As Business Head of Shopsy at Flipkart, Prathyusha Agarwal is leading the effort to make online shopping easier, more accessible, and more affordable for value-conscious Indian consumers. Using AI, localized engagement, and innovative technology, she is building a platform that connects millions of shoppers with products that fit their needs and budgets. With a deep understanding of digital transformation and consumer behavior, she is shaping the future of value-driven e-commerce in India. In this Q&A, she shares her insights around addressing evolving consumer needs, enabling inclusive digital commerce, and unlocking new growth avenues for sellers and shoppers alike.
India’s e-commerce boom is being driven by shoppers from Tier 2 and smaller cities, who look for affordable yet quality products. Today, over 60% of all e-commerce orders come from these regions, with nearly half of all online shoppers residing in Tier 2 and Tier 3 cities. This shift has made Bharat the key growth engine for digital retail, contributing to three out of every five orders on leading platforms.
The next phase of India’s e-commerce boom will be driven by accessibility and empowerment. Digital adoption across Bharat is unlocking new opportunities, and AI-powered discovery, vernacular interfaces, and frictionless payments are ensuring that first-time shoppers can navigate and trust online commerce with ease. Meanwhile, small businesses are leveraging smart selling tools and data-driven insights to expand their reach in a competitive marketplace.
As consumer behavior shifts, the demand for affordable, quality products continues to rise, and technology is key to bridging this gap. AI-led personalization, influencer-driven discovery, and community-led shopping models are redefining how users engage with value commerce.
In this Q&A, Prathyusha Agarwal, Business Head of Shopsy at Flipkart, shares her insights on addressing the evolving personalized needs of Indian consumers.
What makes the Indian market and consumer segment unique, and how has it evolved over the last couple of years?
India’s consumer market is one of the most diverse and dynamic in the world. Regional preferences, price sensitivity, and rapid digital adoption shape it. Over the past few years, rising disposable incomes, greater internet penetration, and the demand for convenience have significantly reshaped shopping behavior.
E-commerce has expanded beyond metros, reaching Bharat’s value-conscious consumers, who comprise nearly 70% of the population. These shoppers prioritize affordability, durability, and utility, while urban consumers focus on convenience and brand experience. At the same time, a growing segment is willing to pay a premium for quality, especially in categories like electronics, fashion, beauty, and wellness. A significant shift in the rising preference for locally made products, driven by government initiatives and consumer sentiment. Indian consumers are at the intersection of global trends and deep-rooted cultural influences, requiring businesses to be agile and hyper-local in their approach.
Premiumization is further reshaping the market with 70% of Indian consumers willing to pay more for products that offer better quality or unique experiences. This presents an interesting challenge for hyper-value platforms like Shopsy, where affordability must coexist with aspirational consumption. At Shopsy, we bridge this gap by offering affordability without compromising on quality. Premiumization isn’t about higher prices — it’s about better reliability, superior experiences, and value-driven products. We focus on making premium accessible by balancing cost efficiency with curated, high-quality offerings. As digital access grows, the appetite for better products rises, and Shopsy is positioned to meet these evolving aspirations while staying true to its core value proposition.
How does Shopsy curate an extensive selection while catering to Bharat’s evolving shopping preferences?
Shopsy is built to make shopping affordable and accessible for Bharat consumers. Our vast selection is driven by a strong network of sellers and a tech-enabled approach that ensures customers always find what they need at the best prices. We simplify seller onboarding, making it easy for businesses to scale, while AI-driven insights help us track shopping trends and regional preferences to curate high-demand products efficiently. Our lightweight app is optimized for budget-friendly devices, ensuring seamless access even in low-connectivity areas.
Recent trends highlight strong growth in fashion, home essentials, and household products. Ethnic wear and affordable Western styles continue to be top choices, reflecting the demand for budget-friendly yet stylish options. Home essentials, including decor, kitchenware, and storage solutions, are also seeing a surge as families look for cost-effective ways to enhance their living spaces. Data from our End of Season Sale shows a 3x increase in demand for budget-friendly, stylish clothing, reinforcing that shoppers seek both value and variety.
For peak shopping seasons, we collaborate closely with sellers to optimize sourcing and logistics, ensuring fresh and diverse selections that meet surging demand. The evolving preferences of Bharat’s digital shoppers emphasize the need for a balance between affordability and aspirational shopping. At Shopsy, we remain committed to delivering a seamless, value-driven shopping experience while continuously expanding our selection to meet these changing needs.
What about Gen Z customers? What differentiates them from the rest of the market, and how are platforms like Shopsy catering to them, both from a selection and user experience perspective?
Gen Z in Bharat is redefining shopping with a unique blend of digital savviness, value-consciousness, and a strong preference for self-expression. Unlike their urban counterparts, this segment isn’t just looking for the latest trends; they seek affordability without compromising on style, regional relevance, and authenticity. This segment forms a significant part of our customer base, with 70% of users from Tier 2+ cities and 90% of new transacting customers being millennials and Gen Z.
From regional ethnic wear to trendy fast fashion, we ensure that young shoppers in Tier 2+ cities and beyond have access to choices that reflect their modern preferences. Beyond selection, Gen Z thrives on social engagement, interactive discovery, and seamless transactions. Shopsy’s gamified shopping experiences, bite-sized content, and intuitive, lightweight app design ensure a fun, engaging, and hassle-free journey. Features like personalized recommendations, peer-driven reviews, and social commerce elements make shopping feel more participatory and rewarding for them. By integrating discovery with entertainment, Shopsy creates an experience that resonates with Gen Z’s digital-first mindset while keeping affordability at its core.
What’s next for Shopsy in terms of enhancing its platform and services to cater to emerging trends and support future growth? How do you see AI factoring into Shopsy’s future?
Looking ahead, we see several trends shaping the future of online shopping in India. Firstly, there’s a growing demand for localized content and products that cater to diverse consumer needs across different regions. Furthermore, influencer marketing-led virality and user-generated content-led discovery, are likely to play a significant role in how consumers discover and interact with brands. We’re excited to explore new ways to engage with our audience, making shopping a more immersive and interactive experience.
At Shopsy, we plan to continue pushing the envelope by leveraging cutting-edge technology, such as AI and machine learning, to personalize shopping experiences and optimize our offerings. This allows us to provide our customers with even greater value while ensuring that we keep our selection fresh, relevant, and stylish.
For sellers, AI helps streamline catalog management, automate demand forecasting, and provide insights to boost conversions. By integrating AI at every touchpoint, Shopsy is not just making hypervalue shopping smarter but also ensuring that every user, whether a first-time online buyer or a small seller, experiences unmatched ease, affordability, and engagement.
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