A Strategic Shift in Shopping Timelines
Indian households are increasingly front-loading their festive expenses, a noticeable shift from traditional last-minute shopping sprees. According to a Hansa Research report, a significant portion of consumers are starting their shopping well in advance.
The report highlights that 50% of consumers begin shopping two to four weeks before a festival, and another 11% start as early as one to two months prior. This trend suggests a move towards more deliberate and planned purchasing. This behaviour is not just about excitement; it's a calculated financial strategy. Faced with persistent inflation and the looming threat of further price increases, consumers are acting early to lock in current prices and avoid the notorious festive season surge that affects everything from flight tickets to home appliances.
The High Cost of Hitting the Skies
Travel, a cornerstone of festive celebrations for many families visiting their hometowns, is a major area of concern. Airfares on key domestic routes are already seeing sharp increases, with some prices more than doubling their usual rates. For example, fares on busy routes like Mumbai-Kolkata and Bengaluru-Kolkata have climbed significantly weeks before the peak Diwali travel period. This surge is attributed to a combination of factors, including rising Aviation Turbine Fuel (ATF) prices, which constitute a large part of an airline's operating costs, and a tighter domestic aviation capacity. With demand expected to peak, airlines are employing dynamic pricing, meaning fares will only continue to rise as travel dates approach. Consequently, savvy travellers are booking their tickets earlier than ever to avoid paying exorbitant last-minute prices.
Bracing for More Expensive Gadgets
The story is similar in the retail sector, particularly for consumer electronics and home appliances. Manufacturers have been signaling price hikes of 5% to 8% on items like air-conditioners, televisions, washing machines, and refrigerators, set to take effect from October. This will be the third round of price increases in 2026 for many companies, driven by soaring input costs for raw materials like copper, aluminium, and steel, as well as higher freight charges. While some companies believe existing inventory in the supply chain might soften the immediate blow for consumers, the upward price trajectory is clear. Knowing that these price revisions are coming, many households planning to upgrade their appliances are choosing to buy now rather than wait and pay more during the peak Diwali shopping days.
Inflation's Broader Festive Impact
Beyond big-ticket items, general inflation continues to stretch household budgets. The cost of essentials and festive treats is also on the rise. For instance, retail inflation remains a concern, with food inflation being particularly high. Even the price of sugar, a key ingredient for festive sweets, has seen a sharp increase over the past year, souring the budget for many. Extremely high inflation in precious metals like gold and silver is also forcing families to be more strategic about their traditional Dhanteras purchases. This widespread inflation means that every rupee saved by shopping early counts. The trend of advancing purchases is less about impulse and more about prudent financial management in an environment of rising costs across the board.
