Urban Indians Set to Spend More This Festive Season, But on Fewer Things: Saarva Study
A new Saarva study reveals urban Indians are ready to spend more this festive season, but with a sharp focus on fewer categories and specific mindsets.
Urban Indian consumers are gearing up for a high-spending festive season, but they are doing so with unprecedented precision. According to the Festive Outlook Study 2026 by consumer insights firm Saarva, while the intent to spend is high, shoppers are narrowing their focus to a limited number of categories rather than spreading their wealth across the board.
A survey of over 1,000 urban consumers conducted in September 2026 indicates that 77% of respondents expect to spend more than they do during a regular month, while a mere 2% anticipate spending less. However, this increased expenditure is highly concentrated; on average, shoppers plan to increase their spending in just 1.3 categories.
The Festive Basket: Apparel and Electronics Lead the Way
The festive shopping list is currently anchored by two major pillars that are nearly equal in popularity. The study highlights a clear divide in where the money is going:
- Apparel and Jewellery: Chosen by 48% of consumers.
- Electronics and Home: Selected by 46% of consumers.
- Travel and Dining: A smaller segment, accounting for 24% of interest.
The drivers behind these purchases vary significantly depending on whether the consumer is motivated by price or ease of use.
Discounts vs. Convenience: Two Different Worlds
While 49% of consumers still cite discounts as their primary purchase trigger, a significant 38% claim that convenience is more important than finding the lowest price. This distinction creates two very different types of shoppers:
The Discount-Led Buyer:
These shoppers lean heavily toward apparel (60%). They are highly flexible, moving between online and offline channels (42%), and are almost entirely digital, with 88% opting for digital payment methods.
The Convenience-Led Buyer:
This group gravitates toward electronics (52%) and prefers the ease of malls and branded stores (35%). Interestingly, one in five of these shoppers still prefers to pay with cash.
No Single Channel Dominates the Market
The festive shopping landscape remains fragmented, with no single platform owning the season. The distribution of shopping channels shows a diverse mix of habits:
- Hybrid Shopping: 29% of consumers use a mix of online and offline channels.
- E-commerce and Malls: Both segments hold 25% each.
- Local Retail: 21% of shoppers stick to local stores.
Malls, in particular, are becoming hubs for ease rather than savings, as 53% of mall shoppers are driven by convenience, while only 26% are motivated by discounts.
Understanding the Four Festive Mindsets
The Saarva study identifies four distinct psychological profiles that dictate how money moves during the holidays:
- Price Comparers (52%): The largest group, focused on finding the best value.
- Early Planners (36%): The most committed group, with 86% intending to spend more.
- Budget Stretchers (15%): Those who tend to overshoot their initial financial limits.
- Impulse Buyers (13%): Late-season shoppers who buy on a whim.
Demographics also play a role in spending intent. Salaried consumers show a stronger inclination to spend (82%) compared to business owners (65%). Furthermore, while digital payments are the norm for 82% of people, only 1% plan to use EMI or Buy Now Pay Later (BNPL) options, suggesting that the festive spend is largely driven by immediate liquidity rather than credit.
"This festive season, consumers are spending with intent, not abandon. They will spend more, but on fewer things, and how they shop tells us far more than who they are. A planner and an impulse buyer can live in the same household and behave like two different markets. Brands that reach planners early and make buying effortless will do better than those relying on discounts alone," said Ankur Nagar, Founder & Principal Consultant, Saarva.