centralised manufacturing facilities in India (Bhiwadi in Rajasthan and Gurugram in Haryana), Singapore, and the UAE. It also has manufacturing operations in China.

Back home, Lenskart has also signed a non-binding MoU with the Government of Telangana for setting up a greenfield manufacturing facility for optical glasses. The proposed investment stands at INR 1,500 Cr and will be supported by certain incentives and assistance from the state government.

The new production facility is expected to strengthen Lenskart’s domestic manufacturing capabilities while reducing its exposure to foreign exchange fluctuations and import-related volatility.

However, the expansion comes with its own set of challenges. While the new manufacturing plant in Telangana is expected to strengthen Lenskart’s vertical integration, it will come with a hefty cost burden.

Profitability Still A Troubling Question

The cost structure is becoming increasingly important for Lenskart. Despite its headline-grabbing profitability, the company is still operating on fairly thin margins.

Lenskart reported a net profit of INR 297 Cr in FY25, a notable turnaround from a loss of INR 10 Cr in FY24. However, market analysts caution that the business’ core operations were unprofitable. It was largely “other income” or investment income that drove the FY25 bottom line.

“Though Lenskart has increased its revenue from INR 3,789 Cr in FY23 to INR 6,651 Cr in FY25, the company’s profitability has largely improved due to a rise in other income. While it reported a PAT of INR 297 Cr in FY25, a closer look shows that the profit was driven significantly by an increase in other income, which jumped to INR 356 Cr in FY25,” SimranJeet Singh Bhatia, senior research analyst for equity at Almondz Group.

The point of concern here is that Lenskart turned operationally profitable only after its market debut. Bhatia believes that at least three to four quarters of consecutive profitability will be needed to prove the company’s underlying strength.

However, making matters worse are the company’s climbing expenses, which stood at INR 1,980.3 Cr in Q2 FY26, up 18.5% YoY.

What Lies Ahead?

The year was equally sour for the eyewear major. While its IPO generated significant buzz and saw strong subscription levels, its market debut turned out to be a muted affair.

At the upper end of its INR 382 to INR 402 IPO price band, the public issue implied a price-to-earnings (P/E) multiple of roughly 235–238 times its FY25 profits, placing it among the most expensive consumer tech listings in India.

On its first day of trading, Lenskart Solutions Ltd. was listed on the NSE at INR 395 per share, a discount of 1.74% to the issue price of INR 402. The stock, however, fell close to 9% shortly thereafter. On the BSE, it debuted at INR 390, marking a discount of nearly 3%.

After the IPO, Bhatia adds, the biggest concern surrounding Lenskart is the store-level unit economics, particularly because a significant share of the IPO proceeds is being directed toward expanding its company-owned, company-operated store network.

Entering the new year as a public company, Lenskart will have to prove that its scale-up plans are justified and that it has greater control over its balance sheet. 2026 will be a critical juncture for the company, as the next three to four quarters will be closely watched for signs of sustainable growth, improved margins, and stronger operational discipline.

[Edited by Shishir Parasher]

(Published in Inc42)

India’s retail media growth: Will new players find room against Amazon and Flipkart?

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October 10, 2025

Pooja Yadav, Exchange4Media
10 October 2025

Over the years, India’s e-commerce market has been dominated by the duopoly of Amazon and Flipkart. These platforms have not only captured consumer attention but also shaped how brands spend their marketing budgets. In parallel to this, the concept of retail media networks (RMNs), marketplaces selling ad placements to brands directly, has also grown rapidly. Not only this, it is emerging as one of the fastest-growing channels in digital advertising.

As a result, the industry is witnessing a wave of new retail media platforms entering the market. From grocery and pharmacy marketplaces to Q-comm platforms, D2C marketplaces, and ONDC pilots, all are attempting to carve out space for themselves. Yet despite these new entrants, Amazon and Flipkart continue to command the lion’s share of shopper-marketing rupees, leaving little oxygen, even for challenger players like eBay, even as it retools its India strategy.

Retail media is now outpacing social and video in growth, and in India, this expansion remains concentrated around these two dominant players. According to several experts e4m spoke with, Amazon and Flipkart dominate because of their massive logged-in traffic at the point of purchase, first-party data, and closed-loop attribution linking impressions directly to GMV. These platforms succeed by combining large logged-in audiences, direct attribution from impressions to sales, and first-party data insulated from signal loss-advantages most challengers cannot match.

