Diwali 2025 retail sales jumped 30 percent, led by electronics and apparel. Hybrid shopping habits, festive campaigns, and rising demand in Tier-2 cities fueled the surge. Retailers embraced omnichannel strategies and quick commerce to meet consumer expectations. The festive momentum is expected to continue through year-end celebrations.
India’s retail sector is celebrating a robust Diwali 2025, with sales jumping 30 percent across major categories. Electronics and apparel have emerged as the top-performing segments, driven by hybrid shopping habits, festive discounts, and rising consumer confidence in Tier-1 and Tier-2 cities.
Key Highlights From The Retail Boom
• Electronics, including smartphones, smart TVs, and kitchen appliances, saw a 35–40 percent surge in sales across offline and online platforms
• Apparel and ethnic wear recorded a 28 percent increase, with premium brands and sustainable fashion gaining traction among urban buyers
• Retailers adopted omnichannel strategies, blending digital discovery with in-store experiences to capture festive demand
• Quick commerce platforms reported a spike in last-minute gifting orders, especially in metros like Mumbai, Bengaluru, and Delhi
• Tier-2 cities contributed significantly to the growth, with increased footfall in malls and local markets
• Festive campaigns, influencer-led promotions, and flexible payment options helped brands attract younger consumers
Strategic Insights
Retailers are capitalizing on the “phygital” trend—where consumers browse online and purchase offline or vice versa. The integration of digital tools with traditional retail formats has enhanced customer engagement and conversion rates.
Cultural Context
Diwali remains the most significant shopping season in India, with purchases tied to gifting, home upgrades, and personal indulgence. This year’s surge reflects a return to pre-pandemic enthusiasm, supported by stable incomes and aspirational spending.
Market Outlook
With Diwali setting the tone, retailers expect continued momentum through Christmas and New Year. Electronics, fashion, and home décor are likely to remain strong performers, while experiential gifting and wellness products are emerging growth areas.
Sources: Economic Times Retail, Indian Retailer, Mint