From Dussehra To Diwali: Why Indians Are Spending Big On Electronics And Home Appliances

By Kalpesh Ramoliya

India’s festive season has long served as a key driver of consumer spending. Spanning celebrations like Dussehra, Navratri, and Diwali, this period consistently fuels a surge in demand for consumer durables, including electronics, home appliances, and automobiles. But the manner in which Indians are purchasing such products is transforming at a fast pace because of policy changes, digitalization, and changing consumer preferences.

GST Reforms and the Affordability Factor

The government’s GST rationalisation has been a big consumption pattern during the festival season. By streamlining tax slabs and reducing rates on consumer durables, products have become more affordable and accessible, significantly enhancing consumers’ purchasing power.

This has consequently translated into boosting demand for electronics, air conditioners, refrigerators, and automobiles in the festival season. Consumers are sensitive to both initial pricing and to the long-term value of their acquisitions, thereby making GST-induced affordability a primary driver behind the surge in sales.

Digital-First Shopping Trend

Online purchasing has emerged as a dominant and rapidly growing channel during India’s festive season, reflecting a significant shift in consumer behavior towards digital platforms. Urban households are using e-commerce websites and mobile apps to search for lower prices, compare prices at outlets, read reviews from fellow consumers, and make purchases. High-end household appliances like smart televisions, washing machines, air coolers and refrigerators are also being bought online, with websites providing great festival offers, EMI facilities, and home delivery. Not only in the metros, but also in Tier 2 and Tier 3 cities, online shopping is driven by the growing internet penetration, as well as increasing use of online portals.

Influence of Social Media and Online Reviews

Social media reviews and influencers are increasingly shaping consumer preferences, playing a more significant role in guiding purchasing decisions than ever before. In today’s landscape, brands actively collaborate with influencers to communicate product value, showcase offerings, and provide authentic endorsements. Consumers, especially the younger generation, rely heavily on them to form an impression of the usability and performance of consumer durables before making a purchase. Influencer campaigns are part of the integrated promotional campaigns throughout the festivals, closing the gap between consumer confidence and brand messaging.

Early and Pre-Planned Purchases

In contrast to last-minute pre-holiday spending extravaganzas, today’s consumers are increasingly planning and completing their holiday shopping well in advance. High-value purchases, in particular, are often made weeks in advance to capitalize on early-bird discounts, secure pre-booked items, and ensure timely delivery. Online stores and physical stores have also joined in by offering pre-holiday deals and VIP previews to motivate consumers to shop early and distribute the festive-season supply chain load.

Tier 2 and Tier 3 Cities Fuelling Expansion

While metro cities have been the traditional strongholds of festive shopping, Tier 2 and Tier 3 cities are fast emerging as core markets. Increased disposable incomes, enhanced brand consciousness, and connectivity to retail chains have transformed the cities into a market for consumer durables. Home appliances, televisions, and personal electronics are witnessing high use rates, with consumers opting for mid- and high-end products offering both ruggedness and the latest technologies.

Shoppers today are not looking for something beyond price offers; they are looking for greater value in terms of reward loyalty, cashback, and bundling. Buyback on rewards indicates the presence of a mature purchasing culture wherein the buyer is evaluating the total value proposition of the product. Brands and retailers are taking advantage of this with the implementation of loyalty programs, time-limited offers, and festival promotions to gain and retain consumers.

Managing Supply Chain Pressures Amid Festive Demand

The festive requirement is also a challenge for manufacturers and vendors. Despite robust sales efforts, supply-side constraints, such as inventory shortages and logistical challenges, may hinder the ability to deliver products within the expected timeframe. Electronics and automotive sectors, especially, face pressure in terms of availability of components as well as movement, and therefore festival planning as well as real-time inventory management become a must to harness consumer demand.

Evolving Preferences: From Value to Premium

There is a clear premiumisation trend for consumer durables, too. Consumers are increasingly embracing expenditure on more advanced models with innovative functionalities, pointing to demand for quality, technology, and longevity. Desired products are mainly energy-efficient air coolers, air conditioners, intelligent televisions, and premium kitchen appliances, which signal the shift from necessity spending to experience- and value-based spending.

Capitalising on the Festive Shift

The 2025 festival season demonstrates how Indian consumers are turning out to be educated, value-conscious, and digitally active consumers. Policy reforms such as GST simplification, e-commerce expansion, influencer marketing, and aspirational consumer thinking are all transforming the buying of durable goods. Manufacturers and retailers must continue to be aware of these trends to implement initiatives that not only reach festive highs but also create long-term customer loyalty. With the festive shopping environment in India becoming increasingly competitive, those organisations that are capable of responding on time to such evolving situations are most likely to emerge as champions in this competitive festive period of shopping.

(The author is Founder And Chairman, Raj Cooling Systems)

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