Qcom sees 120% YoY surge during peak festive periods: Report

The report notes rising demand from smaller cities, with 55% of festive online orders from Tier II, and highlights Gen Z’s projected $250B spending power by 2025.

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India’s festive retail trends highlight major shifts in consumer behaviour, led by a 120% year-on-year surge in quick commerce during peak periods and Rs. 8,500-10,000 crore in automotive deliveries on Dhanteras alone.

The LS Digital’s latest report on India’s festive retail revolution finds that festive sentiment continues to fuel large-scale spending across categories. It noted that quick commerce has become a dominant channel, with 78% of search conversations around festive essentials focused on speed and convenience. The category saw growth driven by last-minute gifting, puja items, décor and sweets.

The report says India’s festive season has become an advanced retail ecosystem shaped by digital acceleration and competition centered on speed.

One key trend identified is the rise of what the report calls the ‘Millisecond Economy,’ where consumer patience has sharply declined. Delivery timelines have improved by 15% year-on-year, supported by real-time data tools, instant checkout processes and automated last-mile routing.

The report also points to growing demand from smaller cities, with 55% of festive online orders coming from Tier II and beyond. Gen Z, projected to contribute $250 billion in spending power by 2025, is influencing festive behaviour through mobile-first shopping, digital payments and expectations for rapid fulfilment.

About 25% of urban shoppers now follow blended online-offline paths, reinforcing the need for omnichannel coordination.

Speaking about the findings, Prasad Shejale, Founder & CEO, LS Digital, said, “This report underscores that India’s festive retail is now an engine of Digital Business Transformation. Brands can no longer operate in channel silos. The winners will adopt a holistic view, using unified data intelligence to deliver cultural authenticity and seamless experiences across every consumer touchpoint, especially as they expand into Bharat.”

Social discourse demonstrates how cultural celebrations synchronise major spending decisions. Consumers explicitly time high-value purchases to coincide with auspicious festival dates, while emotional undercurrents around traditions like Bhai Dooj directly influence product discovery and fulfilment expectations.

The study also notes a shift in how retailers measure performance, with rising interest in terms like ‘omnichannel retailing,’ ‘KPI formula,’ and ‘sales key performance indicators.’ Companies are adopting cross-channel attribution models, real-time fulfilment dashboards and customer lifetime value metrics.

The report says India’s Kirana sector is changing, with about 200,000 stores impacted or closed while others digitise inventory, accept UPI payments and join hyperlocal delivery networks.

The report concludes, festive retail in India is increasingly defined by delivery speed, cultural timing and digital-first shopping journeys.

LS Digital Quick Commerce festive retail trends retail ecosystem