This article originally appeared on CXO Today.

India is the second-fastest-growing eCommerce market in the world today and is undergoing a remarkable transformation in its eCommerce scene. Thanks to widespread mobile internet access and some of the lowest data costs in the world, millions of Indians are logging on every day, whether they’re in cities or rural areas. This opens up some exciting opportunities for businesses that are ready to adapt their strategies.

What makes this eCommerce growth story unique is the demographic dividend that India enjoys. More than 65% of the population is under 35, which means we have a young, literate crowd that’s becoming more financially stable and comfortable with modern technology. For this generation, online shopping isn’t just a trend, it has become their default behaviour.

These days, the typical Indian shopper takes quite a journey before making a purchase. They might first see a product on their Instagram feed, where an influencer is flaunting a trendy jacket. That sparks their curiosity, and they head online to check out the brand. Then they might get hit with an ad for that same jacket. It can be tricky to determine which of these touchpoints actually nudged them to make that final purchase.

In India’s eCommerce market, localization is absolutely essential for brands that want to thrive. A one-size-fits-all strategy just doesn’t cut it in such a diverse and complex market. With so many languages, cultures, and unique regional preferences, brands really need to shape their strategies to connect with local consumers. This means digging into details like language preferences and popular payment methods, because what works in one region might not be effective in another.

Take language, for example—some people prefer shopping in English, but others feel way more comfortable using their native language. It’s the same story with payment options: digital wallets might be popular urban areas, but cash-on-delivery remains a preferred option in m any rural regions. Similarly the rise in popularity of social media means that brands must incorporate these channels into their digital marketing strategies to engage better with the younger consumers. Successful eCommerce strategies must be built on a deep understanding of these local nuances to truly connect with customers.

Additionally, adopting a mobile-first approach has become non-negotiable in this market. With over 70% of online purchases now happening through smartphones, brands must ensure that their websites and apps are optimized for mobile use. That means fast loading times, easy-to-navigate interfaces, and an all-around smooth experience, because shoppers now expect everything to work seamlessly on their phones.

Data, analytics, and AI are fast becoming game-changers for tapping into India’s eCommerce potential. Thanks to advanced AI models, brands can dive deep into buying behaviours across different regions, demographics, and socio-economic groups. This technology enables them to create marketing strategies that truly resonate with specific audiences, offering a whole new level of personalization. It’s all about understanding what various groups want and delivering it in a way that feels personal and relevant to them. What’s more, AI models can help brands figure out just how effective the different touchpoints in the buyer’s journey really are. Having reliable attribution is important because it tells them where to invest their marketing dollars for the best results.

There are, of course, many challenges. While digital payments are definitely improving, there are still people who just don’t fully trust them yet. And when it comes to logistics and infrastructure, things can get a bit tricky in smaller cities and rural areas. Another major challenge is effectively using AI and analytics. Data is often in silos and without integrated, standardized, and real-time data, it is hard to rely on it for decision making. Businesses will have to come up with creative solutions to navigate these hurdles.

Thanks to tech advancements and growing consumer confidence, the opportunities in this market are huge. Companies that put in the effort to truly understand the landscape, use data insights, and build targeted, local strategies will be well-positioned to capitalize on this expanding potential.

Authored By Prem Bhatia, Co-Founder and CEO, of Graas.