Electronics to see spending at 44%, gifting trend to grow this festive season: Report
Digital commerce is firmly rooted in festive shopping in India.
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This year, the festive sentiment is positive and celebratory. With 82% of consumers report that the festive period is a very important time for household spending, while 73% say they are very excited about the festive season. Festivals that increase spending are primarily Diwali, followed by Raksha Bandhan, Navratri/Durga Puja/Dussehra, Ganesh Chaturthi, and Christmas.
Spending behaviour is considerably high — 87% of respondents reported they will spend significantly more over the festive season (nearly one in three respondents indicated they would spend over 50% more than normal). This propensity to spend could be attributed to more than just excess disposable income. Cultural traditions prompt us to engage in the holiday season, retailers are more accessible, credit is easier to obtain, and aspirational lifestyles are made easier and spread more rapidly through influencer marketing.
Clicks, Carts, and the Rise of Hybrid Shopping Journeys
Digital commerce is firmly rooted in festive shopping in India. With 80% of consumers plan to shop online this season, which solidifies the continued dominance of platforms. However, that does not diminish the ability of offline channels to fill a role—51% of consumers shop at retail shops and 49% at local neighbourhood stores.
One particularly interesting trend is the emergence of hybrid buyers. One in four shoppers (25%) will utilise both online and offline points of contact as part of their festive shopping experience—these omnichannel consumers are simply looking for convenience, variety, and experience, which positions them as key consumers to any brand with a multichannel clicks and bricks approach.
What’s Filling India’s Festive Carts in 2025
The festive wish list this year shows the intersection of tradition and modernity. It is no surprise that clothing and fashion top the list (64%), since new clothes continue to represent new beginnings. Sweets and snacks come second at 52%, which signals India's rich culinary traditions around festivals.
That said, lifestyle categories are equally strong—electronics, gadgets, and home decor tied at 40%, suggesting that consumers will look to continue living their modern lives while indulging in tradition. Most importantly, 35% of consumers plan on spending 25–50% more and 29% about 50% more than they would spend in a regular month. This demand for spending highlights a balance between cultural rituals and aspirational consumption.
Gifting Goes Experiential and Purpose-Led
Gifting is an area that is markedly changing. Material items are also common, but more than 51% of consumers are choosing to gift experiences, rather than products. This signals a bigger shift to gifting that is meaningful, memorable, and value-based.
At the festive gifting side, 29% are personal care and customised gifts, indicating a purposeful and considered purchase. More than 42% of consumers now prefer to gift local and handmade gifts, indicating an investment in conscious consumerism and support of the local community. Gifting is no longer transactional-it has now become indicative of changing lifestyles, eco-awareness, and emotional significance.
Advertising and Storytelling: Balancing Value with Emotion
Festive advertising plays a crucial role in shaping consumer decisions, but Indian audiences demand both value and emotional depth. Discounts, product bundles, and offers remain the most effective tools (cited by 78%), while 55% said cultural storytelling and emotionally engaging campaigns resonate deeply. Cause-based campaigns also find relevance, with 40% of consumers saying they appreciate brands that stand for a cause.
However, the major issue for marketers is differentiation. Only 19.5% of consumers reported that they recalled a memorable campaign from last year's Diwali festival; so while discounts can get their attention, creating sustained campaigns and projects with emotional value is evidently much more challenging. The "human factor" (grounded in the influence of culture, family, and shared experiences) is clearly emerging as the ultimate differentiator in brand storytelling.
Sustainability and Cultural Relevance as Festive Must-Haves
Eco-conscious culture has entered the mainstream, with 78% of consumers making eco-friendly choices over the holiday season, including not using plastic decorations (67%), using eco-packaging (54%), and using wrap made from eco-friendly materials (35%).
At the same time, cultural authenticity remains critical. Around 66% of respondents prefer brands that run campaigns or offers aligned with the festive season, reinforcing the importance of cultural resonance. For brands, this means that being green and culturally rooted is no longer optional, but a festive default that builds long-term trust and loyalty.
Commenting on the findings, Praveen Nijhara, CEO, Hansa Research said, "Festivals in India are not only cultural celebrations but powerful catalysts for economic growth. The analysis underlines that consumers may be aware of some of the financial realities, but enthusiasm for celebrating is significantly high considering the recent revisions in the GST rates. Categories like electronics, fashion, and home décor will be big winners; and consumers will be taking digital-first discovery journeys that are reshaping their considerations and purchase journeys. For brands, there is a real opportunity to create a connection with consumers in a way that balances emotional with value-led offers to attract consumers during this high-stakes time of year.”
Hansa Research Festive Insights 2025 gives clear messages: India’s festive season is still an emotionally charged motivator for spending. It shows consumers are celebrating with optimism and healthy household budgets — and they are shopping more consciously, combining digital conveniences with offline experiences, and looking for the gift or brand that fits their values.
