Amazon Great Indian Festival: Premiumisation Rises, But India Still Wants A Deal

As Amazon India gets ready to open the doors to its Great Indian Festival 2026 tonight, the e-commerce giant is seeing a consumer trend that could shape this year’s festive shopping. Indians are increasingly willing to trade up to premium products, but they still want to know they are getting the right value.

From smartphones priced above ₹30,000 to premium beauty products, Amazon says the shift is no longer restricted to Indian metros. At the same time, shoppers are becoming more careful about what they buy, comparing products, checking reviews and using social media and AI tools before spending.

The result is a festive shopper who wants a better product, but not necessarily at any price. For Amazon, that is creating an opportunity to push premium products while using bank discounts, EMIs and exchange offers to bring down the effective cost of the purchase.

Premiumisation Moves Beyond Metros

“Premiumisation is a very clear trend across categories,” Saurabh Srivastava, Vice President, Amazon India, told Outlook Business.

Amazon’s July survey of smartphone users found that 50% planned to upgrade their phones in the following three months. Almost all of those looking to upgrade were considering devices priced at ₹30,000 or above, according to Srivastava.

The trend is also visible beyond electronics. Amazon’s premium beauty segment is growing 1.5 times compared with last year, with nearly 70% of that growth coming from tier 2 and Tier 3 cities. Overall, almost 70% of Amazon’s customers are now coming from these markets, while 70% of its new Prime customers are also from tier 2 and tier 3 cities.

“So, if we say that the centre of gravity of customer demand has moved towards tier 2 and tier 3 cities, that would be a correct statement,” Srivastava said.

Shoppers Want Premium, Not Pricier

The premiumisation trend, however, does not mean consumers are simply opening their wallets for higher-priced products. Amazon says shoppers are looking for ways to make those purchases more affordable.

“We are not seeing customers move down the value chain. In fact, premiumisation is moving in the opposite direction,” Srivastava said.

Customers are instead looking at no-cost EMI, bank discounts, exchange offers and other financing options to make purchases more affordable. Amazon's Great Indian Festival offers include a 10% instant SBI card discount, along with other financing and exchange benefits.

That is already visible in the deals Amazon is bringing to the festive sale. The Samsung Galaxy S25 Ultra, for instance, will be available at ₹84,999, while the Galaxy Z Fold7 is listed at ₹1,29,999. The Apple iPad Air M4 is priced at ₹67,999, among other higher-ticket offers.

Amazon says it has also seen a 30–40% demand spike from early deals launched ahead of the main sale.

The Better-Informed Festive Shopper

What is changing alongside premiumisation is the way consumers decide what to buy. Shoppers are spending more time comparing products, reading customer reviews and arriving with preferences shaped by social media and influencers.

“Customers are much more informed today,” Srivastava said, adding that greater awareness is creating a desire for higher-quality products.

AI is adding another layer to that decision-making. Amazon says customers are increasingly using Rufus to compare products and features, summarise reviews and find products based on specific requirements. Tools such as Lens AI, Shop the Look and personalised recommendations are also being used to make product discovery easier.

As Srivastava put it, Amazon has brought “all our might” behind delivering the “best value of the year” during the Great Indian Festival.