Indian consumers are embracing digital platforms as their primary destination for festive shopping, with a new report highlighting a dramatic rise in online-first behavior and the use of AI-powered tools. According to the Festive Marketing Trends Report 2025 released by InMobi and Glance, 64% of consumers now prefer to shop fully online during the festive season, while 83% research products online before making purchase decisions.
Digital as the New Festive Mall
The findings underline a deep shift in shopping behavior during India’s most important retail period. Once driven by store visits and physical browsing, the festive market is increasingly led by e-commerce platforms, digital touchpoints, and mobile-first interactions. Categories such as electronics, fashion, personal care, and home appliances saw the strongest adoption of online journeys.
Industry strategists point out that this shift reflects more than convenience. Digital platforms offer the benefit of wider assortments, instant deals, and personalized recommendations that offline retail cannot match at scale. The rise of mobile wallets, buy-now-pay-later schemes, and instant cashback has further accelerated online adoption across metros and tier-2 cities alike.
The AI Push: Personalization at Scale
One of the report’s most striking findings is the 79% increase in AI-powered product recommendations compared to last year’s festive season. Consumers are increasingly guided by AI-driven suggestions on e-commerce platforms, social commerce apps, and even content discovery platforms like Glance.
These recommendation engines are shaping purchase behavior across age groups, particularly among younger consumers who rely on personalized curation over generic product listings. Analysts note that the combination of AI and retail media networks has created a new layer of influence, where festive discovery is powered as much by algorithms as by traditional advertising.
Research Before Purchase
The report also highlights that 83% of festive shoppers research online before buying. This includes browsing reviews, checking influencer recommendations, comparing across platforms, and engaging with brand content on social media. For marketers, this stage of discovery has become critical, as consumers now make up their minds long before they hit “add to cart.”
With shorter attention spans and multiple platforms competing for visibility, marketers are under pressure to ensure that their content surfaces at the right time. Experts suggest that festive season strategies must integrate search, social, and retail media to influence consumer journeys effectively.
The Role of Retail Media
Retail media has emerged as a key driver in festive marketing, offering brands the ability to target consumers at the point of purchase. Platforms like Flipkart, Amazon, and Reliance Digital are expanding AI-based advertising solutions that enable sharper targeting and measurable conversions. With festive spending expected to reach record levels in 2025, retail media is set to capture an increasing share of advertising budgets.
The InMobi-Glance report notes that more than 40% of festive consumers were exposed to retail media placements while browsing. These ads, integrated into shopping journeys, are proving more effective than standalone campaigns, providing closed-loop attribution and real-time insights.
Shoppers Beyond Metros
While metros continue to dominate festive e-commerce, tier-2 and tier-3 cities are showing faster adoption. The report reveals that smaller towns are now key contributors to online growth, driven by improved logistics, affordable smartphones, and digital literacy. In fact, for categories like apparel and home décor, rural and semi-urban markets are now outpacing metros in terms of growth.
Marketers see this as both an opportunity and a challenge. Regional preferences, language diversity, and cultural nuance require hyper-local strategies. AI tools are playing an increasingly important role in tailoring creative assets and messaging for these varied cohorts.
Balancing Human Touch and Automation
While AI recommendations and retail media are transforming festive shopping, experts caution that consumer trust remains fragile. Over-reliance on algorithmic suggestions without transparency or cultural sensitivity can alienate customers. Industry analysts argue that the most successful festive campaigns will be those that balance AI-driven personalization with authentic storytelling, festive emotion, and cultural resonance.
Outlook for Brands
The festive season remains India’s most critical retail opportunity, accounting for a disproportionate share of annual sales in many categories. With digital adoption at an all-time high, marketers are expected to increase investment in AI tools, retail media networks, and content-driven commerce.
As consumers grow comfortable with AI-led discovery and decision-making, the pressure on brands will be to innovate responsibly while ensuring accuracy and transparency. For now, the Festive Marketing Trends Report 2025 makes one fact clear: the future of India’s festive shopping is digital-first, AI-powered, and increasingly consumer-driven.