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Mind, Behavior, & Markets During the Indian Festive Season

  • Oct 6, 2025
  • 10 min read

Written by - Mansha Kapoor  (3rd year) Department of Applied Psychology

The Indian Festive Season: Why Brands Love It

India is often described as the land of festivals, but this phrase only partially captures the central role of festivities in the nation’s cultural and social life. The last 4 months of each year is the “festive season,” marked by a spectrum of cultural celebrations, one that shapes the ambience of every region and the priorities of every individual. The monotonous routines are disrupted by a period that is looked forward to as a breath of relief. The fervour of festivals in India brings along with it a feeling of communal togetherness and harmony, where people find themselves making meaning through a sense of collective well-being. Beyond the dazzling lights, melodic tunes, and the aromatic allure of festive delicacies, there exists a nuanced interplay between the celebrations, with brand strategies making use of these celebrations and the consumer’s response towards them. 


Gift-giving is an intrinsic part of Indian culture, steeped in tradition, emotion, and deep-rooted social significance. While material value plays a role, the essence of gifting in India extends far beyond the object itself – it is an expression of love and gratitude. The roots can be dated back to the notion of ‘Dana,’ the concept of selfless giving in Hindu philosophy. Each festival has its unique tradition of gift exchange, reinforcing social ties and familial bonds, from the gifts of Diwali symbolising prosperity, luck, and happiness to the gifts of Raksha Bandhan, celebrating the bond of love between siblings. 


Further, since this time of festivities acts as a voyage away from the frenzy of life, it serves as a catalyst for increased attention to personal grooming and self-care. Activities and desires that remained unachieved now come into fruition for an individual, as this time becomes a signal to focus on oneself for once. This means that rituals such as getting one’s hair done, indulging in skincare routines, or buying that expensive bag one always wanted come into the spotlight. 


This focus on others and oneself during the festive season is an especially viable region of exploration for companies and brands seeking to make the most of their marketing campaigns. During these festivals, retail trade worth between Rs. 1-2 lakh crore takes place in the country. From the largest MNCs to the smallest of businesses, each company tries to cater to these demands of individuals and construct campaigns that target the right emotions and hit the right segment to be the first to sell a product. For example,- the Big Billion Days by Flipkart, Great Indian Shopping Festival by Amazon, Pink Day Sale by Nykaa, and many more.

Thus, the triad of brands, consumer behaviour, and culture is a dynamic and interesting phenomenon that this article aims to shed light on by emphasising the tactics used by brands during these festivities and the psychological patterns occurring in consumers that dictate their responses to the tactics.


Evolving Trends in Festive Marketing: What the Brands Do

Major Indian festivals serve as the backdrop for some of the most iconic advertising campaigns, as brands seek to capitalise on the increased spending and emotions during these times. As the festive season begins to roll around, so do different offers, – flat discounts, buy-one-get-one offers, hourly hot deals, etc. If we carefully observe this crucial period for both consumers and brands, certain emerging trends come into light. 


  • Personalisation and Regionalisation

With increased focus and conversations around embracing India’s regional, linguistic, and cultural diversity, brands are making a shift towards catering their campaigns to all types of demographics, or rather, the segments of the market that are forgotten in the previous promotional campaigns through the years. There is a focus on collective well-being, targeting familial relations and a spirit of togetherness that encapsulates India in spite of its heavy diversity.

For instance, the Kalyan Jewellers’ 2023 advertisement for Diwali included not just Hindi cinema celebrities but also actors from the Southern states to harness a feeling of inclusivity in their audience.


A spirit of unity and emotion is kindled by embracing the differences in people and situations. Like how around 10 years ago, the revolutionary Tata Tea “Jaago Re” Campaign’s Diwali version highlighted how not every Indian gets the chance to celebrate festivals with their family – from police officers to ambulance drivers – with everyone having a different story to tell on festivals, thus bringing forgotten voices into the spotlight. This kind of personalisation doesn't just capture the consumer’s attention, but also leaves a mark on them. It doesn’t just become about buying a product after this; it becomes about forming an emotional connection with the brand and the products.


