The festive season, usually a time to splurge, is telling a different story this year. A smaller number of card transactions and weaker smartphone sales are hinting at consumers tightening their purse strings amid mounting pressure on household budgets.
Early data from Redseer estimated that India’s online festive sales clocked $7-8 Bn in gross merchandise value (GMV) during the first leg, from October 8 to 18. Nearly 100 Mn shoppers placed more than 350 Mn orders, with consumption running at around three times the everyday rate.
However, the data also pointed to a more cautious spending environment. According to Datum Intelligence, a market intelligence and consumer data analytics company, the online festive sales amounted to ₹29,800-₹30,900 Cr this year, down 7-10% from ₹33,200 Cr during the corresponding four-day period last year. Card spending, too, declined 12-15% YoY.
The broader consumer picture was also subdued. LocalCircles’ ‘Mood for the Consumer 2026’ survey estimated that urban households would spend ₹1.97 Lakh Cr on festive discretionary purchases this year, down 6% from ₹2.10 Lakh Cr in 2025. The survey received more than 67,000 responses from urban consumers across 307 districts.
The trends pointed to a central challenge for retailers: consumers continued to browse and buy, but rising expenses, uncertainty over earnings and jobs, and less compelling discounts made them more cautious about committing to expensive purchases.
Shoppers Tune In But Spending Remains Muted
Flipkart’s ‘Big Billion Days’ sale, which opened on October 8 and closed on October 19, recorded 6.3 Mn concurrent users in a minute during its opening hour.
Listed Meesho’s ‘Mega Blockbuster Sale’, which went live on October 9 and wrapped up on October 18, also reported a 75% YoY rise in day-one orders and 60% growth in transacting customers.
Over at Amazon, the ecommerce major said that its nearly two-week long ‘Great Indian Festival’ sale (stretching between October 8 and October 20) saw the number of products ordered during the first twenty four hours more than double YoY.
Redseer’s assessment also highlighted the expanding reach of online festive shopping beyond major cities. Tier II and smaller towns accounted for around two-thirds of shoppers during the first leg, while the number of first-time shoppers from these regions doubled in 2026.
Gen Z made up more than 35-40% of festive shoppers, with demand across gaming devices, creator cameras,wearables, sports footwear, grooming and beauty.
Around 60% of Flipkart’s festive demand came from non-metro customers, while more than 72% of Amazon’s visits came from outside the top nine metros. Meesho also reported strong growth in orders through its Meesho Mall offering.
However, traffic, visitors and orders measured different aspects of shopping activity. They did not, by themselves, establish how much consumers spent or whether the average purchase value increased.
Datum’s card payment data offered another view. On October 9, the first day Amazon and Flipkart opened their sales to all shoppers, card transactions stood at 83.5 Lakh against 82 Lakh on the corresponding day last year. Yet, the value of those payments fell 18% to ₹6,594 Cr from ₹8,067 Cr.
The figures point to lower spending despite a similar number of card transactions. Meesho’s order growth, much of which came through cash on delivery, also illustrated why order counts alone could not establish the value of sales.
The year-on-year comparison, however, comes with an important caveat. The major online sales in 2025 coincided with the September 22 GST rate cuts, which reduced prices on several consumer products. The opening of this year’s sales did not have a comparable tax-led trigger.
Fashion And Select Categories Find Buyers
Category-level disclosures showed that consumers spent on fashion and certain premium products, even as electronics faced pressure.
A Bank of America research note (dated October 20) found that Myntra’s daily active users rose around 40% during the first six days of its ‘Big Fashion Festival’, which ran between October 8 and October 25, compared with its September average.
Myntra’s monthly active users stood at around 93 Mn (up 8% YoY), while Nykaa Fashion’s monthly active users grew 24% to around 17 Mn.
Flipkart also reported a 42% YoY rise in beauty sales during the first hour of its sale, while its lifestyle category grew 12.5%, according to the company’s disclosures. Meesho also reported demand for festive décor and other lower-priced products.
