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Gen Z splurges early on Diwali shopping, fashion tops spending list

Young Indian consumers are planning their festival purchases well in advance, with clothing emerging as the dominant category in their Diwali spending plans. A new study reveals distinct shopping patterns among Gen Z as the festival season approaches.

LSN India · 11 October 2026

Gen Z splurges early on Diwali shopping, fashion tops spending list

Gen Z shoppers across India are preparing for Diwali with shopping strategies tailored to different product categories, according to recent consumer research. The younger demographic demonstrates a mixed approach to festival purchases, combining both planned acquisitions and impulse buying, particularly in the fashion segment.

Clothing dominates Gen Z's Diwali shopping agenda, with 68 percent of respondents indicating plans to purchase new garments for the festival season. This substantial portion reflects the cultural significance of wearing new attire during Diwali celebrations, as well as the appeal of fashion as a key spending category among younger consumers.

Gen Z shoppers employ deliberate decision-making processes when selecting clothing purchases. Before finalizing their choices, they consider various factors including style preferences, budget constraints, and value for money. The demographic balances planned shopping lists created weeks in advance with spontaneous purchases made closer to festival dates.

The shopping behavior indicates that while younger consumers value organized preparation, they remain flexible enough to capitalize on last-minute deals and trending items. This hybrid approach—combining advance planning with opportunistic buying—appears to be defining festival shopping patterns among India's Gen Z population as Diwali approaches.