Adding to this, Shradha Agarwal, Co-Founder & CEO of Grapes, highlighted the key hurdles brands face when allocating budgets to newer networks like ONDC or eBay. She noted that brands consider three main factors: whether the network can deliver the same sales efficiency, whether it reaches new users or just shoppers already accessible on Amazon, and whether the scale is meaningful. Quoting an example, she said if a brand is already generating 10 crore on Amazon, it may question whether investing in a new platform that delivers only 25 lakh is worth the effort.

Vaibhav Jain, Head of Media at First Economy, pointed out, the biggest barriers to scaling budgets across newer retail media networks like eBay or ONDC or any other, are fragmented infrastructure, limited data maturity, and inconsistent measurement. Many platforms still lack robust first-party data systems and unified reporting standards, making it difficult for brands to validate ROI at the level provided by Amazon or Flipkart.

Everyone’s building a network – but is there room?

Despite the dominance of Amazon and Flipkart, the retail media landscape is attracting new entrants, including grocery and pharmacy marketplaces, Q-commerce platforms, D2C marketplaces, and ONDC pilots, all attempting to carve out space for themselves. Among these challengers, eBay has recently re-entered India with a markedly different approach focussing on building technical and export-led capabilities rather than competing directly in the domestic consumer market.

Against this backdrop, eBay has reopened its India chapter with a Global Capability Centre (GCC) in Bengaluru, planning to host over 300 engineers across AI/ML, product, design, and data analytics. Unlike its previous consumer-facing stints in 2005 and 2013, this pivot is capability and export-led, not a direct battle with domestic marketplaces. Globally, eBay earns revenue through Promoted Listings and other advertising products, but in India, it has historically lacked domestic shopper scale and first-party data, the two critical ingredients that make retail media profitable.

This time, eBay appears to be betting on cross-border trade, technology-led capabilities, and potentially new ad-tech opportunities a model that could differentiate it from established players like Amazon and Flipkart.

Speaking on this, Lloyd Mathias, business strategist and angel investor, said, “Retail media takes off only when you have a large front-end site like Amazon or Flipkart, where advertisers want to reach shoppers at the point of purchase. I don’t think retail media is going to be a big revenue driver for eBay at all.”

Adding to this, seasoned e-commerce analyst and Datum Intelligence advisor Satish Meena noted, “Retail-media economics depend on domestic shopper traffic and first-party data both of which eBay currently lacks in India. The realistic play is export-facing promotions, enabling Indian sellers to advertise SKUs to international buyers on eBay’s global sites. That’s valuable but niche, and unlikely to rival Flipkart or Amazon’s India-scale retail-media businesses.”

Devangshu Dutta of Third Eyesight stated, “On the trade front, the company appears to be prioritising exports from India rather than competing in the domestic market, which is already hypercompetitive and price-driven.”

Until eBay establishes a stronger consumer-facing presence, retail media will not be a priority, as per experts. In the near term, its strategy is likely to focus on export-facing ads, promoting Indian sellers to global buyers. Looks like this approach is unlikely to challenge Amazon or Flipkart in India.

What it would take to break the duopoly

While eBay’s strategy has been called smart, opportunities remain. Harish Bijoor, Founder, Harish Bijoor Consults Inc, noted that communication formats are evolving. with peer-to-peer engagement gaining reliability over top-down approaches. Amazon and Flipkart follow top-down models, whereas eBay could differentiate itself through 1:1 consumer interaction.

After two failed attempts at cracking India’s consumer market, eBay’s third innings (as some may call) is fundamentally different. It is no longer chasing domestic consumers but enabling Indian sellers to export globally, leveraging eBay’s global logistics, trust programs, and buyer base. The company is also partnering with government export initiatives, MSME councils, and logistics providers, while buildin technical, analytic, and product capabilities through the Bengaluru GCC.

Mandar Lande, co-founder of Waayu, a platform working with ONDC and MSMEs to enable digital commerce, said that eBay is unlikely to build a traditional retail media business in India without a large consumer marketplace. “eBay lacks the first-party shopper data and traffic scale that power retail media networks like Amazon Ads or Flipkart Ads. However, it could still build a niche ad-tech play focused on export sellers, cross-border insights, and global buyer intent analytics essentially an “export intelligence and seller marketing’ platform rather than a domestic retail media business. While it won’t rival Amazon Ads in India, it can carve out a high-value B2B media niche rooted in cross-border commerce rather than local eyeballs.”

