88% of Indian consumers abandon purchases due to information overload, reveals Accenture report

Accenture launched a report titled ‘The Empowered Consumer’ which is based on a survey of 19,000 consumers across 12 countries, including India. The research highlights that 76% of Indian consumers feel overwhelmed by too many choices, and 74% say they are bombarded by advertising. Consequently, 88% have abandoned purchases in the last three months of 2023.

The report emphasises the urgent need for brands to utilise generative AI (gen AI) to reduce decision-making ‘noise’ and enhance engagement, loyalty, and sales. It also notes that 67% of people in India perceive no improvement or an increase in the time and effort needed for purchase decisions. This includes 40% who find it more challenging and 28% who see no change, while 33% believe it takes less time and effort.

Across categories, the research indicates challenges in purchase decision-making, with examples such as buying snacks being harder than other groceries and purchasing a moisturiser being as complex as buying a washing machine.

“Our survey shows that Indian shoppers are experiencing greater ‘decision stress’ at every stage of the buying journey. Consumer-facing companies will need to rethink how products and services are branded and marketed, making it easier for shoppers to navigate through the noise and make confident purchase decisions. With new technologies such as generative AI, there’s a huge opportunity to not only become data-powered but also delightfully human in a way that has just not been possible until now,” Vineet R Ahuja, managing director and lead – Strategy & Consulting, Accenture in India said.

The report suggests that consumer empowerment through generative AI and other technologies will transform brand-consumer relationships. It predicts rapid adoption of AI-powered advisors by consumers in the next two years, with 82% of Indian respondents open to using conversational generative AI solutions while shopping.

Accenture’s research also underscores the importance of leveraging generative AI to improve operational processes and unlock value at scale. For instance, travel companies are exploring ways to reinvent the booking process to enhance the entire travel experience.

“Overall, the use of generative AI and AI-powered advisors in retail and consumer goods can enable companies to better understand their customers, deliver relevant and engaging experiences, and drive business growth. In fact, it offers an opportunity to capture the entire purchasing journey, from inspiration to ideation to transaction, as part of a single, seamless, natural conversation,” Amneet Singh, managing director and lead – Products, Accenture in India said.

Additionally, the report emphasises the significance of meeting consumer expectations and addressing frustrations, such as product unavailability. It suggests using generative AI tools to enhance the shopping experience, build trust, and foster loyalty.