Consumer behaviour used to change in cycles. Today, there are changes in pulses.
In every major retail market, from India and Southeast Asia to North America and Europe, shoppers are behaving in ways that defy old playbooks. They are spending more consciously, switching brands more seamlessly, and expecting more value from every rupee or dollar they spend. Meanwhile, retailers are navigating an unprecedented mix of global complexities: inflation, tariffs, geopolitical instability, supply chain fluctuations, and the rapid mainstreaming of AI.
In this environment, the question is no longer how much consumers will spend – but how quickly their expectations will shift. Retailers who anticipate these shifts will be well-positioned to thrive. Those who don’t will chase trends instead of shaping them.
The past five years have reshaped retail psychology more than the previous fifteen combined.
In India, these disruptions collided with local phenomena:
UPI revolutionised payments, quick-commerce shrank delivery expectations, GST changed pricing structures, and Tier-2/Tier-3 consumers emerged as major online buyers.
Globally or locally, one truth now holds: volatility is not a phase – it is the operating system of modern retail.
While the triggers may differ – inflation in one market, job insecurity in another, and tariff pressures elsewhere – the consumer response is surprisingly consistent worldwide.
Consumers are trying to stretch their budgets:
This is happening in Mumbai and Munich, as well as in Boston and Bengaluru.
Consumers increasingly finance lifestyle expenses, not just big-ticket items.
But with household debt rising globally, this behaviour carries long-term risk.
One of the most striking shifts is the democratisation of value shopping.
Affluent households in India are choosing DMart for essentials.
Higher-income consumers in the West are increasingly shopping at Aldi, Costco, and other discount chains.
The new consumer philosophy: premium when it matters, value when it doesn’t.
No matter which festival anchors the season – Diwali, Christmas, Chinese New Year, Eid, Thanksgiving – global shoppers now approach holidays with a similar mindset.
Budgets are rising modestly, but expectations have rationalised. Consumers are looking for reasonable deals, not pandemic-era 50% off fire sales.
A single shopper may use:
Nearly half of shoppers now use AI to explore products or gifting ideas.
However, the rest avoid AI because it feels impersonal – a reminder that technology cannot replace emotional resonance.
In India, platforms such as Meesho, Ajio, Instagram Shops, and Myntra are shaping the discovery experience.
In the US and UK, TikTok Shop is altering impulse buying.
Retailers need to serve every channel where consumers choose to browse, research, or purchase.
Discount expectations have normalised.
What consumers now want is clarity, credibility, and fairness.
Retailers should highlight:
Rather than blanket discounts:
Consumers value precision over aggression.
Retailers worldwide are discovering that having more SKUs does not necessarily translate to increased sales.
Tariff pressures and high fulfilment costs make curation essential:
AI is not a gimmick. It is fast becoming the first touchpoint in discovery.
Retailers must invest in:
Ignoring AI is equivalent to ignoring the consumer.
The modern shopper is multi-channel by default.
Winning brands are experimenting with:
Increasingly, consumers do not discover products through traditional ads – they find out about them through people, algorithms, and moments.
In a world where behaviour shifts quarterly and expectations shift monthly, retailers can no longer assume that yesterday’s strategy will deliver tomorrow’s results.
The real question leaders must ask is:
Relevance is no longer a long-term strategy.
It is a daily commitment.
Retailers who embrace anticipation, build agility into their systems, and create genuine value will not only survive this era of volatility – they will lead it.
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