Amazon Sees Premiumisation and Rising AI Adoption Ahead of Great Indian Festival 2026

Amazon India is seeing a shift in consumer electronics buying patterns, with customers increasingly looking at premium devices, AI-enabled products and more informed purchase decisions ahead of the Amazon Great Indian Festival 2026.

Zeba Khan, Director – Consumer Electronics, Amazon India, said consumers are becoming more research-led in their technology purchases, while premiumisation and artificial intelligence are emerging as important factors influencing buying decisions.

According to Khan, customers are increasingly evaluating products based on the features and value they offer rather than simply choosing entry-level devices. This trend is being seen across categories including smartphones, laptops, televisions and other consumer electronics.

AI is also becoming a more important consideration for technology buyers. Amazon has seen a significant increase in demand for AI-powered devices, particularly laptops. Around one-third of laptops sold on Amazon are now AI-powered, compared with about 5% two years ago.

Khan said customers are attracted to devices by their AI capabilities, but performance remains the deciding factor. “They are drawn to the product by the AI features, which generate interest, but ultimately their choice is based on performance,” she said.

The growing interest in AI-enabled products comes as Amazon expands the tools it provides to help customers research and compare technology products. The company is using AI-powered features including Rufus, Lens AI, Review Highlights and Smartchoice to help shoppers understand product specifications and identify devices based on their requirements.

Amazon is also seeing a narrowing gap between technology purchases in metropolitan and smaller cities. Khan said customers in Tier 2 and Tier 3 cities are increasingly adopting premium products and showing buying patterns similar to those in larger urban markets.

“Bhopal and Bangalore are shopping on the same day today,” Khan said, highlighting the convergence in shopping behaviour between smaller cities and metros.

Amazon said 18% of its new customers and 65% of its orders now come from Tier 2 and Tier 3 cities, while more than 70% of new Prime members come from non-metro cities.

Premiumisation is also becoming visible in these markets. In smartphones, non-metro cities account for around 40% of value in recent months, with their share of purchases above Rs. 30,000 also increasing.

Khan said customers are increasingly willing to buy premium devices as their first product in categories such as laptops and tablets, rather than starting with an entry-level device and upgrading later.

Affordability, however, remains an important part of Amazon’s strategy for the festive shopping season. The company is focusing on longer EMI tenures, no-cost EMI options, Amazon Pay Later, exchange offers, bank discounts and cashback to make higher-value purchases more accessible.

Khan pointed to the shopping behaviour observed during Prime Day, saying, “One in four purchases across mobiles, TVs, electronics and large appliances were on EMI, and four out of five of those were on no-cost EMI.”

Amazon’s Great Indian Festival 2026 is scheduled to begin on October 8. The company has said customers will have access to deals across smartphones, electronics, fashion, beauty, home essentials and other categories, with additional benefits for Prime members.

Ahead of the sale, Amazon has also expanded its operations network, adding 20 new fulfilment centres, six new sort centres and 150 new last-mile delivery stations across 118 cities. The company has also created more than 160,000 seasonal work opportunities across its India operations network.

With premium products, AI-enabled devices and affordability options shaping this year’s festive shopping season, Amazon expects technology purchases to become increasingly research-driven as consumers compare features, performance and value before making their final decisions.

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