For challenger brands like eBay aiming to break into India’s retail media landscape, success will depend on proving incremental sales rather than just impressions, offering unique audiences, maintaining pricing flexibility, and providing ease of buying through self-serve tools and standardised metrics.

Experts told eam that while retail media and ad-tech may not be immediate revenue drivers, eBay’s export-first strategy allows the company to build scale, technology, and credibility, setting the stage for potential consumer-facing or advertising initiatives in the future.

Jain mentioned, “Closed-loop measurement is central to shifting brand spend beyond Amazon and Flipkart. It offers verifiable proof of performance, linking ad exposure directly to sales. Challenger retail media networks that can deliver credible attribution and comparable ROAs will gain traction faster. Measurement sophistication isn’t just an advantage; it’s the entry ticket to serious brand consideration.”

Speaking about how self-serve tools, standardised metrics, and competitive CPC/CPM rates influence a brand’s willingness to experiment with challenger retail media networks, Jain told e4m that these elements are critical for encouraging experimentation. They simplify campaign management, enable agility, and allow brands to benchmark performance fairly against established players.

From a brand execution perspective, Agarwal emphasised that the availability of self-serve tools is crucial for experimentation. Advertising on commerce platforms was previously cumbersome, but self-serve options now allow brands to launch campaigns at any budget, large or small, providing flexibility and control. When pricing is competitive and reporting is standardised, brands are more willing to test new networks. Early experiments have shown that allocating even a portion of retail media budgets to challenger platforms can deliver meaningful incremental sales, although such cases remain limited.

Reality check for 2025 plans

Brands in India are increasingly looking to diversify their retail media spend and reduce costs, but in a market dominated by Amazon and Flipkart, certainty still drives allocation decisions. Amazon Ads India revenue surged to 8,342 crore in FY25, a 25% year-on-year increase, while Flipkart Ads has grown 600% since 2020, capturing a significant share of marketplace marketing budgets. Until challengers can match these giants on shopper intent, identity, and attribution, most retail media budgets will remain top-heavy.

While many new entrants are trying to add variety at the edges by offering niche audiences, alternative ad formats, and export-focussed solutions, However, breaking into the core of India’s retail media market requires domestic scale, robust attribution frameworks, and access to unique audiences that cannot be replicated elsewhere.

Experts point to several structural barriers for newer networks. Fragmented infrastructure, limited first-party data, and inconsistent measurement make it difficult for brands to validate ROI at the level provided by Amazon or Flipkart.

(Published in Exchange4media)

Shiprocket Unveils Shunya AI: What The E-Commerce AI Shift Means for MSMEs

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July 16, 2025

Prabhanu Kumar Das, Medianama
16 July 2025

E-commerce logistics platform Shiprocket announced the launch of Shunya.ai, a sovereign AI model developed in India to support the country’s Micro, Small and Medium Enterprises (MSMEs), on July 11. The company claims that it is India’s first multimodal AI stack, built in partnership with US-based Ultrasafe Inc.

This announcement comes at the heels of Shiprocket filing a confidential draft red herring prospectus (DHRP) with the Securities and Exchange Board of India (SEBI) in May 2025 for their Initial Public Offering (IPO). The company is expected to raise around Rs 2500 crore in its IPO.
What does the AI model offer?

As per Shiprocket’s website, Shunya.ai is built on a freemium model, with unlimited access priced at Rs 499 a month for MSMEs. It is directly integrated into the Shiprocket platform and offers AI agents across multiple languages. According to the company, the agents can perform the following tasks:

  1. Catalogue management and creation: It automates the creation and management of catalogues, and enables product listings in multiple languages.
  2. Ad campaign creation: It can assist in generating marketing campaigns in multiple languages as well as in creating the advertising content.
  3. Automated customer support: Offers AI chatbots for customer support.
  4. Streamlining delivery and logistics: The model can find the most efficient and affordable methods for delivery, as well as tracking orders.

