From AI Chatbots to Carts: How India Is Shopping This Festive Season

India’s 2026 festive season (Navratri through Dhanteras and Diwali around 8 November) is defined by a clear dual track: deliberate, AI-assisted research paired with a high rate of spontaneous buying. Shoppers are spending more overall, upgrading homes and devices more selectively, and using technology to navigate complexity in electronics, appliances, phones, laptops/tablets and automobiles, while still responding strongly to offers, visuals and festive urgency.

Average festive transaction sizes have risen (one survey projected roughly ₹24,020, up 46% from the previous season). Online festive GMV is forecast around ₹1.5-1.55 lakh crore (approximately 25-29% growth). Non-metros and Tier 2/3 cities are the main growth engine, often accounting for 60%+ of volume on major platforms and growing faster than metros. Financing (especially No-Cost EMI) and brand trust frequently matter more than the deepest headline discount.

AI as the new shopping companion

Roughly four in five festive shoppers are actively seeking or planning to use AI shopping assistants. A Google-commissioned Ipsos study found that nine in ten shoppers research extensively online (averaging more than eight searches and nearly eight videos), yet 70% of purchases are still decided impulsively. AI users consult chatbots an average of 7.5 times and explore 2.8× more touchpoints. About 51% credit AI with helping them make choices, particularly useful for explaining specs and weighing trade-offs in appliances and consumer electronics.

Amazon’s Rufus (available in English and regional languages), visual search tools, AI review summaries and a dedicated AI Store (launched after ~60% year-on-year growth in searches for AI-enabled devices, nearly two-thirds from Tier 2/3 cities) are concrete examples. Interest is high in smart search suggestions and related features. AI is most valuable for narrowing options and cutting through jargon; it still needs to be cross-checked against real reviews, exact offer terms and after-sales support.

Key festive shopping behaviours, India 2026

Impulse remains powerful

Festive urgency, creator content, short-form video and visual discovery still convert a large share of unplanned purchases. Delivery speed is frequently non-negotiable, and choices stay fluid until the last moment. Non-metro shoppers in particular are expanding into newer categories.

Shopping Category insights

Smartphones

Volumes are the clearest weak spot this season. Q3 2026 shipments (July-September) fell ~20% year-on-year according to Counterpoint Research (lowest level in a decade); Omdia reported an even steeper ~26% drop. Festive-season volume sales are projected to decline ~12% year-on-year, even while market value is expected to rise ~5%. Early online/Navratri data already showed unit sales down around 16%. The sub-₹20,000 segment was hit hardest (shipments down ~47% in Q3). Full-year 2026 shipments are forecast to contract around 13%.

The reasons are clear: record-high memory prices (DRAM and NAND) have driven multiple rounds of price hikes and significantly higher average selling prices. Festive discounts have narrowed (roughly 10-25% versus 25-40% last year). Consumers have responded by extending replacement cycles, deferring discretionary upgrades and becoming more selective. Brands have prioritised margin protection and leaner inventory over aggressive volume pushes. Trade-in programmes and No-Cost EMI continue to support upgrades (especially in mid-premium and premium bands), and demand for on-device AI features remains high, but they have not fully offset the affordability squeeze in the mass market.

Smartphone market pressure points, 2026

Laptops, tablets and computers

These show relative resilience. Platforms reported strong early-sale momentum for tablets and certain laptop models. Buying intent for laptops rose in some pre-festive tracking, and AI-ready or higher-spec devices are popular. Component-cost inflation has raised prices, so financing and exchange offers matter. Growth is more purpose-driven (work, study, content creation) than pure volume expansion.

Consumer electronics (TVs, audio, smart devices)

Home entertainment is a standout. Shoppers are choosing larger screens, newer display technologies and AI features. Amazon reported home entertainment devices growing at high multiples of average daily pace, with smart TVs driving the majority of that growth. The broader electronics category is expected to grow in the mid-teens percent range, solid but slower than some home and lifestyle categories, partly because some demand was pulled forward earlier in the year.

Home appliances

One of the clearest upgrade stories. Large appliances, higher-capacity refrigerators (including AI-enabled models), washer-dryers, air fryers, ovens and higher-rated ACs have seen sharp lifts on major platforms. Non-metros drove the majority of home-upgrade volume and grew faster than metros. No-Cost EMI is frequently the single most important pricing enabler. Energy efficiency, capacity and convenience features are resonating strongly.

Automobiles

Mixed and base-effect sensitive. Navratri retail was lower year-on-year versus the inflated 2025 period (GST changes and a longer window) but well above the comparable 2024 period. Two-wheelers have generally outperformed passenger vehicles in early registration data; EVs have shown clear strength. Dealers and manufacturers remain optimistic about the full stretch through Dhanteras and Diwali.

Category performance snapshot, festive 2026

Illustrative Amazon Great Indian Festival 2026 multiples (vs average day)

Practical insights for Festival shoppers

• Use AI to narrow options and explain jargon, then verify against recent reviews, official specs, price history and exact offer terms.
• Fix a hard budget and financing plan before browsing. No-Cost EMI and trade-in bonuses are useful but can encourage overspending.
• Confirm delivery timelines, installation support and service coverage, especially for appliances, large TVs and vehicles, and particularly outside metros.
• Treat short-form video and creator content as inspiration, not proof. Pause long enough to check whether a deal is genuine versus recent pricing.
• For phones, the festive window is still relatively attractive because further price increases are expected after Diwali. Prioritise trade-in value, verified AI features you will actually use, and clear EMI terms. Entry-level models have the least compelling offers; mid-premium and premium devices have stronger financing and exchange support.
• For laptops/tablets, match the configuration to real workloads. For appliances and TVs, prioritise capacity, energy rating and after-sales. For vehicles, lock in delivery dates and full cost of ownership early.

India’s 2026 festive shopper is better informed and more digitally assisted than in previous years, yet still highly responsive to the emotional pull of the season. The best outcomes come from letting AI and structured research handle the complexity of electronics, appliances, computing devices and vehicles, while keeping a firm grip on budget and genuine need so that impulse remains a pleasant bonus rather than a source of regret.