AI Shopping Assistants Transform India's Festive Shopping as Millennials Lead Adoption

AI Shopping Assistants Dominate India's Festive Shopping Season

India's festive shopping season is experiencing a fundamental shift as AI shopping assistants become the preferred tool for millions of consumers making purchase decisions. According to InMobi's annual report "The Marketer's Guide to India's Festive Season 2026," 4 in 5 shoppers are actively seeking AI-powered shopping assistants to guide their festive purchases1

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. This marks a decisive pivot in how Indian consumers explore, evaluate, and finalize their festive buys. The report, based on an on-device consumer study conducted between August 7 and 11 covering 1,110 consumers across Android and iOS devices from Tier 1 to Tier 4 cities, reveals that AI's role in reshaping shopping behaviors extends beyond simple product searches to influencing the entire purchase journey3

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Millennials Outpace Gen Z in Embracing AI Recommendations

Contrary to expectations, it's not Gen Z but millennials who are leading the charge in millennials adoption of AI for festive shopping. Millennials demonstrate greater enthusiasm for AI-based recommendations for festive looks and products than Gen Z by 10 percentage points1

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. Specifically, 82% of millennials expressed interest in AI recommendations compared to 71% of Gen Z shoppers3

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. Both generations show strong alignment on smart search suggestions, with 90% of millennials and 88% of Gen Z indicating they would use such features. This generational divide suggests that millennials, who have witnessed the evolution of digital commerce, are more comfortable delegating purchase decisions to AI tools than their younger counterparts.

Smart Search Suggestions and Virtual Product Try-Ons Lead Feature Adoption

Among AI-assisted shopping features, smart search suggestions emerged as the most popular, attracting interest from 89% of respondents3

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. Virtual product try-ons and "complete-the-look" suggestions followed closely at 81% each, while 73% showed interest in voice search or chat assistants. The practical impact of these tools is already measurable. Fashion brand The Bear House reported that its AI-powered virtual try-on experience helped reduce website bounce rates by 50%, while add-to-carts rose 2.5 times and overall conversions increased fivefold3

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. Major Indian e-commerce platforms including Flipkart, Bigbasket, Ajio, and Firstcry have been working to create their own AI storefronts, while Myntra has introduced AI-assisted shopping features such as Maya1

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Premium Spending Intent Spans Across Demographics

India's festive shopping season is witnessing robust spending intent, with 3 in 5 shoppers planning to spend more than ₹10,000 this festive season1

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. High spending intent spans across operating systems, with Android users demonstrating remarkable purchasing confidence—22% plan to spend between ₹25,000 and ₹50,000 compared to 15% of iOS users, while both share equal representation in the ₹50,000+ budget bracket2

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. Findings presented at the NIQ Insight Summit India 2026 noted that 92% of surveyed urban Indian shoppers had taken help from at least one AI tool while shopping in the past month1

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. Another festive sentiment survey by Reliance's JioStar indicated the average festive transaction size may jump 46% to ₹24,020 from ₹16,500 per shopper1

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Tier 2 City Consumers Emerge as High-Value Segment

Tier 2 city consumers are emerging as a critical demographic with purchasing power that matches metro shoppers. Consumers in these cities are planning budgets in the ₹10,000-₹25,000 range at rates similar to metro shoppers2

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. Festive spending is also becoming increasingly gender-neutral, with men and women showing similar willingness to spend across mid-to-high budget ranges1

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. This democratization of premium spending reflects rising wealth across India's urban landscape and suggests brands must expand their targeting beyond traditional metro-focused strategies.

Multi-Screen Discovery and Ambient Shopping Reshape Consumer Journeys

Discovery is no longer limited to deliberate search actions but is becoming increasingly ambient and always-on. The report found that 75% of consumers pay attention to festive content on idle TV screens and 67% browse their mobile devices simultaneously while watching television2

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. This ambient discovery pattern means shoppers can encounter products across multiple touchpoints throughout their day. The study found that 73% of shoppers make their final purchases online, with 58% researching and buying online and another 15% researching in stores before purchasing online3

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. Online reviews remain important with 75% using them before buying, while 53% turn to search and 47% use social or influencer content3

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Brand Trust Outweighs Discounts in Purchase Decisions

Despite the proliferation of AI tools and discount-driven marketing, brand trust remains the strongest driver of consumer decision-making. Across most age groups, regions, and income levels, shoppers rank brand trust higher at 27% overall than discounts at 22%2

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. This finding underscores that while AI shopping assistants can facilitate discovery and comparison, the final purchase decision still hinges on the credibility and reputation brands build over time. Pavitra Gupta, Vice President & General Manager - India at InMobi, emphasized this shift: "Today's festive shoppers expect hyper-relevant, frictionless discovery whether they are on their smart TV, lock screen, or everyday apps. For marketers, this means moving beyond high-volume advertising to creating AI-powered experiences that are useful in the moment, build brand trust and help consumers move seamlessly from discovery to decision"1

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Product Categories Expand Beyond Traditional Festive Purchases

While apparel and footwear remain dominant festive purchases accounting for 50% of what shoppers will buy, the festive basket is expanding beyond traditional categories1

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. Jewelry shows strong purchase intent at 40%, followed by grocery and daily essentials at 37%1

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. This diversification suggests consumers are viewing the festive season as an opportunity for comprehensive lifestyle upgrades rather than limiting purchases to traditional categories. The data indicates that brands across sectors—not just fashion—should prepare for elevated customer engagement during this period and leverage AI tools to capture attention across these expanding categories.