Shiprocket CEO Saahil Goel stated, “We’ve adapted Shunya.ai from the ground up for Indian languages, commerce workflows, and MSME needs. By embedding it directly into our platform, we’re giving over 1,50,000 sellers instant access to tools that are intelligent, local, and scalable, levelling the playing field for businesses across Bharat.” Notably, Larsen and Toubro’s AI cloud arm, Cloudfiniti is reportedly providing the underlying GPU infrastructure, ensuring that all data processing and storage remains within India.

This AI model does offer multiple benefits but it will not level the playing field against big players, as per Devangshu Dutta who is the founder of specialist consulting firm, Third Eyesight.

“While Shunya AI can help small businesses compete better, it won’t completely level the playing field. Large companies still have greater organisational capacity and capability to respond to the insights offered, including more data and bigger budgets. The real benefit for small businesses is improving how they work and serve customers within their current markets, rather than suddenly competing with giants,” Dutta said.

The E-Commerce AI Pivot

This is not the first time that an Indian e-commerce platform has unveiled a B2B AI service through its existing platform. Zepto recently launched Zepto Atom in May 2025, a real-time tool that offers consumer brands available on the platform minute-level updates, PIN-code level performance maps, and Zepto GPT, a Natural Language Processing (NLP) assistant trained on internal data that brands can query about their stock keeping units (SKUs) and performance data.

Zomato and its e-commerce arm Blinkit have also been growing their AI capabilities. Analytics India Magazine previously reported that the company’s generative AI team has grown from 3 to 20 engineers in the time-span of a year. Zomato introduced a personalised AI food assistant for users, and also uses AI in its backend to optimise delivery times and improve consumer support. Blinkit also released the Recipe Rover AI in May 2023, an AI assistant for recipes.

Other companies like Swiggy with ‘What to Eat’ AI, Myntra’s MyFashionGPT AI shopping assistant, and Amazon’s Rufus have also adopted AI assistants on their platform as a tool for the consumer.

The issue of merchant stickiness

Dutta asserts that this shift means platforms like Zepto and Shiprocket are changing from being service providers to becoming data intelligence companies. They are generating, or are in the process of generating revenue through transactional data that flows through the company.

“While this can create better insights and automation for merchants on these platforms, it also could make the merchants more dependent on the platforms. Once a merchant builds its operations around a platform’s specific AI tools and insights, it becomes much harder to switch to a competitor – creating stronger merchant stickiness. We already see this in infrastructure and core services such as banking and financial services, enterprise cloud services, building management etc. and the same is likely to happen in AI-enabled process management”, he said.

Why this matters

As Shiprocket is preparing for an IPO, Shunya.ai becomes another means to generate revenue for the company. This app can extend Shiprocket’s reach to local physical stores and MSMEs, by offering them the opportunity to provide the same experiences and support to the consumer that larger retailers and e-commerce platforms do, while automating delivery automation, cataloguing, and customer support.

Furthermore, the launch of this model is also part of the larger trend of AI integration and automation, both within e-commerce platforms for their consumers and within the back-end for optimisation.

Competition in these sectors and merchant stickiness may also become an issue, as businesses hosted on these e-commerce services may become reliant on specific AI tools and their outputs.

Questions of data privacy are also important when it comes to service companies moving towards data intelligence: How do these AI models gather and use data? The consent of end-consumers in these B2B models, data storage, and security are all issues that need to be studied as e-commerce and retails pivots towards AI.

Some Unanswered Questions

MediaNama has reached out to Shiprocket with the following questions and will update the article when we receive a response.

  1. How does Shunya AI differentiate itself from other global or domestic AI tools being used in the logistics and e-commerce sectors such as Zepto Atom or Shopify Magic?
  2. What data is Shunya AI trained on? Is the training dataset sourced exclusively from Shiprocket’s operations, or are third-party data streams also used?
  3. What data will Shunya AI’s marketing campaign models access? How will it ensure privacy and data protection of the end consumer of the business who is using these models?
  4. How does Shiprocket ensure compliance with Indian data protection laws, especially given the scale of customer and seller data being used?

(Published in Medianama)

Seamless Customer Experience in an Omnichannel Retail World

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May 8, 2024

At the recent Phygital Retail Convention in Mumbai, Devangshu Dutta anchored an engaging “Fireside Chat” with Bhavana Jaiswal of IKEA India and Kapil Makhija of Unicommerce , on retailers engaging with their customers across channels and formats, and the opportunities as well as challenges in managing experiences seamlessly across online and offline interfaces.

Watch the video at this link: