India’s festive season is unlike any other. For millions of families, it’s the time when shopping lists grow longer, wallets open wider, and every purchase, whether big or small, feels like a celebration. From Diwali diyas to Christmas trees, Raksha Bandhan gifts to New Year gadgets, festivals aren’t just cultural milestones; they’re powerful economic drivers.
But in the past few years, festive commerce has transformed into more than just discounts and shopping frenzies. Thanks to the rise of digital-first lifestyles, new payment methods, and changing aspirations, India’s shoppers are rewriting the festive playbook. To keep up, brands are turning to consumer insights and deep understandings of how people buy, click, and pay. These insights go beyond numbers; they reveal the motivations, behaviors, and choices shaping the way India shops during its most vibrant season.
So, what does festive commerce in 2025 look like? Let’s explore it through the lens of consumer insights.
Buying: The Rise of the Hybrid Shopper
Walk into a mall in Mumbai this Diwali, and you’ll notice something interesting. Shoppers don’t just browse racks anymore. They whip out their phones, scan QR codes, compare prices online, and sometimes even order home delivery while standing inside the store. This is the phygital journey, a blend of physical and digital shopping that’s now mainstream.
According to PwC India’s insights, 45% of Indian consumers now prefer hybrid shopping, seamlessly blending online research with offline purchases. Why? Because they value both convenience and trust. Online platforms provide variety and price comparisons, while physical stores offer instant gratification and the assurance of quality.
Another big shift is the rise of Tier 2 and Tier 3 cities. The so-called “Bharat” shoppers are no longer quiet participants in festive commerce; they’re driving it. Affordable smartphones, cheaper data, and regional content have empowered them to shop online like never before. Brands that once focused on metro audiences now design festive campaigns in vernacular languages, collaborate with regional influencers, and roll out hyperlocal deals to tap this massive consumer base.
And while discounts still matter, consumer insights reveal that value now comes packaged differently. Bundled festive hampers, loyalty-driven rewards, and exclusive early access offers are winning hearts over flat price cuts. For today’s consumer, experience is as important as savings.
Clicking: Social Feeds are the New Shop Windows
Think about how you discovered your last festive purchase. Was it a billboard? A newspaper ad? Or was it an Instagram reel, a WhatsApp forward, or maybe even a YouTube unboxing video?
In recent years, festive discovery has shifted from store shelves to social feeds. A Meta-commissioned Global Wellness Institute (GWI) study revealed that nearly 80% of Indian shoppers discover new products through social media, with most of these discoveries happening on mobile-first, social-first platforms. This shows just how central digital feeds have become in shaping festive shopping journeys.
Influencer commerce is extenuating the festive purchase behavior. A regional content creator in Jaipur reviewing Diwali outfits has more sway over local shoppers than a glossy magazine spread.
Live commerce, where influencers or brands stream real-time product demos, creates urgency and trust, turning browsing into buying within minutes.
Interactive ads on platforms like Instagram and Snapchat let shoppers “try” jewelry, sunglasses, or even festive makeup virtually before purchasing.
Festive commerce has also become more gamified. Shopping apps roll out spin-the-wheel discounts, festive quizzes, or AR treasure hunts, blending entertainment with commerce. These aren’t gimmicks; they’re deliberate strategies shaped by consumer insights into how digital-native shoppers engage.
In short, clicks are no longer passive. They’re active, social, and immersive.
Paying: From Wallets to BNPL, The Payments Revolution
Once upon a time, festive shopping meant cash withdrawals and debit card swipes. Fast forward to today, and consumer insights paint a very different picture. Payments are now as digital and dynamic as the shopping experience itself.
- UPI (Unified Payments Interface) continues to dominate India’s digital payments landscape, crossing 20 billion transactions in August 2025. Daily volumes surpassed 645million transactions, while monthly transaction values exceeded ₹24 trillion. Its convenience and zero-cost structure make it the default mode of choice for teenagers buying headphones and grandparents sending e-gift cards.
- BNPL (Buy Now, Pay Later) is emerging as the payment hero for younger generations. In 2025, India’s BNPL market is projected to touch US$30.88 billion, driven by millennials and Gen Z. Nearly 40% of BNPL users are Gen Z, who rely on it for big-ticket purchases like smartphones, appliances, and travel packages without straining their bank accounts.
- Embedded finance is also reshaping shopping journeys. With financial services built directly into apps, a consumer buying festive outfits can instantly access credit, compare EMI options, or unlock cashback rewards, all without leaving the app.
Interestingly, consumer insights show that payments aren’t just functional, they’re emotional. Cashback notifications, festive wallet top-ups, and exclusive co-branded offers add a sense of reward to spending. For many shoppers, the thrill of festive commerce isn’t just about what they buy but also how they pay.
Why One Size Doesn’t Fit All
If there’s one lesson consumer insights highlight, it’s this: no single approach works for everyone.
- UPI may dominate day-to-day payments, but BNPL fuels big-ticket festive splurges.
- Embedded finance empowers digital-first users, while COD still holds relevance in certain regions.
- Urban shoppers may expect AI-driven personalization, while Tier 2 and 3 audiences respond better to vernacular campaigns and hyperlocal offers.
This diversity means brands can’t rely on blanket solutions. Success comes from designing multi-layered festive strategies that adapt to varied consumer journeys online, offline, or somewhere in between.
At Markelytics, this is where we step in. By combining market research, behavioral insights, and cultural intelligence, we help brands decode consumer diversity and turn it into a festive opportunity.
Looking Ahead: The Future of Festive Commerce
Festive commerce in India has always been vibrant, but the pace of change in recent years has been remarkable. Shopping is no longer about one-off transactions; it’s about journeys shaped by consumer insights. Buyers move across platforms, seek personalized experiences, and pay in ways that match their lifestyle.
The future will only deepen this trend. Expect AI-powered virtual shopping assistants, metaverse-based festive launches, and even more seamless payment innovations. But one thing will remain constant: the importance of listening to the consumer.
How Markelytics Helps Brands Win Festive Commerce
At Markelytics, we specialize in turning consumer insights into actionable strategies. With our deep expertise in market research, data analytics, and shopper behavior studies, we help brands:
- Decode what drives festive buying decisions across metros and Tier 2/3 cities.
- Identify the most effective digital discovery channels, from social to influencer-led commerce.
- Understand evolving payment preferences to optimize checkout experiences.
- Localize festive campaigns with regional and cultural intelligence.
So, as festive commerce continues to evolve in 2025 and beyond, our research and insights can give you the clarity to make the right moves, ensuring your brand not only rides the festive wave but also builds long-term consumer loyalty.
Ready to unlock consumer insights for your festive strategy?