Most of what a consumer chooses to shop defines the retail trends. To meet these vast consumer choices and stay on top of the market, retailers adopt technology, new practices, and shoppers trends. Might as well say, AI and automation have been the frontrunners in revolutionizing the retail landscape.

‍

At Fynd, we tried to discern these retail trends for you in 2025, and how retailers can best optimize their businesses.

‍

2025 is anticipated to be another exciting year for retailers, with adoption of practices yielding great results. AI and automation will continue to dominate the retail trends along with systems such as supply chain management, omnichannel retailing, GenAI-based models and more.

‍

The impact of GenAI is real! According to EY,

‍

Retail investments in AI are expected to soar to USD 31 billion by 2028

‍

and 

‍

GenAI could potentially elevate the retail sector’s profitability by 20%

‍

Angshuman Bhattacharya, national leader, Consumer Product and Retail sector, EY India, said in an official press note, 

‍

Gen AI is not just a technological leap; it's a seismic shift in how retailers adapt, innovate, and enhance customer experiences. With 71% gearing up for adoption, it's clear that the retail landscape is on the brink of a transformative era.

‍

Let’s delve into the retail trends and technology in retail, in 2025.

Trends that are shaping the retail industry

‍

1. Experiential retail—Immersive and interactive store setups

‍

Experiential retail aims to provide immersive experiences to the customer by having in-store setups. Not inclined towards the sales aspect, experiential retail refers to offering customer engagement. For example, having an aesthetic setup in store. Since the boom in social media, consumers are likely to promote or revisit any store that is “Insta-worthy”!

‍

It is a trend where retailers create a store experience that reflects well with the brand identity; and makes people revisit the store.

‍

In the year 2025, retailers can expect a spike in sales through unique promotion concepts. 

‍

Practical examples of experiential retail:

‍

• Pour Moi, a skincare brand has an interactive map with detailed climate-based solutions specific to regions in real-time.

‍

• Uniqlo's store in New Delhi is a great example of creating exciting ways to connect with customers. This Japanese apparel brand has invented a 3D knit machine for customers to knit their own sweaters on the spot. The store also provides an option to get designs printed on t-shirts, making every visit creative and memorable.

‍

• H&M's Barcelona store has a digital holographic mannequin that customers can customize to try on different clothing combinations. Mirrors are placed with color-changing LED lights to create a shareable backdrop.

‍

The experience provides a touchscreen panel through which customers can pair looks with songs, blending the entire journey with a fun try-on experience.

‍

2. Retail as a service (RaaS)

‍

Retail as a service is an approach for building an infrastructure of various services such as inventory management, POS systems, CRMs, and offering a streamlined array of solutions to retail businesses. The focus is more on “retail storytelling” right from shopping experiences, to managing orders and providing easy checkouts.

‍

RaaS can be seen in tandem with experiential retail. For example, retail stores look to provide services such as cafes and bookstores where consumers can enjoy a coffee break at the side. These shared experiences give rise to enhanced consumerism providing customers the ease and comfort.

‍

‍

‍

Practical examples of RaaS:

‍

• Women’s retailer Francesca’s boutique-like feel at their store makes customers feel like they are entering into a fashionista’s closet. As customers grab items they like, the sales associate will place them in a personalized dressing room, with the customer’s name written in chalk.

• To add more to the feel of a dressing room, the sales associates act like friends suggesting outfits, accessories, and what goes well for the desired occasion.

‍

To add more to the feel of a dressing room, the sales associates act like friends suggesting outfits, accessories, and what goes well for the desired occasion.

‍

Another major chunk of RaaS includes providing better options for customers with products by cross-selling and upselling. Providing a better return or exchange policy also accounts for better serviceability.

‍

RaaS opens the door to being a part of a shared retail infrastructure, allowing several brands to rent space within the shared infrastructure.

‍

3. Social commerce

‍

According to a report published by Meta,

‍

The current social commerce market in India is valued at USD 1-2 billion, and 86% online users discover new quick commerce brands or products via Meta platforms.

