A Tale of Cautious Optimism
Consumer sentiment heading into the 2026 festive period reflects a complex picture. While there's a strong desire to celebrate, many households are approaching their budgets with caution. Recent surveys show that while 77% of consumers plan to increase
their festive budgets, this is a slight dip from 83% last year. This suggests a more measured approach to spending. Interestingly, the segment of high-ticket spenders, those willing to spend over ₹50,000, has actually grown by two percentage points. This indicates a split in the market: while some are tightening their belts, a confident group is ready to splurge. This cautious optimism is also visible in Tier-2 cities, where consumers are outpacing their Tier-1 counterparts in mid-budget spending, showing a broadening base of festive consumption across the country.
The Expanding Festive Basket
Traditionally, festive shopping has been dominated by apparel and footwear. While these remain staple purchases with 50% of shoppers planning to buy them, the modern festive basket is expanding. Categories like jewellery (40%) and even groceries and daily essentials (37%) are seeing strong purchase intent. This shift suggests that families are thinking more broadly about their festive needs, blending celebratory purchases with practical ones. However, rising costs are a significant factor. Inflation in specific categories is notable, with prices for precious metals like gold and silver rising sharply. Similarly, major appliance makers have announced price hikes of 5-8% on items like TVs and air conditioners, which are set to take effect just as the shopping season peaks. This makes strategic shopping more important than ever.
Shopping Gets Smarter with AI
Technology is playing a greater role in how Indians shop for the festive season. A remarkable four in five shoppers are now looking to AI-powered assistants to help guide their purchases. This isn't just about finding the best deals; it's about a smarter shopping journey. Consumers are using AI for everything from smart search suggestions (89%) to virtual product try-ons (81%). Interestingly, millennials are leading this trend, showing more enthusiasm for AI-based recommendations than their Gen Z counterparts. This digital shift means that brand discovery is no longer just about active searching. Consumers are noticing festive content on idle TV screens and browsing on their phones simultaneously, creating an 'always-on' shopping environment.
Planning Your Festive Budget
With rising costs for everything from sweets to electronics, creating a dedicated festive budget is crucial. Start by listing all expected expenses: gifts, travel, home decoration, special meals, and social gatherings. Assign a realistic amount to each category. Track your spending diligently using an app or a simple notebook to ensure you stay within your limits. Look for early-bird deals and compare prices online, as many retailers offer promotions well before Diwali. With many planning their shopping within the month leading up to the festivals, starting early can provide a significant advantage. For big-ticket items like appliances, buying before post-Diwali price hikes take full effect could lead to savings. Remember that brand trust is becoming as important as discounts for many shoppers, so factor in quality and reliability alongside price when making decisions.