  • Purpose-driven campaigns

This emphasis on a purpose beyond profitability has emerged from the shift in attitude of consumers who have become more conscious of their purchases.  Brands are not just focusing on ‘selling’ their products through manipulation tactics, but through the design of purpose-driven festive campaigns that focus on social causes, environmental sustainability, or acts of kindness. There has been a focus on the importance of ‘giving’ during festivals, raising concerns that go unchallenged and overall tapping into people’s humanity for one another. 


HP's 2022 Diwali Ad campaign, “Iss Diwali, Thodi si Jagah Banalo” was a beautiful call to support local artisans and make a little space for their craft in our homes. HP stores across 15 cities in India during Diwali created a corner to exhibit the art and crafts of local artisans, allowing consumers to enter and exit their stores with a warm feeling in their hearts. Myntra’s festive advertisements have also, throughout the years, brought into light the struggle and hard work of domestic helpers, emphasising the spirit of giving back during this time and uplifting those who make our lives easier.


  • Harnessing the Power of Digitalisation

A significant phenomenon that has come into fruition in the past decade has been the rise of huge festive sales organised by e-commerce platforms like Amazon, Flipkart, Myntra, and many more that try to capitalise on the two notions discussed in the article – the need of consumers to buy gifts for others and the desire to indulge in materials and services for oneself. In fact, according to the Marketer’s Guide to India’s Festive Season - 24 by Glance, around 77% of consumers increased their festive budgets in 2024 compared to the previous year. Online platforms have become landmarks for satisfying consumer needs within mere clicks.


Understanding the Consumer Psyche of Festive India

While we’ve understood how brands position themselves in this festive market to try and target the right segment, it is also equally important to understand the psychological aspects of the consumer behaviour and responses to these trends in the market. What are the patterns that lead them to make these purchases? What are the biases and effects that lead them to make the decisions that they do?


One of the most prominent concepts to understand in consumer psychology is ‘motivation’ - what would entice a consumer to buy a product and why, and specifically this brand’s product? Psychologists use the concept of ‘need’ to describe the motivational properties of behaviour through the ‘motivational cycle.’



A need is a deficiency of some necessity that leads to the formation of ‘drive’. A drive is a state of arousal produced by a need that energises random activity. When one of the random activities leads to a goal, it reduces the drive, and the organism stops being active and returns to a balanced state. If we understand this cycle in consumer experience terms, it would go something like this – 

During Diwali, for instance, a consumer may feel the need to buy a new TV for their parents. This will create a drive or a psychological tension in the consumer to buy something that matches the festive spirit and gives back to their parents, accommodating their needs. Energised by this drive, the consumer will begin exploring options through random activities, such as browsing festive sale pages, comparing deals, or checking reviews. Eventually, they might find an attractive discount on a TV during a sale online and make the purchase. Achieving this goal not only fulfils the practical need but also brings emotional satisfaction, reducing the inner drive of the consumer. Thus, a brand that emphasises giving back to parents through gift-giving, one that can capture good reviews, offer competitive discounts, and easily reach the consumer, will be the one picked by this consumer. 


Another crucial concept that governs most decisions of consumers is their biases in decision-making. ‘Heuristics’are mental shortcuts that provide quick estimates, though sometimes inaccurate ones, for decisions about uncertain events by drawing inferences from past events. For instance, the Representativeness Heuristic is the tendency to judge the likelihood of an event by the extent to which it resembles the typical case. During the festive season, a consumer browsing Amazon sees a product listed under the “Great Indian Festival Bestseller” tag with bright festive graphics. Even without checking reviews in detail, the consumer assumes the product must be of high quality and reliable, because it fits the mental image (or “prototype”) of what a popular festive deal should look like. In reality, the product might simply be heavily advertised or discounted, not necessarily better than alternatives.


Similarly, the Availability Heuristic is the tendency to judge the likelihood of an event by the ease with which relevant instances come to mind. This ease depends on the actual frequency of the event, how noticeable the event is, its recency, and whether attention was paid or not. For instance, during Diwali sales, a shopper might be hesitant to order a large appliance online because they recently heard two friends complain about late deliveries during last year’s festive rush. Even though lakhs of successful deliveries happen on time, this easily recalled negative instance prevents the person from ordering online.