‍

This retail trend stands out for Gen-Alpha. GWI says,

‍

Gen-Alpha are 34% more likely to turn to socials for shopping, than last year.

‍

Use of social media for D2C brands is booming and driving GenZ’s choices.

‍

According to EMR Recruitment,

‍

Social commerce sales are expected to account for 17% of the total ecommerce sales by 2025.

‍

Shoppable posts will be the ones to lookout for. This allows customers to shop directly from the social media posts on Instagram. Social commerce will overall give rise to social merchandizing, and separate inventory management.

‍

For example; Baby Aroosa on Fynd Platform is using Instagram to drive traffic and increase sales to Rs 4-5 lakhs per month. The brand has been using social commerce through Fynd Platform’s Instagram Extension.

‍

‍

‍

4. Sustainability

‍

For the long-term view of sustainability, the retail industry is focused on abiding by Environmental, Social, and Governance (ESG) guidelines established by ESG compliance frameworks and regulatory bodies. Consumers, especially GenZs and the Millennials prioritize eco-friendly products and support the global sustainability movement.

‍

In a survey conducted by Deloitte,

‍

92% of millennials and 89% of GenZs want businesses to do more for customers to make sustainable purchasing decisions.

‍

Customers also look out for eco-friendly packaging with increasing awareness about materials such as paper and paper boards over plastics.

‍

Sustainability is a core value for retailers that helps them be attractive to ethical stakeholders, and is a key driver of economic growth.

‍

‍

‍

Practical example of sustainability:

‍

‍Neeman's has gained great popularity in recent times by incorporating eco-friendly materials such as organic cotton, merino wool, and recycled plastics, followed by a sustainable production process.

‍

‍

Neeman’s commitment to sustainability promoted paper-based packaging, and brought in revenues worth over Rs 100 crore in FY2023-24.

‍

5. Underconsumption as a trend

‍

The idea of spending less and avoiding waste isn’t just a fleeting social media trend anymore. Economic uncertainty, concerns about environmental damage from overproduction, and regret from impulse buying (“retail hangxiety”) are encouraging people to spend smarter and more intentionally.

‍

Practical examples:

‍

• Retailers like Tesco are tapping into “nudging,” where AI helps shoppers become aware of repetitive, costly habits (like frequently buying expensive snacks) and suggests more budget-friendly choices, boosting customer loyalty.

‍

• By Rotation, a platform for renting and buying fashion, has seen users rent the same item multiple times and eventually decide to buy it, treating it as a well-thought-out purchase rather than an impulse buy.

‍

People are embracing “strategic consumption” where purchases are seen as investments. In essence, this trend combines smarter spending, environmental consciousness, and technology-driven solutions to reduce waste and maximize value in personal consumption.

‍

6. Brand storytelling

‍

Brand storytelling is the one retail trend to look out for in 2025. Customers are more likely to go for a brand that tells a story they feel connected with.

‍

Brands can leverage Fynd & Know to narrate an effective brand or product story, or USP of a product with a simple scan on the customer’s end. This feature can be used to discern different stories, some special features of the product, or technical information such as manufacturing processes.

‍

According to a study by Sprout Social,

84% of consumers say that they buy from brands they feel an emotional connection to.

‍

Practical examples of brand storytelling:

‍

• Tata Tea 1868, an exclusive collection was launched to celebrate Tata Group’s legacy of completing 150 years. The product is available in 13 variants which tell the stories of how each tea is born in a variety of flora, fauna, climate and topography, along with spices and flavours.
  ‍
• It is a celebration of diversity with each selected variant having a story to tell. Through this launch, Tata leveraged its D2C model, and marked its entry into the premium tea space.

‍

‍

‍

7. Tech-empowered retail staff

‍

With tech being at the forefront of all activities automated for customers and their touchpoints, customers still crave effective human interactions too. This gives more importance to the front-end staff and calls for them to have advanced skillsets. With tech and AI, they can focus on more value-addition jobs.

