Urban households in India are set to embrace e-commerce like never before this festive season, with a new LocalCircles report predicting a sharp rise in online shopping. The findings suggest that recent GST rate changes have helped boost consumer confidence just ahead of the spending rush.The study, ‘How Urban Indian Households Will Spend During Festive Season 2025’, expects a 115% increase in households that plan to majorly shop online.Still, traditional markets remain important. According to the survey, 37% of urban families expect to spend Rs 20,000 or more during the season, a steep climb from 26% last year. Overall festive spending in 2025 is projected at Rs 2.19 lakh crore.“With the government announcing GST reforms leading to reduction in prices of white goods and consumer electronics like air-conditioners, refrigerators, washing machines and televisions just ahead of the festive season, an increasing number of urban Indian households are likely to take to e-commerce and online platforms as their preferred channel for festival spending,” the report was cited by PTI.Respondents highlighted convenience, product variety, better prices, and hassle-free returns and refunds as the biggest draws for shopping online.The survey collected over 200,000 responses from more than 44,000 households across 319 urban districts. It found that physical stores still handle most sales, but online channels are expanding the fastest.“When comparing the survey results this year with those in 2024, there is considerable shift in how household consumers are likely to execute their festive shopping. For instance, as against 70% who indicated plans to visit the mall, retail stores and local markets for festive shopping in 2024, the new survey shows that 56% of those surveyed are planning to do so while 28% are planning to shop online,” it said.In 2024, only 13% had planned to shop online, underlining the scale of the shift—more than 115% growth in digital-first shoppers.Among those going online this year, 44% are expected to spend on smartphones and electronics, while a similar share will put money into home renovation. About 29% are eyeing white goods and appliances, 60% plan to buy gourmet foods, groceries, and festive essentials, and nearly half will shop for fashion and beauty.LocalCircles founder Sachin Taparia told PTI, “The consumer insights for 2025 point to it being a unique festive season.”He added, “With the consumer set to get more value on white goods, consumer electronics as well as foods and groceries due to lower GST rates, households spending online are looking for platforms that offer value prices also reflecting new and lower GST rate, ease of returns and exchange as well as trust and consumer protection.”
