Festive shoppers plan bigger spends as AI reshapes buying journey

MUMBAI: India’s festive shopping list is getting smarter before it gets longer. Consumers may be opening their wallets wider this year, but they’re taking a more calculated route to the checkout, with artificial intelligence emerging as an unlikely shopping companion alongside traditional digital channels.

Nearly 45 per cent of Indian consumers plan to increase their festive spending this year, but the extra outlay is expected to be directed towards more considered purchases rather than impulse buying, according to MiQ’s Festive Shopper Insights 2026.

The study, based on responses from more than 5,700 shoppers across India, suggests that festive buying behaviour is becoming increasingly deliberate, with consumers prioritising premium purchases while expanding the number of channels they use to discover brands.

Jewellery emerged as the category with the highest purchase intent for the festive season, followed by home appliances, while personal gadgets are making a comeback after witnessing softer demand last year. The report also found significant regional differences in shopping preferences, indicating that advertisers may need more localised messaging rather than a one-size-fits-all national campaign.

Perhaps the biggest shift is in how consumers are discovering products. AI-powered search has rapidly emerged as a new discovery platform, with 43 per cent of respondents saying they use AI tools to explore brands. That places it ahead of e-commerce platforms, used by 30 per cent of shoppers, and social media, which accounted for 27 per cent.

The findings suggest AI is becoming an increasingly important part of the consumer journey, joining search engines, marketplaces and social platforms as another gateway to brand discovery.

While discounts remain important, they are no longer the biggest influence on purchase decisions. Brand loyalty topped the list, cited by 38 per cent of respondents as the primary reason behind their purchases, ahead of deals and discounts at 34 per cent and celebrity endorsements at 29 per cent.

The report also highlights the growing complexity of media consumption during the festive season. Eighty-six per cent of shoppers switch between digital activities at least once every hour, while 61 per cent simultaneously use a second device while watching television, with this behaviour peaking after 8 pm.

For advertisers, that changing behaviour is translating into a stronger focus on video-led campaigns. According to MiQ, video now attracts the largest share of festive media investment, while Connected TV (CTV) is recording double-digit growth, reflecting brands’ efforts to reach consumers across multiple screens.

The report also arrives as festive advertising costs continue to climb. MiQ estimates that media rates can rise by as much as 42 per cent in the run-up to the festive season, making campaign efficiency increasingly important. The company said campaigns run through its AI-powered MiQ Sigma platform delivered 88 per cent less made-for-advertising (MFA) inventory than the market average and ranked among the top 5 per cent of the industry for ad recall. During Akshay Tritiya, a jewellery campaign executed on the platform also achieved 59.4 per cent incremental reach through a unified OTT strategy.

The findings underline a broader shift in India’s festive economy. Consumers are still prepared to spend, but they are researching more, comparing more and increasingly letting AI guide the journey. For marketers, winning the festive season may no longer be about shouting the loudest—it may be about showing up in the right place, on the right screen and at precisely the right moment.