Redseer’s category-level estimates showed that large and small appliances recorded more than 20 times their average daily GMV during the festive period. Electronics ran over seven times the everyday level, while mobiles exceeded five times. These multiple compared festive daily GMV with the January – August 2026 daily average, rather than with the previous year.
Amazon’s disclosures show that some premium categories performed well. Televisions measuring 55 inches and above accounted for 65% of its TV sales, while premium Android smartphones’ sales rose 70% YoY. The company also reported that high-end home theatre sold at 100X its regular day levels, while front-load washing machines with capacities of 9 kg and above sold at 80X.
Fashion and beauty also recorded strong festive demand. Redseer estimated that fashion grew 20-25% and accounted for nearly a fifth of festive GMV, making it the second largest category.
However, these numbers reflected performance in specific categories and do not establish a broad recovery in big ticket demand.
LocalCircles’ survey provided another indication of household priorities. Among respondents who planned festive discretionary spending, 72% intended to buy clothing, footwear or accessories. Home appliances and furniture and travel and holidays were each cited by 45%. Only 22% planned to buy mobile phones, consumer electronics or gadgets.
The findings suggested that expensive electronics were not a priority for most households planning festive purchases.
Household Budget Under Pressure
LocalCircles estimated that urban households would spend around ₹20,000 on festive discretionary purchases in 2026. While 57% of respondents said they intended to spend, 31% planned no discretionary festive purchases.
The survey’s findings on how households planned to fund their purchases were equally telling. Around 83% of households intending to spend expected to use savings to some extent. About 34% expected savings to cover at least a quarter of their festive expenditure, including 16% who said they would fund the entire amount from savings.
This came as retail inflation stood at 5.54% in September and food inflation at 7.74%, according to figures cited by LocalCircles. Higher everyday expenses left households with less room for purchases.
LocalCircles founder Sachin Taparia said, “Household earnings are not rising, and inflation continues to rise.” He also pointed to concerns over AI and its potential effect on white-collar jobs, along with a lack of attractive deals on online commerce platforms.
Discounts may also have done less to persuade shoppers to buy. The Economic Times reported that festive discounts were 35-40% lower than last year. The report also cited price increases of 30-40% for premium electronics in recent months.
Smartphone Sales Exposed The Limits of Online Traffic
Smartphones provided one of the clearest indications of the pressure on high-value purchases. Counterpoint Research’s early assessment found that smartphone sales fell 16% YoY during the first three days of Amazon’s and Flipkart’s festive sales, despite strong traffic on both platforms.
The research firm had initially forecast a 12% decline in festive smartphone volumes. Its early assessment suggested that the fall could be steeper, although the figures available in the supporting documents did not establish the final full-season outcome.
Counterpoint’s report identified higher device prices and fewer direct discounts as factors weighing on demand. Brands relied more on no-cost EMIs, bank cashback and exchange offers to make upgrades affordable without cutting listed prices sharply.
Premium Samsung models, including the Galaxy S25 Ultra and the S25 FE, found buyers, but their performance did not prevent the overall decline in smartphone sales during the opening days. Entry-level devices faced greater pressure because even discounted models were generally more expensive than a year ago.
“We had projected a 12% decline in smartphone sales, but based on the first wave of festive sales, we would not be surprised if the decline deepens to around 16%. Platforms have seen strong traffic, but conversions have been weak. Premium smartphones, however, continue to sell well, which could support revenue despite pressure on volumes,” Tarun Pathak, Research Director at Counterpoint Research.
Counterpoint also noted that the opening days fell during Pitru Pakha, when some consumers in North India traditionally defer purchases. Navratri began on October 11, after the initial sales period, leaving the full festive effect on offline demand to pay out later.
With the online sales campaigns now over, the early figures underline the difficulty retailers faced in converting strong digital engagement into higher-value purchases.
Overall, with household budgets under pressure, rising product prices and fewer compelling discounts, shoppers appear to be prioritising essentials and selective purchases over expensive upgrades this festive season.
Edited By Shishir Parasher
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