20 October 2025, Mumbai
Diwali 2025 marks a crucial shift in India’s shopping culture as consumers now move seamlessly between online research and in-store purchases, a trend known as ROBO (Research Online, Buy Offline).
Unlike the simple growth seen last year, the 2025 festival season is defined by a change in how purchases are made. The key word is phygital, which marries the convenience of digital technology with the tangible experience of a physical space.
Indian consumers are now sophisticated, jumping between online and offline touchpoints to get the best of both worlds. A recent national survey highlights, the percentage of families planning to make their primary festive purchases online has doubled, rising from 13 per cent in 2024 to 28 per cent in 2025 - a 115 per cent rise. This dramatic increase in digital-first shoppers is driven by greater convenience, better prices (helped by recent GST rate cuts on electronics), and increased trust in e-commerce portals. Although most Indians still buy in stores for traditional ceremonies like Dhanteras and Diwali, online shopping is now unequivocally the fastest-growing channel.
Leading this e-commerce revolution is Generation Z (mid-teens to late-20s). As the first generation of mobile natives, their purchasing habits are inherently screen-based.
Gen Z is highly price-conscious, using mobile phones to check comparison sites and waiting for major sales. Their decision-making is exhaustive; they dig deep into YouTube product reviews, Instagram polls, and peer recommendations before committing. By the time they add an item to their cart (or walk into a store to collect it), they’ve tested every alternative.
They also prioritize authenticity and sustainability, preferring brands that align with their values.
This year, over 80 per cent of festive consumers (many of whom are Gen Z) are social media followers or online influencers who find purchase inspiration on social platforms. This means the consumer journey is starting on a screen long before the actual transaction.
India's 2025 holiday shopping demonstrates a larger truth: the line separating online and offline commerce is dissolving. Consumers demand the convenience, access to information, and promotions of the digital world, along with the tangible confidence and social interaction of physical stores.
Retailers who understand this are winning. Those who provide a seamless screen-to-store experience are capturing the new generation’s wallet share, while those who rely exclusively on traditional or all-digital methods risk losing out.
The ‘phygital; dance is now visible everywhere: consumers are scanning QR codes on shelves, trying on jewelry using Augmented Reality (AR) apps, checking out with their phones, or buying online and picking up curbside. While Gen Z is driving the transformation, other generations are quickly adopting these new conveniences. India's 2025 festive season is characterized by integration and change, proving that the future of retail is neither purely digital nor physical, but overwhelmingly phygital, where technology enhances the festive shopping experience.