1 in 4 Andhra urban households to spend over Rs 20,000 this festive season

Visakhapatnam: A recent survey by LocalCircles, an online community platform, reveals how urban households in Andhra Pradesh are gearing up for the festive season of 2025 (Sept–Nov). Most urban households plan to spend between Rs 5,000 and Rs 20,000, while a notable 14% are prepared to spend up to Rs 50,000 beyond their regular monthly expenditure. Only a small portion intend to spend Rs 100,000 or more. With the Govt's recent GST reforms reducing prices of white goods, consumer electronics, and food items, experts expect festive season spending to receive a further boost.

Traditional shopping remains dominant, with 69% of respondents preferring to visit malls, retail stores, or local markets. However, online shopping is gaining momentum, with 21% opting to use eCommerce platforms or apps. A few households also reported relying on phone or WhatsApp orders through store catalogues, while others mentioned alternative channels or remained undecided. For those choosing to shop online, the leading motivations include better product selection, ease of return and refund, and more attractive deals and offers. Additional factors such as shopping convenience, product comparison, faster delivery, and brand trust also play key roles. Notably, there was no ambiguity about these reasons—households appear to have clear drivers for shifting to digital platforms.

Big-ticket purchases this season are expected to focus on home renovation (31%), smartphones and consumer electronics (27%), and white goods and appliances. Apart from these, many households also plan to spend on gourmet foods, fashion and beauty products, festival lights, and various other everyday or seasonal items. The preference for non-luxury categories signals practical spending trends that combine both celebration and utility.

Trust remains central to online festive shopping. A strong 89% of online shoppers believe that trust—in terms of product quality, fair pricing, and ease of return and refund—is vital when selecting a platform or supplier. When it comes to high-value items (priced above Rs 1,000), a robust return and refund process is considered extremely important by the majority, with virtually no one dismissing its relevance.

Digital payments are expected to dominate transactions this festive season. A vast 82% of households plan to use digital modes such as UPI, digital wallets, credit/debit cards, and net banking, citing convenience, bank offers, cashback, and safety as the primary reasons. Though cash is still used by over half of the respondents, it is increasingly being complemented—or even replaced—by digital alternatives.

Encouragingly, urban households across India are reporting improved perceptions of income and general economic conditions, with optimism growing despite ongoing concerns about employment and inflation. Pessimism around price levels and inflation has eased steadily over the past three survey rounds. With good monsoon forecasts and increasing eCommerce reach in tier II and III towns, experts believe that consumer spending during the festive season will be significantly driven by smaller cities.

The LocalCircles study also delved into the evolving role of online platforms during the festive season—examining the magnitude of growth in digital shopping, key product categories, and the factors influencing trust and payment preferences. The results highlight the continued rise of digital retail in urban India, supported by improved digital infrastructure, a growing comfort with online transactions, and an increasing demand for seamless customer experience.

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