The New Festive Mindset: Value Over Volume
This year, the defining feature of the Indian shopper is a sharp focus on value. Persistent inflation, which stood at 5.54% in September, and higher household expenses are forcing families to be more deliberate with their festive budgets. Many urban households
are planning to spend less overall this year, with surveys indicating an average spend of around ₹20,000 and a 6% drop in total estimated festive expenditure compared to 2025. This doesn't mean an end to festive cheer, but rather a change in how it's expressed. Consumers are adopting a 'smarter' shopping approach, sticking to their budgets while seeking the best possible deals. Instead of foregoing traditional purchases like gold, for instance, many are opting for smaller, lightweight items or digital gold. This behaviour, termed the 'compressed purchase', sees shoppers reducing product sizes rather than skipping rituals entirely.
How Online Platforms Are Adapting
E-commerce giants are experiencing this cautious sentiment in nuanced ways. While overall online festive sales are projected to grow by 25-29%, this growth is being driven by a higher number of orders, not necessarily a bigger average spend per order. Shoppers are buying more frequently but in smaller amounts. There's a noticeable slowdown in high-value categories like smartphones, whose share of the festive sales pie has dropped below 30% this year, down from 35% previously. This is partly due to higher prices for new models and fewer deep discounts on older ones. In response, platforms are seeing strong engagement from non-metro cities, which are driving a significant portion of demand. To capture the value-conscious buyer, e-commerce sites are heavily promoting affordability options like EMIs and 'Buy Now, Pay Later' schemes, with one in three customers on platforms like Amazon opting for such credit facilities.
The Reality for Brick-and-Mortar Stores
For brick-and-mortar markets, the challenge is direct and tangible. While they still command the lion's share of festive commerce—around 85% of sales value in 2025—they are on the front lines of the consumer's hunt for value. Foot traffic is now more purposeful; shoppers come armed with price comparisons from online apps and a clear idea of what they want. Local retailers are finding success by focusing on experiences that online platforms cannot replicate: the touch-and-feel of a product, personalised service, and the trust built on community relationships. Some are leaning into tradition, observing that consumers are increasingly moving away from expensive, commercialised public events and back toward intimate, community-funded celebrations, which can benefit local vendors. To compete with online discounts, many physical stores are also running their own promotions and leveraging their ability to provide immediate product access without shipping delays.
A Blurring of Lines Between Online and Offline
The most significant evolution this festive season is how both retail formats are borrowing from each other's playbooks. Brick-and-mortar stores are enhancing their digital presence, using social media for promotions and offering local delivery. Simultaneously, online-first brands and platforms are recognising the power of a physical presence. They are opening pop-up stores in malls and high-traffic areas, allowing customers to experience products firsthand before buying online. This hybrid strategy acknowledges the modern customer's journey, which rarely stays in one channel. Consumers browse online, visit a store to check the product, and may go back online to find the best final price. Retailers who can provide a seamless experience across both worlds are best positioned to win over the careful festive shopper of 2026. The festive season itself is also getting longer, with both online and offline retailers starting promotions weeks in advance to capture consumer interest early.
