Diwali 2025 saw a strong surge in growth and heightened purchase intent with 93% of Indian consumers shopping online during the festive season, according to insights from media platform Criteo. There was a notable upswing in sales across key retail categories, with fashion, home decor and health and beauty leading the way.
During the two weeks before Diwali, online retail sales recorded a 14% year-on-year growth, reaffirming the festival’s position as a cornerstone of India’s retail calendar. Growth in online sales peaked at 51% while traffic peaked at 36% two weeks ahead of Diwali.
In contrast, consumers had a more measured buying journey last year, with an average of 15 days between the first product view and final purchase. Some of the most deliberate shoppers took over six weeks to complete their transactions, underscoring a thoughtful and research-driven approach to festive shopping, Criteo’s analysis showed.
Bargain hunters
Indian shoppers prioritise great deals, and this year, the platform noted, shoppers began scouting for deals nearly a month before Diwali.
Criteo found that 59% of consumers said discounts were the biggest motivation for consumers to try new online stores during Diwali. Free shipping (46%) and exclusive products (45%) were the next biggest motivators, reflecting how value and exclusivity drive festive purchases.
The desire for fast delivery attracted 45% of shoppers, while 43% were drawn to discounts unavailable elsewhere and another 43% to early access to Diwali offers. This underscores how value, convenience, and credibility together shape festive shopping behaviour in India.
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, personalised festive journey”.
Criteo data indicated that with advertising competition intensifying, the growth in average CPCs stood at 45% and CPMs averaged by 26% in the two weeks leading up to Diwali.
However, brands that invested early saw stronger returns and higher visibility. Conversion rates showed notable growth across categories, led by fashion and apparel, which recorded a significant uplift as early-month sales outpaced traffic.
Style and self-care remain central to the festival
Fashion emerged as the top-performing category with a 71% spike in peak-day sales and a 30% average uplift in the last two weeks leading up to Diwali.
This was closely followed by the Home and Garden category, which recorded 3x sales driven by lighting items and candles, reflecting strong consumer enthusiasm for festive-centric purchases.
During the peak pre-festive period (October 7–12), the Health and Beauty category registered a robust 63% increase, driven by gifting kits, skincare, and hairstyling products.
Consistent demand across categories highlighted how personal style, home aesthetics, and self-care remained central to festive consumption, signalling a shift toward holistic and experience-driven celebrations in 2025.
