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India’s urban households are set to embrace online shopping like never before this festive season, with a staggering 115% surge expected in those choosing e-commerce platforms as their primary channel for purchases, according to a new report by community platform LocalCircles. The report, titled “How Urban Indian Households Will Spend During Festive Season 2025”, reveals a significant shift in consumer behaviour as digital convenience, better pricing, and GST-driven affordability reshape festive spending habits.
Rs 2.19 Lakh Crore Festive Spending Estimated
Total festive season spending in 2025 is expected to touch Rs 2.19 lakh crore, buoyed by both rising consumer confidence and tax reforms. The study, based on over 200,000 responses from more than 44,000 urban household consumers across 319 districts, indicates that urban India is headed for its most digital-led festive season yet.
“The consumer insights for 2025 point to it being a unique festive season,” said Sachin Taparia, Founder of LocalCircles. “With reduced GST rates and value-driven platforms, online shopping is no longer just convenient—it’s financially smarter.”
GST Reforms Drive Spending on Big-Ticket Items
A key factor behind the digital shift is the recent GST rationalisation, which has lowered prices for key consumer durables like air conditioners, refrigerators, washing machines, and televisions—just in time for the festive buying spree.
The report found that 44% of online shoppers plan to splurge on smartphones and consumer electronics, while a similar number will invest in home renovations. Other popular categories include:
- White goods & appliances – 29%
- Gourmet foods, groceries & festival supplies – 60%
- Fashion & beauty products – nearly 50%
Offline Still Dominates, But Online Is Growing Fast
Despite the spike in online shopping, physical retail remains dominant. However, its lead is shrinking. In 2024, 70% of urban households said they would shop in malls and markets. That number has now dropped to 56%, while online-first shoppers have doubled from 13% to 28% in just a year.
Shoppers cite key reasons for choosing e-commerce, including:
- Ease of shopping and doorstep delivery
- Wide selection and better deals
- Transparent return and refund policies
- Discounts reflecting the new GST rates
Urban Households Planning to Spend More
The survey also found that 37% of urban households plan to spend Rs 20,000 or more this festive season—up from 26% in 2024—indicating an increase in disposable income and consumer confidence.
Experts believe this digital pivot could accelerate further if e-commerce platforms align their offerings with tax benefits and continue enhancing customer trust.
(Source: PTI)
