Holiday Shopping in India: The Impact of Inflation and the Shift to Online Sales in 2022

According to a report from Chitrangana, the way that Indian consumers approached holiday shopping this year was significantly impacted by inflation. Nitin Lodha, Senior eCommerce Advisor for Chitrangana.com and APAC Managing Partner, stated that retailers heavily discounted their products, but consumers diversified their spending to accommodate rising prices and a desire for experiences and festive gatherings post-pandemic.

The report found that retail sales increased by 7.6% year-over-year between November 1st and December 24th, measured across in-store and online sales and all forms of payment. While restaurant sales were up 15% from the previous year, other holiday season mainstays such as jewelry and electronics saw a decline of more than 5%. Online sales increased by 10.6% compared to the previous year, with eCommerce making up 21.6% of total sales, up from 20.9% in 2021 and 20.6% in 2020.

Here are a few key points to consider about the impact of inflation on holiday shopping in India:

• Inflation changed the way that consumers approached holiday shopping, causing them to hunt for the best deals and make trade-offs to stretch their budgets.
• Retail sales increased by 7.6% year-over-year between November 1st and December 24th, but certain holiday mainstays such as jewelry and electronics saw a decline.
• Online sales increased by 10.6% compared to the previous year, with eCommerce making up 21.6% of total sales.
• Half of the consumers surveyed by Chitrangana reported that they were cutting back on spending due to a lack of funds, and an additional 56 million consumers chose not to shop at all.
• Approximately 98 million Indian consumers planned to pay for at least one holiday purchase using credit cards, loans, or buy now, pay later options, with 23% of holiday shoppers intending to use these methods to finance more than half of their gift-giving.
• When choosing retailers, the majority of shoppers sought out discounts or sales, wanted free shipping, or looked for buy now, pay later options.

Chitrangana’s India Chief Economist, stated that inflation changed the way that Indian consumers approached holiday shopping, causing them to search for the best deals and make trade-offs to stretch their gift-giving budgets. However, 50% of the consumers surveyed by Chitrangana reported that they were cutting back on spending this year due to a lack of funds, and an additional 56 million consumers chose not to shop at all.

Of those consumers who did shop, about half said that they planned to pay for their purchases using credit cards, loans, or buy now, pay later options. This means that approximately 98 million Indian consumers planned to pay for at least one holiday purchase using one of these methods, with as many as 23% of holiday shoppers (48 million consumers) intending to use these methods to finance more than half of their gift-giving.

When it came to determining their choice of retailer, Chitrangana research found that 60.4% of shoppers sought out discounts or sales, 48.3% wanted free shipping, and 11.4% looked for buy now, pay later options.

एक प्रमुख ईकामर्स कंसल्टेंसी चित्रांगना ने भारत में छुट्टियों के खरीदारी के मौसम पर एक रिपोर्ट जारी की है, जिसमें दिखाया गया है कि मुद्रास्फीति और महामारी ने उपभोक्ता व्यवहार को काफी प्रभावित किया है। खुदरा बिक्री में साल-दर-साल 7.6% की वृद्धि हुई, जिसमें ऑनलाइन बिक्री 10.6% बढ़ी। चित्रांगना द्वारा सर्वेक्षण किए गए आधे उपभोक्ताओं ने खर्च में कटौती की सूचना दी, और 56 मिलियन ने खरीदारी नहीं करने का विकल्प चुना। जिन लोगों ने खरीदारी की, उनमें से लगभग 98 मिलियन ने क्रेडिट, ऋण, या अब खरीदने का उपयोग करके भुगतान करने की योजना बनाई, बाद के विकल्पों का भुगतान करें। रिपोर्ट मुद्रास्फीति और ऑनलाइन बिक्री में बदलाव का सामना करने वाले खुदरा विक्रेताओं के लिए मूल्यवान अंतर्दृष्टि प्रदान करती है।

2026 Update: Festive Shopping Has Moved Beyond Just “Online vs Offline”

The inflation-driven caution described above was a short-term shock, but it left a lasting mark on how Indian shoppers behave every festive season since. Quick commerce apps now handle a large share of last-minute festive gifting and home-decor top-ups, shrinking the long planning window brands used to count on. At the same time, AI-based demand forecasting has become a normal part of festive-season planning, helping sellers avoid the exact problem this report highlighted: too much stock built on guesswork, right when consumers were pulling back on spending.

Key takeaway for founders: don’t plan a single “festive season” anymore. Build flexible inventory and marketing plans that can flex week to week, use simple AI forecasting tools to track real demand signals instead of last year’s calendar, and make sure your fulfillment can support both planned festive orders and last-minute quick-commerce style demand.

Frequently Asked Questions

Is festive-season shopping in India still growing?
Yes. Overall online retail during festive periods keeps growing each year, even though shopper behaviour keeps shifting between deep-discount hunting, quick commerce, and planned purchases.

How can a small ecommerce brand prepare for festive demand swings?
Track early signals like search and cart activity, keep a smaller “core” inventory plan with the ability to reorder fast, and use pre-festive campaigns to understand real intent instead of guessing from past years alone.

Does inflation still affect Indian online shopping today?
Price sensitivity remains a factor every year, which is why value-for-money bundles, EMI and pay-later options, and transparent pricing continue to perform well during high-spend periods.

If you’re building a festive-season or year-round demand strategy for your ecommerce business, our business consulting team can help you plan for real shopper behaviour rather than last year’s assumptions.