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Vishal Khairnar
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Indian Festive Spending to Surge in 2025, Fashion Emerges as Second-Largest Category
India’s festive season in 2025 is set for a major boom, with fashion and apparel emerging as one of the biggest winners, according to the Hansa Research Festive Insights report.
The study shows that 72% of urban consumers plan to increase their festive spending this year, with almost one in three aiming to spend over 50% more than usual. Among categories expected to dominate, fashion and apparel account for 39% of consumer intent, making it the second-largest segment after electronics and home appliances.
Hybrid Shopping Takes Centre Stage
Consumer behaviour continues to shift towards hybrid shopping. While 80% of respondents plan to shop online, over half also intend to visit retail outlets, with 25% preferring a mix of both channels. For apparel retailers, this opens new opportunities to engage customers across touchpoints.
Fashion as Gifting and Self-Expression
Gifting remains integral to festive purchases, with:
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51% choosing experiences
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42% preferring local or handmade items
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29% opting for personal care and customised products
Discounts and promotions remain the strongest driver, cited by 78% of consumers, while 55% prefer campaigns rooted in culture and emotion. Interestingly, only 19.5% could recall a memorable campaign from last Diwali, highlighting the need for stronger storytelling.
Sustainability & Cultural Resonance Lead the Way
Sustainability is no longer niche: 78% of consumers prefer eco-friendly fashion options, and 66% favour brands aligned with festive traditions. This signals a clear direction for apparel labels to balance value, cultural relevance, and environmental responsibility.
“The festive season represents a critical window for fashion and apparel players,” said Praveen Nijhara, CEO of Hansa Research.
“Brands that successfully combine value-led promotions with culturally resonant messaging stand to gain most in this high-stakes period.”
As India gears up for its most vibrant season, fashion stands at the forefront of consumer intent, blending tradition, sustainability, and modern retail innovation.
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