As the Diwali season has set the nation aglow, Criteo has released new insights that reveal a significant shift in India’s festive shopping patterns. The 2025 festive period has seen a surge in online retail activity, with 93% of Indian consumers choosing to shop online, driving a 14% year-on-year growth in average sales.
Consumers have started scouting for festive deals as early as a month before Diwali, with fashion, home décor, and health & beauty emerging as the top-performing categories. Criteo’s analysis of shopper behaviour has shown that buying journeys have become more deliberate, with an average of 15 days between the first product view and final purchase. Some shoppers have taken over six weeks to complete transactions, reflecting a more thoughtful and research-driven approach to festive buying.
Online retail sales have peaked at 51% growth and traffic at 36% during the two weeks preceding Diwali, reaffirming the festival’s status as a cornerstone of India’s retail calendar. Discounts and offers have remained the biggest motivators, with 59% of consumers citing price reductions as the reason they explore new online stores during Diwali. Free shipping and exclusive products have followed closely as major draws, while fast delivery and early access to deals have further influenced buying decisions.
Among product categories, fashion has led the festive wave with a 71% spike in peak-day sales and a 30% average uplift in the two weeks leading up to Diwali. Home & Garden products have seen up to threefold growth, fuelled by lighting items and candles, while the Health & Beauty segment has recorded a 63% rise during the peak festive week, driven by gifting kits, skincare, and hairstyling products.
Criteo’s data has also indicated that competition in digital advertising has intensified, with cost-per-clicks rising by 45% and CPMs by 26% in the fortnight before Diwali. Brands that invested early have reportedly achieved better visibility and stronger returns. Conversion rates have shown an upward trend across categories, particularly in fashion and apparel, as early-month sales have outpaced traffic.
Medhavi Singh, Country Head, Criteo India, said, “Diwali reaffirms India’s rise as a dynamic digital retail market, where consumers shop smarter and earlier, balancing value with experience. Criteo’s insights show that Diwali is now a key retail moment driving growth across categories like fashion, home décor, and beauty. To harness this momentum, businesses must adopt a full-funnel, cross channel commerce media strategy that unites performance and experience for a seamless, personalized festive journey.”
