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Festive Spends 2025: Here’s a mood check from urban households

As India heads into the September–November festive season, consumer confidence is riding high. A LocalCircles survey across 319 districts reveals that urban households are preparing to loosen their purse strings, driven by GST reforms, good monsoons, and rising optimism about incomes. The total spending is estimated at ₹2.19 lakh crore ($24.8 billion), an 18% jump from 2024. Here’s a closer look at how families are planning their festive spends this year.

Festive Spends 2025: Here’s a mood check from urban households

Festive Spends 2025: Here’s a mood check from urban households

CNBCTV18·author

Published Sep 08, 2025 | 6:16 AM GMT-04

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Six in Ten Households to Spend Over ₹5,000 | The survey shows that 60% of urban households will spend more than ₹5,000 beyond regular expenses this festive season. Notably, 37% plan to spend over ₹20,000, up from 26% in 2024. (Image: Canva)

Big Boost to Retail Stores, but Online Shopping Doubles | While 56% of households still prefer malls, retail shops, and local markets, online shopping has seen a sharp rise. 28% of households will shop online, marking a 115% jump compared to 2024. (Image: Canva)

Value, Convenience, and Selection Drive Online Purchases | Among online shoppers, 68% are lured by better deals, 63% by convenience, and another 63% by wider product ranges. Faster delivery, easy returns, and brand reputation also weigh in as deciding factors. (Image: Canva)

Smartphones and Home Renovation Lead Big-Ticket Buys | When it comes to major spends, 44% of households are eyeing smartphones and consumer electronics, while an equal 44% plan to invest in home renovation. White goods like refrigerators and air conditioners follow at 29%. (Image: Canva)

Festive Essentials: Food, Fashion, and Lights | Beyond big purchases, 61% of households will spend on gourmet foods and groceries, 57% on festive décor and lights, and 47% on fashion, clothing, and beauty products. (Image: Canva)

Trust Emerges as Key Factor in Online Shopping | For 89% of online buyers, trust in product quality, fair pricing, and return policies is a top priority. Consumers continue to be selective about platforms, with Amazon and Flipkart seen as more reliable for returns compared to others. (Image: Canva)

Digital Payments Dominate Festive Transactions | A massive 91% of households shopping online will use digital payments such as UPI, cards, and wallets. Cash still accounts for 45%, but its share is gradually shrinking.

Convenience and Safety Drive Digital Choices | Among digital adopters, 79% prefer it for convenience, while 63% trust it for safety. Cashback, rewards, and EMI options further encourage households to go cashless this festive season. (Image: Canva)

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