Summary of this article
60 per cent Gen Z shoppers spend more during festivals.
Family expectations are the leading trigger for festive overspending.
Online search leads gift discovery, ahead of personal judgement.
Festivals are changing how young Indians manage their shopping budgets, with many spending more than they usually would on clothes, food, gifts and celebrations. However, what they buy and how much they spend depends on where they live and what influences their choices, according to a recent study by YouGov and Rukam Capital.
The study, titled Gen Z: A Deep Dive into India’s Most Influential Consumer Cohort, surveyed 4,002 individuals aged 18-29, and found that 60 per cent of respondents spent more during major festivals, while 40 per cent went for unplanned shopping.
Family Pressure Drives Overspending
According to the study, family expectations played the biggest role when young shoppers went beyond their budgets. Around 34 per cent identified family pressure as a reason for overspending. Discounts were another major factor, influencing 29 per cent, while emotional connections influenced 28 per cent.
The reasons differed across states. In Odisha, family expectations influenced 42 per cent of respondents, the highest among the states covered. Discounts had the strongest impact in Chhattisgarh at 37 per cent. Telangana recorded the highest influence of emotional connections at 35 per cent.
Self-gifting also played a part in festive purchases. The tendency was highest in Jharkhand at 29 per cent, followed by Uttar Pradesh and Rajasthan at 28 per cent each.
Clothes And Food Take Up The Biggest Share Of Festive Budgets
Clothing and food were the two leading categories in young consumers’ festive shopping lists. Both accounted for 49 per cent of spending nationally. Gifts came next at 36 per cent, followed by religious items at 35 per cent and home décor at 33 per cent.
The state-level data painted a different picture. Fashion spending was highest in Chhattisgarh at 61 per cent, while Bihar recorded the highest preference for food at 59 per cent. In Telangana, food accounted for 56 per cent of festive purchases.
Spending also extended beyond products. Dining out was reported by 33 per cent of respondents in West Bengal, while travel spending reached 31 per cent in Kerala.
No More Traditional Gifts
Family members were the main recipients of festive gifts, with 74 per cent choosing parents and other relatives. Friends accounted for 61 per cent, while partners were recipients for 39 per cent.
The type of gifts also depended on the region. Cash was a popular choice in Chhattisgarh and Madhya Pradesh, while personalised presents found favour in Andhra Pradesh and Odisha. Jewellery gifting recorded a 38 per cent preference in both Karnataka and Andhra Pradesh.
Technology also influenced gift selection. Online searches were used by 41 per cent of respondents to find gift ideas, compared with 39 per cent who relied on personal judgement. AI tools were already being used by 25 per cent to get gift suggestions.
The study also pointed to differences in shopping behaviour across regions. While respondents in north Indian reported higher festive spending, the south showed a preference for personalised items. Digital discovery was more prominent in the east, while experience-based spending featured more strongly in the west, the study further said.
