India's digital economy sees shifts in retail media and e-commerce models

India's digital economy is undergoing significant shifts in e-commerce and retail models. Flipkart is scaling its retail media operations by tailoring advertising to a mobile-first, price-sensitive market. Unlike Western models, Flipkart's strategy integrates sponsored listings, search ads, and video formats directly into the mobile shopping experience to cater to high-intent users and rapid e-commerce adoption.

Simultaneously, the digital beauty and personal care sector in India is facing growth challenges. A report by Kearney indicates that digital-first brands encounter hurdles as they scale. While low data costs have enabled massive reach, brands often face rising acquisition costs once they exceed certain revenue thresholds. To achieve significant scale, these companies must transition from digital-only models to omnichannel strategies, as physical retail still accounts for approximately 75% to 80% of India’s beauty and personal care market.