Apparel remains the top festive purchase, but tighter budgets, high precious-metal prices and greater reliance on savings are reshaping demand across India.
Indian households are heading into the festive season with a sharper eye on value, even as clothing, footwear and home purchases remain firmly on the list. A survey by LocalCircles found that 72% of urban consumers planning to spend during the festival period expect to buy apparel, shoes or accessories, keeping fashion at the top of the chart. Home appliances and furniture are next, while travel and holidays are drawing an equal share of interest, showing that many families are treating the season as more than a shopping occasion.
The same survey suggests that festive buying will be more selective this year. Just 57% of urban households said they plan to make discretionary purchases, while nearly a third said they do not expect to spend on such items at all. Among those who do plan to shop, many are keeping budgets tight, with a sizable group expecting to spend less than Rs 10,000 and only a smaller share planning outlays above Rs 1 lakh. LocalCircles estimated average discretionary spending at nearly Rs 20,000 per urban household, but total festive expenditure is projected to slip to Rs 1.97 lakh crore, down from Rs 2.10 lakh crore a year earlier.
That caution is showing up in what people are avoiding as well as what they are buying. Interest in jewellery is relatively weak, which may reflect the strain of elevated gold and silver prices, while interest in cars and two-wheelers remains limited. By contrast, gourmet food, gifts, mobile phones, consumer electronics and home renovation are all drawing meaningful demand, though not at the scale of clothing and footwear. The Economic Times has also reported that shoppers are increasingly chasing value and utility, with online buying continuing to gain ground, especially in tier-two and tier-three cities.
Consumers are also expected to fund much of the season from their own savings. LocalCircles said 83% of households planning festive purchases expect to use savings at least partly, with 16% saying they will rely on savings entirely. That comes as inflation remains elevated and the Reserve Bank of India raised its repo rate by 25 basis points to 5.50% on October 7, its first increase in more than three and a half years. Even so, the broader retail outlook remains upbeat: the Confederation of All India Traders says festive trade could top Rs 7 lakh crore this year, while online sales are also projected to rise strongly, helped by a longer shopping season, early promotions and growing demand for fashion, beauty and everyday essentials.
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