Diwali 2025 sees record online turnout as 93% shop digitally

New Delhi: As the festive season unfolds across the country, Criteo has released its latest insights into online retail sales, traffic patterns, and consumer behaviour. 

The report highlights that 93% of Indian consumers are shopping online this Diwali, with a marked rise in early purchase activity and a 14% year-on-year increase in average online sales.

The study indicates that shoppers began searching for festive deals nearly a month before Diwali, underscoring a more deliberate and research-driven approach to purchases. Criteo’s analysis of last year’s Diwali shopping behaviour revealed an average gap of 15 days between product discovery and purchase, with some buyers taking up to six weeks to complete transactions.

During the fortnight leading up to Diwali, online retail sales in 2025 recorded steady momentum, peaking at 51% growth in sales and 36% in traffic two weeks before the festival. Activity then tapered off on Diwali day itself.

Discounts remain the strongest incentive for festive shoppers, with 59% citing them as the primary reason to try new online stores. Free shipping (46%) and exclusive products (45%) followed closely, while fast delivery (45%), unique discounts (43%), and early access to offers (43%) also influenced buying decisions. The findings suggest that value, convenience, and trust continue to shape how Indian consumers shop during the festive period.

Among categories, fashion led festive sales with a 71% spike on the peak day and a 30% average uplift in the fortnight before Diwali. Home & Garden followed, with lighting products and candles contributing to up to threefold sales growth, while Health & Beauty saw a 63% increase in the peak week driven by gifting kits, skincare, and hairstyling products.

Medhavi Singh, Country Head, Criteo India, said, “Diwali reaffirms India’s rise as a dynamic digital retail market, where consumers shop smarter and earlier, balancing value with experience. Criteo’s insights show that Diwali is now a key retail moment driving growth across categories like fashion, home décor, and beauty. To harness this momentum, businesses must adopt a full-funnel, cross channel commerce media strategy that unites performance and experience for a seamless, personalised festive journey.”

The report also observed a rise in advertising competition, with average CPCs increasing by 45% and CPMs by 26% in the two weeks preceding Diwali. Brands that invested earlier in campaigns saw stronger visibility and better conversion rates, particularly in fashion and apparel, where early-month sales outpaced traffic growth.