Festive shopping set to become more AI-led, last-minute as consumer budgets rise: Report

The report noted that 62 per cent of festive shoppers begin their shopping journey within the final month before festivals, with last-minute shoppers, those purchasing one week to less than a week before a festival, rising by 5 percentage points from last year. This is expected to push brands towards more timely and personalised campaigns as the festive shopping window compresses.

Consumer spending plans are also pointing to a stronger festive season. Only 4 per cent of shoppers plan to spend less, while budgets are either flat or rising for 96 per cent of consumers. About 77 per cent said they have increased their festive shopping budget compared with 2025, while three in five shoppers plan to spend more than Rs 10,000.

The report, based on an on-device consumer study of 1,110 consumers conducted between August 7 and 11, 2026, also found that trust could play a greater role than discounts in converting shoppers. Brand trust was the top purchase factor for 27 per cent of respondents, ahead of discounts and festive offers at 22 per cent.

AI is emerging as another important part of the purchase journey. Four in five consumers said they want an AI shopping assistant for the festive season, while 89 per cent showed interest in smart search suggestions, 81 per cent in virtual product try-ons and 75 per cent in AI-based recommendations.

The report also highlighted the growing importance of Tier 2 markets, with 35 per cent of shoppers there planning to spend Rs 10,000-25,000, compared with 33 per cent in Tier 1 cities.

Fashion remains the leading festive category at 51 per cent, followed by jewellery at 40 per cent and grocery and daily essentials at 37 per cent. Meanwhile, 73 per cent of festive shoppers ultimately purchase online, underlining the growing role of digital discovery and commerce. (ANI)