Flip the Script on Festive Shopping: Tier-1 Cities Embrace Digital Gifts, E-commerce Jumps 40%

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During the 2025 Diwali festival, e-commerce orders in India's Tier-1 cities surged by 40%, fueled by a boom in digital gifting. Consumers embraced convenient online shopping for gifts, home decor, and festive essentials, reflecting strong growth in premium categories and enhanced delivery efficiencies.

The 2025 Diwali season has marked a remarkable milestone for India’s e-commerce sector, with Tier-1 cities witnessing a 40% surge in online orders. A significant driver behind this spike is the growing trend of digital gifting, as consumers increasingly opt for smart and hassle-free gift purchases through e-commerce platforms. This festive season, digital gifting has expanded across categories such as luxury home décor, personalised gifts, sweets, and electronics, highlighting evolving shopper preferences towards convenience and quality.

Key Highlights:

Tier-1 cities led e-commerce growth with a 40% increase in festive season orders, outpacing metros on rising disposable incomes and digital penetration.
Digital gifting emerged as a prominent category, comprising gift cards, home decor, sweets, cosmetics, and jewellery, supporting the demand for thoughtful, curated presents.
Enhanced logistics and faster last-mile delivery ensured timely arrival of gifts amid peak festive demand, contributing to positive customer experiences.
Quick commerce platforms saw rising traction as last-minute shoppers relied on 10–30 minute deliveries for essential Diwali items.
Prepaid digital payments grew alongside traditional cash-on-delivery options, signaling higher consumer trust in digital transactions in urban hubs.
Overall, the festival shopping spree saw a 24% rise in total e-commerce orders across India, with Tier-1 and Tier-2 cities jointly accounting for over half of all orders.
Categories like home appliances, jewellery, sweets, and fashion accessories outperformed, reflecting a premiumization of festive purchases in urban markets.
Retailers and brands ramped up targeted marketing and customised offerings to attract discerning Diwali shoppers in Tier-1 cities.

Looking ahead, analysts expect digital gifting and e-commerce adoption in India's urban centers to sustain their upward trajectory, boosted by continued investments in fulfilment infrastructure and innovative customer engagement strategies. This festive season’s performance underlines how technology-driven convenience is reshaping buying behaviour, making e-commerce a pivotal channel for India's retail growth.

Sources: Economic Times, The Hindu Business Line, Fortune India, Unicommerce, Times of India, Business World Retail.

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