Urban India set to spend Rs 2.19 lakh crore this festive season; online shopping surges

Households spending over Rs 20,000 are driving an 18% jump in urban festival spending, with online shopping set to dominate electronics, home renovation, fashion, and groceries.

Bengaluru: Total urban festival spending is projected to reach Rs 2.19 lakh crore in 2025, marking an 18% increase over last year, according to a study by community social media platform LocalCircles.

The jump is driven primarily by households spending over Rs 20,000 during the festive season, whose share is expected to rise from 26% in 2024 to 37% in 2025.

The study also highlighted a 115% surge in households likely to shop primarily online. Sachin Taparia, Founder, Chairman and CEO of LocalCircles, shared the report during a webinar on the 2025 Festive E-Commerce Forecast: Platforms, Trust & Consumer Choice, organised by InGovern Research Services on Wednesday.

Taparia said that amid ongoing discussions around tariff changes, GST slabs, and value-driven purchases, households shopping online are seeking platforms that offer not just competitive prices, but also trust and consumer protection.

The study found that about 44% of online shoppers are likely to spend on smartphones and consumer electronics, while a similar 44% are expected to invest in home renovation. Around 29% are likely to purchase white goods and appliances, and approximately 60% are expected to spend on gourmet foods, groceries, and festival supplies. About 50% of e-commerce shoppers are also projected to spend on fashion and beauty products.

Speaking at the webinar, Badri Narayanan Gopalakrishnan, Founder Director of Infinite Sum Modeling and Fellow at NITI Aayog, said Meesho dominates tier-3 markets, with 75% of its products priced under Rs 500.

"While Amazon caters more to the premium market, Flipkart is strong in local brands," he said. "When it comes to access and affordability, Meesho leads, and Amazon leads in terms of user experience, product range, and quality."

Meanwhile, Meesho reported an overwhelming response during the opening weekend of its Mega Blockbuster Sale 2025, with 24 crore customers visiting the platform in just three days. "We witnessed about 29,000 orders placed every minute across categories such as Fashion, Home & Kitchen, Personal Care & Beauty, and Electronic Accessories, with prepaid orders rising 54% year-on-year, reflecting the surge in digital payments," the platform said.