The consumer plays a vital role in the study of marketing. The needs of customer are catered by changing demographics which categorizes the potential customers on the basis of age, gender, geographical location, education level, marital status, household income, occupation and hobbies. The peer group of buyers is also identified in the market by their attitudes, purchasing power and awareness of the product. It is very important for every business man to provide best product service in convenient mode. The changes in Indian consumer demographics are influenced by purchasing power of consumers, increasing income of consumer, market culture and availability of branded goods in the market. The Demographics are the major strands of customer segmentation where competent marketing resources are used for business breaks. The study of this paper is to understand the trends in buying behavior in a particular market scenario like retail market. The purpose of the paper talks about the changing scenario of Indian consumer demographics in the business world relating to various consumer goods. Although every consumer has distinct feature influenced by the demographic factors, the paper also deals with challenges faced by retailers with changing demographics and how are they been utilized for business opportunities. The increasing prospects for business in the retail industry in India are creating employment opportunities as per the changing trends. Even the online shopping strategies are bringing the world on one platter with emerging global markets, franchises, merchandisers etc. This is making the customer to visualize various products which are available in different brands and with different price tags that fit into their budget. This will help to understand the means to create the demand for goods in order to increase the sales, as well as lead for expansion of their business. It is a future path for producer to make brand image in the market. The large business houses are benefited by segmenting the market domestically and internationally in rendering services and offering goods to consumers at different prices. Similarly, small marketers are benefited with geographic segmentation to target specific customers and save their advertisement expenditure. It is even easy to identify the targeted customer as the personal information is collected through database. The research paper is developed based on reviewing related literature of consumer demographics, customer choice, growth of the retail sector and the challenges faced in India. The information is collected from secondary sources like books, journals, various research articles; relevant documents magazines and analyzing retail business. The result of research is focused on growth of retail markets, its contribution to economy, changing lifestyles, the consumer purchases and key factors of Indian consumer behavior. We can say that the consumer’s perception is towards price and quality sensitive than looking for brand loyalty. There is a substantial increase in the buying power and greater ease in customizing or placing orders of their choice. With the growing population to cater the needs of customers the consumer markets expanded their services through digital marketing such as online, social media and internet in the present competitive situations.

Keywords: Retail Market Growth; Trends in Consumer Demographics; Contribution to Economy; Online Marketing; Challenges of Retailers.