115% rise likely in online festive shopping among urban households: Report

An increasing number of urban Indian households are likely to opt for e-commerce and online platforms as their preferred channel for festival spending this year, according to a report by LocalCircles that also sees the recent GST rate rationalisation boosting positive sentiments for shoppers.

The study titled ‘How urban Indian households will spend during festive season 2025’ expects a 115 per cent jump in urban households that are likely to primarily shop online.

That said, a large section of urban Indian households show continued preference to buy offline during festive season, according to the report. It also pointed out that 37 per cent of urban Indian households plan to spend Rs 20,000 or more this festive season, up sharply from 26 per cent in 2024.

As per the report, total festive season 2025 spending is estimated at Rs 2.19 lakh crore.

“With the government announcing GST reforms leading to reduction in prices of white goods and consumer electronics like air-conditioners, refrigerators, washing machines and televisions just ahead of the festive season, an increasing number of urban Indian households are likely to take to e-commerce and online platforms as their preferred channel for festival spending,” it said.

The key reasons identified by household consumers for this preference for online mode includes convenience, wide selection, value for money, and friendly return and refund policies.

The 2025 study, which gathered over 2,00,000 responses from over 44,000 urban household consumers located across 319 districts of India indicated that urban India is set for a strong festive season with higher spending and greater reliance on digital platforms.

While physical stores and markets continue to account for bulk of the purchases, online shopping is emerging as the fastest-growing channel, it said.

“When comparing the survey results this year with those in 2024, there is considerable shift in how household consumers are likely to execute their festive shopping. For instance, as against 70 per cent who indicated plans to visit the mall, retail stores and local markets for festive shopping in 2024, the new survey shows that 56 per cent of those surveyed are planning to do so while 28 per cent are planning to shop online,” the report said.

In comparison, last year only 13 per cent of respondents had indicated plans to shop online during the festive season, thereby indicating a growth of over 115 per cent in those doing majority of their festival shopping online.

As far as the categories where sizeable festival spending is likely, 44 per cent of those shopping online are likely to spend on smartphones and consumer electronics and a similar chunk are likely to spend on home renovation.

About 29 per cent of those shopping online are also likely to spend on white goods and appliances, while about 60 per cent of households shopping online are likely to spend on gourmet foods and groceries as well as festival supplies.

Nearly 50 per cent of e-commerce shoppers are also likely to spend on fashion and beauty, it said.

LocalCircles Founder Sachin Taparia said, “The consumer insights for 2025 point to it being a unique festive season. With the consumer set to get more value on white goods, consumer electronics as well as foods and groceries due to lower GST rates, households spending online are looking for platforms that offer value prices also reflecting new and lower GST rate, ease of returns and exchange as well as trust and consumer protection.”