Indian retailers experience boom across channels this festive season

24 October 2025, Mumbai 

Indian retailers are experiencing a significant boom this festive season, with a palpable excitement across both online and offline channels. Brands across various categories are reporting a major surge in consumer demand, fueled by festive gifting, attractive offers, and updated GST rates.

The demand spike is widespread, with key players reporting substantial gains. D2C cosmetics brand Recode Studios saw sales jump nearly 35 per cent compared to last year, driven by festive-exclusive products, influencer collaborations, and in-person consumer events. Dheeraj Bansal, Co-founder noted, the season isn't just about sales, but about using beauty for self-expression, with customers favoring cruelty-free and skin-friendly options.

A brand specializing in ergonomic products, Frido expects to close the quarter with a 40 per cent growth over last year's festive sales, reporting a 28 per cent rise in traffic and an 18 per cent increase in conversions. Similarly, skincare brand Nat Habit observed a major shift in gifting, with about 60 per cent of consumers now choosing wellness-oriented and meaningful options like sustainable gifting kits and ritual boxes, moving away from purely convenience-based gifts.

Lotus Electronics saw exceptional success with its 'Lotus Deal Festival.' Gaurav Pahwa, Director highlighted that the combination of attractive offers and an enhanced shopping experience created a noticeable spike in engagement and sales. He also noted, omni-channel engagement has grown, with customers researching online but buying in-store for immediate service. Consumers are increasingly favoring premium, tech-savvy, and energy-efficient products.

Even B2B marketplaces like IndiaMART felt the festive lift two to three months before Diwali. Dinesh Gulati, COO reported nearly 8 lakh (800,000) inquiries and close to 1.6 lakh (160,000) calls to sellers across categories like apparel, home décor, and textiles.

Beyond the increase in spending, the festive season reflects a major shift in consumer behavior toward thoughtful, sustainable, and personal shopping:

Shoppers are gravitating toward conscious luxury. A lab-grown diamond brand, Solitario is leading this change, seeing rising demand for versatile pieces. Ricky Vasandani, Co-founder, stated, millennials are embracing jewelry to express individuality and values, viewing the season as a cultural shift where beauty, ethics, and inclusivity come together.

Shoppers are showing greater experimentation in makeup, favoring bold colors, long-lasting formulations, and multipurpose products suited for festival looks.

Across all sectors, customers are described as value-conscious but aspirational, prioritizing trust, quality, and long-term benefits in their purchases.

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