An increasing number of urban Indian households are expected to opt for e-commerce and online platforms as their preferred channel for festive shopping this year, according to a report by community platform LocalCircles. The study also suggested that the recent rationalisation of GST rates is likely to boost consumer sentiment ahead of the season.
The LocalCircles survey, titled How urban Indian households will spend during festive season 2025, projects a 115% rise in the number of households that will primarily shop online. Despite this growth, a significant portion of households continues to show preference for offline shopping. The report found that 37% of urban households plan to spend US $ 240 or more this festive season, compared with 26% in 2024.
The report estimates total festive spending at US $ 26.3 billion in 2025. It noted that Government reforms lowering GST rates are expected to encourage more consumers to turn to online channels.
Consumers cited convenience, variety, value for money, and flexible return and refund policies as the main drivers behind their shift towards e-commerce.
The 2025 survey, based on over 200,000 responses from more than 44,000 households across 319 districts, indicated that urban India is heading towards a strong festive season, with higher spending and greater reliance on digital platforms. While physical stores remain dominant, online shopping is emerging as the fastest-growing channel.
The report highlighted that 56% of households plan to visit malls, retail outlets and local markets for festive shopping this year, compared with 70% in 2024. Meanwhile, 28% plan to shop online, up from just 13% last year. In terms of categories, nearly 50% of e-commerce shoppers are likely to spend on fashion and beauty.
LocalCircles founder Sachin Taparia said the consumer insights pointed to 2025 being a distinctive festive season. He added that with lower GST rates, households shopping online are seeking platforms that combine competitive pricing with ease of returns, exchanges, and strong consumer protection.