Another heuristic is called the Anchoring and Adjustment Heuristic. In estimating how frequent or likely an event is, people make use of a starting point called an anchor and make adjustments up and down from this anchor. For instance, when shopping during Diwali sales, a consumer sees a smartwatch originally priced at ₹15,000, but now available for ₹7,999. The anchor is the initial higher price shown (₹15,000), which creates the perception of great value. Even if the actual market price for similar watches is closer to ₹9,000, the consumer mentally “adjusts” their judgment of what is a fair price based on the anchor provided. As a result, they see ₹7,999 as a bargain and are more likely to purchase it—even though the deal may not be extraordinary in real terms. 


Such anchors can also take the form of an "Arbitrary Coherence", where customers consider anchors, albeit arbitrary, in making decisions. Statements like "Bigger than ever sale" or "additional 20% off" are proclamations with no specific benchmark of comparison, but the fluffy nature of the statement makes them sound lucrative.


Festive seasons also see the playing out of the Social Proof Bias – a bias which is based on a trust in others. Marketers trigger ‘herd mentality’ and suggest social proof for their products, both to customers in physical stores and those online. For consumers shopping in a physical format, their decision to purchase may be based on the type of customers they see checking out the given products. While social proof may be simulated online by emphasising customer reviews on the website. 


Companies also use social proof coupled with ‘loss aversion’ to trigger what is popularly known as the fear of missing out (FOMO). Loss aversion, according to Kahneman and Tversky’s Prospect Theory, is a cognitive bias where the psychological pain of a loss is felt more intensely than the pleasure of an equivalent gain.

To illustrate, a consumer browsing for a festive outfit sees a message: “10,000 people bought this kurta set today. Only a few pieces left!” The social proof comes from the large number of buyers, which signals popularity and quality. At the same time, the loss aversion cue (“only a few pieces left”) highlights the risk of losing out if they delay. Together, this creates FOMO, nudging the consumer to buy immediately so they don’t miss what everyone else is enjoying.


Another bias that largely works is the ‘Endowment Effect,’ as trial rooms or test drives are used by retailers to invite customers to take ownership of the product, even if for a short period of time. Easy returns online simulate the same feeling. However, once they possess it, customers may find separation tough and involving a certain mental effort, which is best avoided, leading to permanent ownership. Coupling this with the idea of ‘treating oneself’ during the festive season leads to even easier decision-making, profiting the seller.


What a consumer can do, to prevent being misled or buying impulsively, is plan ahead. If a consumer is aware of a needed purchase, they will timely find the best market options, with deals that actually make sense, and plan finances accordingly. This will also reduce the commonly faced “buyer’s remorse” when we find out we could have gotten the same thing for much less, or a better product for the same price. The feelings of FOMO will also decrease as the person would be clear and content with what they want.


Conclusion

The Indian festive season is far more than a marketplace rush—it is a cultural tapestry woven with emotions, traditions, and aspirations. For consumers, it represents a time of connection, indulgence, and self-expression, while for brands, it is an unparalleled opportunity to build lasting relationships that go beyond transactions. As marketing evolves from discounts and offers to storytelling, purpose-driven campaigns, and digital personalisation, the real winners will be the brands that succeed in resonating with the hearts of consumers, not just their wallets. Ultimately, the triad of brand, consumer, and culture during this vibrant season illustrates how commerce and psychology intertwine, reminding us that in India, shopping during festivals is never just about products—it is about shared meaning, memories, and the joy of belonging.


Looking ahead, as technology, consumer awareness, and cultural values continue to evolve, festive marketing in India will only grow more dynamic and multidimensional. Brands that can balance innovation with authenticity, and strategy with sensitivity, will not just capture festive sales but also secure consumer trust and loyalty long after the celebrations fade. The festive season, then, becomes not only a driver of economic activity but also a powerful reflection of how deeply culture and commerce are interwoven in the Indian psyche.


References 



Written by:

Mansha Kapoor (Senior Coordinator)


Edited by:

Charu Gupta (Senior Editor)

Koena Gulabani (Senior Editor)

 
 
 

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