55% consumers connect with cultural storytelling, 40% prefer purpose-led ads: Report

Around 72% of urban Indians intend to increase their festive spending this year, according to Hansa Research Festive Insights 2025. The study highlights optimism among shoppers despite signs of financial caution.

Advertising continues to influence decisions, though recall remains low. While 78% of shoppers cited discounts and product bundles as persuasive, only 19.5% recalled a memorable campaign from last year’s Diwali. Cultural storytelling resonated with 55% of respondents, and 40% said they valued cause-based campaigns.

Rural demand also showed an uptick. Out-of-home (OOH) advertising in rural markets grew 15-20%, supported by higher farm incomes due to early monsoons.

Electronics and home appliances are expected to see the highest spending at 44%, followed by fashion and apparel (39%), and home décor and furnishings (28%). Gifting remains central to festive consumption, with 68% of respondents saying they plan to give more gifts this year, particularly personalized and experiential ones.

Digital platforms continue to influence purchase decisions. Over 60% of consumers said online ads, influencers, and social commerce shaped their choices. At the same time, hybrid shopping is on the rise: 80% plan to shop online, while 51% will buy from retail outlets and 49% from local stores. One in four shoppers intends to combine online and offline touchpoints.

Festive purchases also reflect cultural continuity and modern aspirations. Clothing and fashion remain most popular (64%), followed by sweets and snacks (52%). Electronics, gadgets, and home décor each accounted for 40% of intended purchases. About 35% of consumers said they would spend 25-50% more than usual, while 29% planned to spend about 50% more.

Sustainability and cultural alignment are emerging as important drivers. Around 78% of respondents reported making eco-friendly choices, including avoiding plastic decorations (67%), opting for eco-packaging (54%), and using recycled wrapping (35%). Meanwhile, 66% said they preferred brands with campaigns rooted in festive traditions.

The findings suggest that while festive spending in India is buoyant, consumers are increasingly making conscious, hybrid, and culturally rooted choices.

Commenting on the findings, Praveen Nijhara, CEO, Hansa Research, said, "Festivals in India are not only cultural celebrations but powerful catalysts for economic growth. The analysis underlines that consumers may be aware of some of the financial realities, but enthusiasm for celebrating is significantly high, considering the recent revisions in the GST rates. Categories like electronics, fashion, and home décor will be big winners, and consumers will be taking digital-first discovery journeys that are reshaping their considerations and purchase journeys. For brands, there is a real opportunity to create a connection with consumers in a way that balances emotional with value-led offers to attract consumers during this high-stakes time of year.”