‍

Retail staff requires training about products and various systems in place within the store. Retailers need to think about how they are investing in their own people, and provide incentives to empower their store staff.

‍

Store staff can be provided and trained with tools such as data analytics to collect in-store information. This is where Fynd Store OS can enter the picture!

‍

With the adoption of Fynd Store OS, retailers can optimize employee management and training through incentives. Store staff can access reports on best-selling products and highest-selling categories.

‍

By deploying Fynd Store OS, it empowers store staff to learn the full potential of omnichannel tech and how they can use it to progress in their career. Comprehensive training videos ensure every employee knows how to showcase product catalogs, customize carts, and assist customers during checkout using omnichannel apps.

‍

AI for retail in 2025

‍

8. Product recommendations

‍

“Why do chatbots always sound like robots?” That was the frustration with the old-school rule-based chatbots. But things have changed.

‍

Today’s AI chatbots are smarter and make life easier for both retailers and customers. Using advanced algorithms and data, they don’t just answer questions—they predict what customers want, give personalized recommendations, and make interactions smooth and enjoyable.

‍

These modern chatbots are more like friendly helpers and less like annoying robots, creating better experiences for everyone.

‍

Practical examples of product recommendations:

‍

For example, Tira, built on the Fynd platform, can recommend products based on the customer’s purchase history. 

‍

Product recommendations taken to the next level—GlamAR, a provider of AR and VR solutions for ecommerce businesses and retailers, has recently introduced AI skin analysis. It gets to the heart of each person’s skincare story by measuring everything from wrinkles to hydration.

‍

The customer’s preferences in terms of ingredients of the products based on their skin type are recorded, and an enhanced product recommendation is made.

‍

Another exciting way to enhance customer experiences is through AI chatbots. These smart assistants do more than just predict and recommend—they transform customer interactions across touchpoints.

‍

Take Copilot.live, for example. By training AI bots on product catalogs, it enables product discovery and contextual add-on suggestions. For instance, the bots can gather user inputs on desired features and recommend the best suggestions or complementary items. Deployed as a widget, web page, or integrated with WhatsApp, making the experience not only intuitive but also highly engaging.

‍

‍

9. Supply chain and cube utilization

‍

For the supply chain, there could be variables such as transport breakdowns, traffic obstruction, and any disruption due to natural phenomena. The use of AI can help in creating a dynamic method of estimation of delivery date and time of arrival, considering all the factors for each shipment.

‍

AI can monitor variations affecting the supply chain. It will read the data history that’s been followed by the supply chain and can be tuned to suit different product variations.

‍

According to a report by Deloitte,

‍

AI-driven demand forecasting models help companies reduce inventory holding costs by up to 20%

‍

AI can be trained to understand the cube utilization aspect for effective warehouse performance, as well as logistics operations. AI will help you in matching the SKUs and occupancy percentages based on the boundaries defined, and available space inside the warehouse or a container.

‍

‍

‍

‍A broader perspective

‍

Businesses must embrace AI and innovations to meet evolving consumer demands and keep up with the latest retail trends. AI-powered insights from digital platforms, POS systems and social media can identify product gaps and enhance supply chain responsiveness to trends.

‍

The rise of quick commerce presents opportunities for private-label launches, seasonal items, and express delivery to retain market share.

‍

Premium segments like beauty, fashion, and electronics are thriving, driven by affluent consumers. Personalized marketing, expanded high-end offerings, and elevated in-store experiences, such as trials and events, can deepen engagement. Cross-selling, upgrades, and targeting high-frequency shoppers can boost revenue, while predictive analytics can unlock opportunities in replacement purchases for durable goods.

‍

At Fynd, we acknowledge these retail trends and practices, and strive to keep the retailers ahead of the game. In our bucket of solutions, we enable you to pick on these trends and technologies. Explore our solutions and stay ahead of the curve with quick adoption!