Urban households choosing ecommerce for festive buying may increase 115%

A growing share of urban Indian families is expected to turn to ecommerce and digital platforms as their main avenue for festive purchases this year, according to a LocalCircles report, which also suggests that recent GST rate adjustments are likely to lift consumer sentiment.

 

The study projects a 115 per cent increase in the number of households primarily shopping online.

 

However, the report notes that offline retail will continue to hold strong appeal for many consumers. It highlights that 37 per cent of urban households intend to spend ₹20,000 or more during the festive period, up significantly from 26 per cent in 2024.

   

Overall, festive spending in 2025 is expected to reach ₹2.19 trillion, the report estimates.

 

The report noted that with the government rolling out GST reforms that have lowered prices of white goods and consumer electronics such as air conditioners, refrigerators, washing machines, and televisions ahead of the festive season, more urban households are expected to choose e-commerce and online platforms as their preferred mode of festive shopping.

 

Urban households cite convenience, a wider product range, better value for money, and hassle-free return and refund policies as the main factors driving their preference for online shopping, according to the study.

 

Festive spending trends

 

The 2025 survey, based on more than 200,000 responses from over 44,000 households across 319 districts, suggests that urban India is gearing up for a robust festive season, marked by higher spending and increased dependence on digital platforms.

 

The report points out that brick-and-mortar stores and traditional markets still account for the majority of purchases, though online shopping is rapidly emerging as the fastest-growing channel.

 

The report also highlighted a marked change in festive shopping patterns when compared with 2024.

 

Last year, 70 per cent of households said they intended to visit malls, retail outlets, and local markets for their purchases. In contrast, the latest survey shows that this number has dropped to 56 per cent, while 28 per cent of respondents now say they plan to shop online. By contrast, in 2024 just 13 per cent of respondents had expressed an intention to shop online during the festive season.

 

Spending plans

 

In terms of categories expected to attract significant festive spending, the survey found that 44 per cent of online shoppers plan to purchase smartphones and consumer electronics, with an equally large share directing their budgets toward home renovation.

 

Around 29 per cent are likely to buy white goods and household appliances, while nearly 60 per cent intend to spend on gourmet foods, groceries, and festive essentials.

 

Additionally, close to half of those shopping through ecommerce platforms are expected to spend on fashion and beauty products, the report noted.