Festive Discounts, Weak Demand? Shoppers Hold Back On Big Purchases

India's festive shopping season has got off to a slow start this year, with online sales falling despite the usual rush of discounts and festive offers. The first four days of e-commerce sales generated an estimated Rs 29,800 crore to Rs 30,900 crore, down 7-10 per cent from Rs 33,200 crore in the same period last year, according to data from e-commerce consultancy Datum Intelligence.

The slowdown comes as higher smartphone and laptop prices make consumers more cautious about big-ticket purchases. The absence of last year's GST cut-led demand boost has also weighed on sales.

As per the study, consumers are becoming more selective about what they buy and how much they spend. Sohom Banerjee, an AI governance and economic expert and author, told NDTV that the slow start points to a shift towards more deliberate consumption rather than a broad retreat from festive spending.

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"There is an important economic distinction between the ability to spend and the willingness to spend," Banerjee said. Some households may find expensive products harder to afford, while others may simply not see enough value in upgrading their existing devices, he added.

Why Expensive Purchases Taking A Hit

Electronics have traditionally been a major draw during online festive sales. But higher component and memory costs have pushed up prices, making shoppers think twice before replacing smartphones and laptops.

When an existing phone still works well, consumers may prefer to keep it for another year rather than pay more for incremental improvements. Better cameras, faster processors and other upgrades may no longer be enough to justify the expense.

Banerjee said festive discounts cannot always overcome this hesitation. A price cut may look attractive on paper, but the final price still has to fit a household's budget and expectations. This also means that offering easy instalments may not be enough to revive demand. Financing can help consumers manage cash flow, but it cannot solve the problem if they do not believe a product is worth buying at its current price.

Are Indians Spending Less This Festive Season?

The early sales figures do not necessarily mean that all categories are struggling. Fashion, beauty and other lower-priced products have helped sustain order volumes, even as expensive electronics weigh on the overall value of sales.

Consumers may still be buying clothes, gifts and household essentials while postponing a costly phone or laptop upgrade. In other words, festive spending could be shifting between categories rather than disappearing altogether.

Financial confidence, however, remains a concern. A CVoter survey found that 53.6 per cent of respondents felt their household's financial condition had worsened over the past year. Only 11.6 per cent said it had improved.

The findings suggest that many families are approaching the festive season with tighter budgets, even if they still want to celebrate.

Banerjee cautioned against treating Indian consumers as one uniform group. Wealthier households may continue to buy premium products, while budget-conscious consumers delay replacements or choose cheaper models. Strong demand at the top end, therefore, does not necessarily mean that spending power has improved across the wider market.

The coming weeks will be crucial for retailers. Festive purchases could pick up as shoppers approach Dhanteras and Diwali, but the early numbers suggest that discounts alone may not be enough. Consumers appear willing to spend, provided the purchase justifies the price.