Festive Sales See Shoppers Log In, But Hold Back On Big-Ticket Purchases

The festive season is seeing fewer shoppers and a more cautious approach to spending in India. Early data suggests online sales amounted to $7-8 billion during the first leg of the holiday period, with over 100 million shoppers placing more than 350 million orders. While consumption was three times the usual rate, consumer spending on big-ticket items remains muted due to rising expenses, job and earnings uncertainty, and less compelling discounts.

Online festive sales reached ₹29,800-₹30,900 crore, down 7-10% compared to the same period last year. Card spending declined 12-15% year-on-year, and local consumer surveys indicated that urban households would spend ₹1.97 lakh crore on festive discretionary purchases, a 6% decrease from 2025. Despite the overall decline, specific categories such as fashion, premium electronics, and beauty products saw growth.

Major e-commerce platforms like Amazon, Flipkart, and Meesho reported significant traffic and order numbers, with non-metro customers driving the bulk of purchases for platforms like Flipkart and Amazon. However, the actual spending value may not have increased proportionately, as card spending, while similar to the previous year, showed a decline in value. Fashion and beauty categories recorded strong festive demand, with fashion accounting for nearly a fifth of festive GMV, making it the second-largest category.