Over 70% of urban indians plan higher festive spending in 2025: Hansa Research

New Delhi: Hansa Research has released its analysis of festive season trends for 2025, highlighting how consumers are entering the period with optimism while balancing financial prudence. The insights reflect a shift in shopping behaviour, where cultural traditions intersect with modern lifestyles, digital discovery, and conscious consumerism.

According to the report, around 72% of urban Indians plan to increase their festive spending this year, even while remaining careful about finances. Electronics and home appliances are expected to attract the highest spending at 44%, followed by fashion and apparel at 39%, and home décor and furnishings at 28%. 

Digital channels are increasingly influential, with over 60% of consumers reporting that ads, influencers, and social commerce platforms have shaped their choices. Gifting remains a central feature of the season, with 68% indicating they plan to give more gifts than before, and there is a stronger interest in personalised or experiential presents. Growth in rural out-of-home advertising, up by 15–20%, has been partly attributed to early monsoon gains, which increased farmers’ incomes.

The festive mood is described as positive and celebratory. Hansa Research notes that 82% of consumers consider the festive period an important time for household spending, while 73% say they are excited about the season. Festivals such as Diwali, Raksha Bandhan, Navratri, Ganesh Chaturthi, and Christmas continue to drive increased expenditure. 

About 87% of respondents said they expect to spend significantly more over the festive period, with nearly a third indicating they may spend over 50% more than a typical month. Analysts attribute this trend to a combination of cultural traditions, easier access to credit, more convenient retail options, and the growing influence of aspirational lifestyles promoted by influencers.

Digital commerce remains central to festive shopping, with 80% of consumers planning to shop online this season. Yet offline channels continue to play an important role, as 51% of consumers said they will visit retail stores and 49% will shop at local neighbourhood outlets. A notable trend is the rise of hybrid shoppers, with one in four planning to use both online and offline touchpoints. These consumers value convenience, variety, and experience, illustrating the growing importance of multichannel strategies for brands and retailers.

Consumer preferences reveal a blend of tradition and modernity. Clothing and fashion top festive wishlists at 64%, while sweets and snacks follow at 52%, underscoring the ongoing significance of culinary traditions. Lifestyle categories such as electronics, gadgets, and home décor are also strong, each at 40%. The report highlights that 35% of consumers expect to spend 25–50% more than usual, and 29% anticipate spending about 50% more, demonstrating the interplay between cultural rituals and aspirational consumption.

Gifting has evolved beyond material items, with more than 51% of consumers choosing experiences over products. Personalised and customised gifts are favoured by 29%, while over 42% prefer local or handmade options. These patterns indicate a shift toward thoughtful, value-based, and environmentally conscious purchases.

Festive advertising continues to influence purchase decisions, though consumers are seeking both value and emotional resonance. Discounts, product bundles, and offers remain effective, cited by 78% of respondents, while 55% emphasised the importance of culturally rooted, emotionally engaging campaigns. Cause-driven initiatives also resonate, with 40% saying they appreciate brands that support a social cause. 

At the same time, differentiation remains challenging, with only 19.5% recalling a memorable campaign from last year’s Diwali. Hansa Research highlights that cultural and family connections, alongside shared experiences, are emerging as key differentiators in festive storytelling.

Sustainability and cultural relevance have become integral to the festive season. Around 78% of consumers report making eco-friendly choices, including avoiding plastic decorations (67%), using eco-packaging (54%), and selecting eco-friendly wraps (35%). Cultural authenticity is also important, with 66% preferring brands that align campaigns or offers with festival occasions.

Commenting on the findings, Praveen Nijhara, CEO of Hansa Research, said, “Festivals in India are not only cultural celebrations but powerful catalysts for economic growth. The analysis underlines that consumers may be aware of some of the financial realities, but enthusiasm for celebrating is significantly high considering the recent revisions in the GST rates. 

Categories like electronics, fashion, and home décor will be big winners; and consumers will be taking digital-first discovery journeys that are reshaping their considerations and purchase journeys. For brands, there is a real opportunity to create a connection with consumers in a way that balances emotional with value-led offers to attract consumers during this high-stakes time of year.”