Fashion and apparel are set to emerge as one of the key beneficiaries of festive spending in 2025, according to the latest Hansa Research Festive Insights report. The study revealed that 72% of urban consumers intend to increase their festive spending this year, with nearly one in three planning to spend more than 50% above their usual outlay.
Within the categories expected to dominate purchases, fashion and apparel account for 39% of consumer intent, second only to electronics and home appliances. The findings highlight a significant opportunity for clothing and accessories brands as consumers prepare to refresh wardrobes and gift fashion during the season.
Hybrid shopping continues to shape consumer behaviour. While 80% of respondents indicated plans to shop online, more than half also expect to buy from retail outlets, with 25% opting for a mix of digital and offline channels. This blended approach is expected to create new avenues for apparel retailers to engage customers.
Beyond fashion, gifting remains central to festive shopping, with 51% of consumers preferring experiences, 29% opting for personal care and customised products, and 42% choosing local or handmade items. Discounts and offers continue to be the most powerful purchase trigger, cited by 78% of respondents. At the same time, 55% said culturally rooted and emotionally engaging campaigns resonate more strongly, though only 19.5% recalled a memorable campaign from the previous Diwali season.
Sustainability is also shaping purchase decisions. The report found that 78% of consumers now prefer eco-friendly options, while 66% favour brands that align with festive traditions, creating added impetus for apparel brands to strike a balance between value, cultural relevance and environmental responsibility.
Praveen Nijhara, chief executive officer of Hansa Research, said the festive season represents a critical window for fashion and apparel players. He noted that brands which successfully combine value-led promotions with culturally resonant messaging stand to gain most in this high-stakes period.
