The festive lights are on and the spirit of celebration is in the air, but a closer look at shopping trends reveals a change in the wind. This year, Indian households are navigating the festive season with a more deliberate and cautious mindset.
A Season of Restraint
While
the festive season traditionally brings a surge in spending, recent surveys indicate a more measured approach for 2026. One survey from LocalCircles, which polled over 67,000 urban households, projects a 6% dip in overall discretionary spending compared to last year, from ₹2.10 lakh crore down to ₹1.97 lakh crore. This suggests that while consumers are participating in the festivities, they are doing so with tighter budgets. A significant portion of households, around 31%, have indicated they do not plan any discretionary spending at all, reflecting a wider sentiment of financial caution. This marks a notable shift from 2025, which saw a spending boost partly aided by tax rate cuts that are absent this year.
The Smart Shopper's Priority List
This caution doesn't mean carts are empty; it means they are being filled more selectively. Fashion remains a top priority, with clothing, footwear, and accessories leading the shopping lists for a majority of households. According to a YouGov report, 47% of consumers identified fashion as their biggest festive expense, followed by groceries, food, and sweets. However, big-ticket items are seeing a pullback. For instance, while gold remains culturally significant, shoppers are adapting. Purchase volumes in major cities like Delhi and Mumbai saw a decline, with consumers opting for smaller gold coins over elaborate jewellery sets or exchanging old gold to finance new buys. Similarly, major electronics are under pressure, with smartphone sales volumes expected to dip.
The 'How' Behind the Buy
The defining characteristic of this year's festive shopper is a sharp focus on value. Consumers are not just buying less, they are buying smarter. According to YouGov, 49% of shoppers cite product quality as a key factor in their brand choice, while 42% point to price and discounts. This has led to creative and budget-conscious behaviours. For example, searches for 'outfit restyling' have surged, with many looking to create fresh looks from existing wardrobes using accessories rather than buying entirely new ensembles. There's also a growing preference for celebrating closer to home, with neighbourhood gatherings and housing society events gaining favour over expensive large-scale venues. Furthermore, many households are dipping into their savings to fund their festive purchases, signalling a commitment to celebrating without overextending their finances.
Underlying Economic Realities
This shift towards cautious and selective spending is not happening in a vacuum. It is deeply connected to the broader economic climate. Rising household expenses on essentials have been a key factor, with a Reserve Bank of India survey noting that over 90% of urban households have seen their spending on necessary items increase. This leaves less room for non-essential splurging. Concerns about personal financial situations and a desire to save more are also shaping behaviour. With household debt on the rise, many families are prioritising financial security over extravagant festive spending, choosing to save any extra income rather than buy premium goods. This environment has created a consumer who is still eager to celebrate tradition but is increasingly deliberate about every rupee spent.
