India’s festive retail shift as speed and instant delivery redefine shopping habits

New Delhi: LS Digital has released a new study on India’s festive retail patterns, outlining how quick commerce, shortening consumer patience and blended shopping journeys are influencing seasonal spending behaviour. 

The report is based on the company’s Quilt methodology, which draws on curated search activity, social conversations and machine-assisted discourse mapping.

According to the findings, festive sentiment continues to support high spending across categories, with cultural synchronisation remaining central to purchase decisions. The report cites automotive deliveries worth an estimated Rs 8,500–10,000 crore recorded on Dhanteras, indicating the continued importance of auspicious buying periods. LS Digital notes that India’s festive economy is evolving through ongoing digital adoption, shifting expectations, and competition centred on delivery speed.

One of the central shifts highlighted is the emergence of what the report describes as the “millisecond economy”, where consumer tolerance for delays has reduced further. Delivery speed has improved 15 per cent year-on-year, supported by developments in real-time analytics, instant checkout flows and automated last-mile systems that are designed to handle peak demand.

Quick commerce, the report states, has become a significant festive retail channel. Around 78 per cent of search conversations around festive essentials refer to convenience and fast delivery, and platforms have recorded 120 per cent growth during peak periods. 

The study also notes that last-minute requirements, such as gifting, puja materials, décor and sweets, have strengthened the role of instant delivery services.

Growth continues to come from outside major metros, with 55 per cent of festive online orders originating in Tier-2 and smaller cities. The influence of India’s Gen Z population, expected to hold $250 billion in spending power by 2025, is also reflected through mobile-led discovery, digital payments and preference for faster fulfilment. 

Meanwhile, LS Digital reports that 25% of urban consumers now use mixed online-offline journeys, making omnichannel coordination a baseline expectation for retailers.

Commenting on the findings, Prasad Shejale, Founder and CEO, LS Digital, said, “This report underscores that India’s festive retail is now an engine of Digital Business Transformation. Brands can no longer operate in channel silos. The winners will adopt a holistic view, using unified data intelligence to deliver cultural authenticity and seamless experiences across every consumer touchpoint, especially as they expand into Bharat.”

The report also points to what it calls a “KPI revolution”, with greater attention paid to areas such as omnichannel retailing, modern attribution models, real-time fulfilment metrics and customer lifetime value. It further notes shifts within the Kirana ecosystem, with an estimated 200,000 outlets affected or shut, while others modernise operations by digitising stock management, adopting UPI payments and working with hyperlocal delivery partners.