InMobi finds festive shoppers prioritise trust over discounts in 2026

MUMBAI: This festive season, the biggest bargain may not be a bargain at all, as Indian shoppers appear to be putting trust before the discount tag. A new InMobi Advertising study finds that brand trust is the top purchase factor for 27 per cent of festive shoppers, ahead of discounts and festive offers at 22 per cent.

The findings come from an on-device consumer study conducted between August 7 and August 11, 2026, covering 1,110 male and female consumers across Android and iOS, Tier 1 to Tier 4 cities and Gen Z, millennials, Gen X and Boomers. The report, The Marketer’s Guide to India’s Festive Season 2026, examines spending plans, shopping behaviour, media consumption and the growing role of AI in festive discovery.

The wallets are opening up too. Just 4 per cent of shoppers plan to spend less this festive season, while budgets are either flat for 19 per cent or growing for 96 per cent of shoppers. Overall, 77 per cent say their festive shopping budget has increased compared with 2025.

The Rs10,001 to Rs25,000 bracket is the biggest spending band, accounting for 31 per cent of shoppers. Another 26 per cent plan to spend Rs5,000 to Rs10,000, while 21 per cent expect to spend Rs25,001 to Rs50,000. Ten per cent are preparing to spend more than Rs50,001 and 12 per cent plan to spend less than Rs5,000.

Three in five shoppers plan to spend more than Rs10,000, while the share planning to spend above Rs50,000 has risen by 2 percentage points from 2025.

The report also challenges the idea that premium spending is concentrated among iPhone users or metros. Ten per cent of Android users and 12 per cent of iOS users plan to spend more than Rs50,000. At the Rs25,000 to Rs50,000 level, Android users lead at 22 per cent compared with 15 per cent among iOS users.

Tier 2 shoppers are similarly closing the spending gap with Tier 1. Some 35 per cent of Tier 2 consumers plan to spend Rs10,000 to Rs25,000, compared with 33 per cent in Tier 1. Tier 1 still has the edge among shoppers spending more than Rs50,000, at 13 per cent compared with the corresponding Tier 2 figure, while 14 per cent of Tier 2 shoppers plan to spend less than Rs5,000.

The festive mood is also closely tied to togetherness. Shopping is the biggest excitement driver at 86 per cent, followed by spending time with friends and family at 67 per cent and gifting at 50 per cent. Three in four shoppers say they make the purchase decision themselves, while spouses or partners influence two in five decisions and parents influence one in three.

But shoppers are not necessarily starting early. The report finds that 62 per cent begin their festive shopping journey within the final month. The largest group, 33 per cent, starts two to four weeks before the festival, followed by 29 per cent who begin one to two months ahead. Another 21 per cent start around a week before, while 8 per cent leave it to less than a week. The share of last-minute shoppers has increased by 5 percentage points from last year.

Fashion remains the largest festive category, with apparel, footwear and accessories attracting 51 per cent interest. Jewellery follows at 40 per cent, while grocery and daily essentials stand at 37 per cent. Both jewellery and grocery have gained 5 percentage points compared with last year.

The shopping journey is increasingly online even when discovery happens elsewhere. Seventy-five per cent of shoppers use online product reviews before purchasing, 53 per cent use search to research choices and 47 per cent rely on social or influencer content. Overall, 73 per cent of festive shoppers buy online, while 58 per cent research and purchase online, 15 per cent research in stores before buying online and 17 per cent both research and purchase in-store.

AI is also moving from novelty to shopping assistant. Smart search suggestions are the most appealing AI feature at 89 per cent, followed by virtual product try-ons and complete-the-look suggestions at 81 per cent each. AI-based recommendations and voice search or chat assistants attract 75 per cent each.

Four in five shoppers want an AI shopping assistant for the festive season, while 79 per cent are interested in personalised smart TV advertising with virtual try-on. Millennials show particularly strong interest in AI-based recommendations at 82 per cent, compared with 71 per cent among Gen Z.

The generational split is visible in spending too. Millennials have the strongest appetite, with 27 per cent planning to spend Rs25,000 to Rs50,000. Gen X follows at 17 per cent and Gen Z at 16 per cent. Millennials are also more likely to have increased their budgets, at 85 per cent compared with 71 per cent among Gen Z.

Gen Z and millennials share several shopping triggers: 88 per cent and 90 per cent respectively are interested in smart search suggestions, 66 per cent in both groups say limited-time offers influence purchases, and 65 per cent of Gen Z and 66 per cent of millennials identify short video ads as the most engaging format.

Gender also changes the route to discovery. Women are 11 percentage points more likely than men to seek festive ideas and inspiration and 8 percentage points more likely to respond to attractive visuals and video stories. They also over-index on beauty by 17 percentage points and jewellery by 12 percentage points.

Men, meanwhile, are 6 percentage points more likely to begin their festive journey on a brand-owned app and 5 percentage points more likely to discover products through brand websites. Nearly one in three men also plan to shop for jewellery this festive season.

Tier 2 markets bring another twist. Tier 2 shoppers are 9 percentage points more likely than Tier 1 consumers to research products through lock-screen recommendations, while parental influence on purchases is 9 percentage points higher. Seeing the same festive advertisement across multiple touchpoints makes Tier 2 shoppers 12 percentage points more likely to click or buy, and they are 10 percentage points more likely to prefer Hindi over English in festive advertising and content.

At the same time, Tier 2 matches Tier 1 in quick-commerce adoption but trails it by 10 percentage points on interest in AI shopping assistants, suggesting room for further growth in AI-led discovery.

The report’s broader message is that festive shopping is no longer a simple journey from advertisement to checkout. Consumers are moving between lock screens, apps, connected TV, search, social platforms and increasingly AI-led discovery before making a decision.

For marketers, the festive race therefore may not be won by the loudest discount, but by the brand that manages to remain relevant, recognisable and trusted across the many screens and moments between discovery and purchase.