KPMG-How AI, AR & VR Are Rebuilding India's Shopping Experience Next Frontier
- Eddie Avil
- 8 hours ago
- 2 min read
The way India shops is changing — not gradually, but seismically. In a candid conversation with ETRetail, Mustafa Surka of KPMG India laid out a vision of retail that feels less like evolution and more like a complete reinvention: smarter operations, richer customer journeys, and technology that doesn't just assist buyers — it anticipates them.
And at the heart of this reinvention? A powerful trio: Artificial Intelligence, Augmented Reality, and Virtual Reality.
The Intelligence Layer: AI That Reads the Room
Gone are the days when retailers flew blind on consumer trends. Today's winning brands are powered by AI systems that decode customer behaviour in real time — monitoring purchasing patterns, tracking industry movements, and predicting future demand with surgical precision.
For Indian retailers navigating a market as vast and diverse as this country, this kind of intelligence isn't a luxury. It's the difference between growth and guesswork. As Surka notes, sustained competitive strength demands tools that reveal, monitor, and predict — three capabilities now accessible through intelligent platforms that were once the exclusive domain of global giants.
Try Before You Buy — Without Leaving Your Couch
One of the most tangible shifts in retail tech is the explosion of virtual fitting environments and 3D product previews. Shoppers can now try on outfits, visualise furniture in their living rooms, or preview accessories — all through AR-powered experiences on their smartphones.
The numbers validate the excitement. The global virtual fitting room market is projected to grow from $7.67 billion in 2025 to $9.38 billion in 2026, at a compound annual growth rate of 22.3%. Research And Markets By 2034, that figure is expected to surpass $30 billion. India, with its booming e-commerce base and mobile-first population, is positioned to be a major beneficiary of this wave.
Retailers integrating these technologies are discovering that digital garment trials can lift online conversion rates by 40% and cut return costs by nearly half Style3D AI — a transformation that directly impacts margins and customer loyalty.
Manufacturing Meets the Metaverse
The transformation isn't limited to the shop floor. AI and immersive technologies are rewriting manufacturing and supply chain planning too. Brands can now simulate product lines digitally, compress prototyping timelines from weeks to hours, and make smarter inventory decisions before a single item is produced.
This is retail intelligence flowing upstream — and for a market like India, where operational efficiency is as critical as consumer experience, it's a game-changer.
India's Moment: Viksit Bharat 2047 and the Digital Retail Imperative
Surka's conversation with ETRetail arrives at a pivotal moment for India. India must shift from growth at scale to growth in productivity as it enters the next phase of its development journey toward Viksit Bharat 2047, according to KPMG India. The Tribune
For the retail sector, this means digital reinvention isn't optional — it's the pathway to participating in India's centennial ambition. Organisations that embed AI-driven insights, AR-powered customer journeys, and data-led decision-making into their core operations will not just survive the next decade. They'll define it.
India's rapid digital transformation is propelling the nation toward the Viksit Bharat ambition, with strategic investments in frontier technologies including AI setting new benchmarks in the global digital economy Media Infoline, as KPMG's own research has underscored.
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