In an era that is known for being customer centric, a detailed and thorough understanding of the customers is one of the pre-requisites to survive and be profitable. However, in the past few years, the Indian economy, most arguably, has witnessed a very tough time. In this scenario, the Indian retailers are initiating different types of strategies to attract the customers and bring back the sector on the growth track.

The Indian landscape has always been acknowledged for its diverse culture and varied people. In a country, where different cultures shape the lifestyle, personality, living patterns and values of an individual, it becomes imperative for the companies to analyze and understand the needs and wants of the customers. Analyzing consumer behavior involves the study of the buying patterns and habits of the consumers, which enables the companies to comprehend why or why not a consumer purchases a particular product. It helps the marketers to grasp the decision-making process of the buyer, both individually and in groups. It identifies the distinct-iveness of the diverse markets such as demographics and behavioral characteristics in an effort to understand the needs of the target audience. It also tries to evaluate persuasions on the consumer from groups such as family, friends, reference groups, and society in general. With the Indian economy still facing the heat of the slowdown, the need of the hour for the companies is to understand what the customer requires and act accordingly. With the entry of many foreign retailers into the country, many companies are recognizing the need to understand the transforming consumer patterns and behaviors in order to stay ahead in the competition. In this dynamic envir-onment, the needs and wants of the customers are also changing every day. The large number of products available and the stiff competition between the retailers also provides the customers with a lot of alter-natives to pick from. In the present scenario, it becomes very important for the retailers to analyze the consumer demand and accordingly offer the products which satisfy them. By understanding the needs of the consumer, a retail organization can direct its efforts in producing a wide range of products, which satisfies the consumers and thereby enables the organization to achieve its long-term goals and objectives. According to a recent report, investing in consumer research has become an important priority for any retail organization.

Market research agencies also opine that sufficient momentum needs to be given to understand the behavior of the shoppers. Use of appropriate technology to under-stand customer buying behavior is also an important ingredient of consumer research today. Many retailers are using sophisticated software for identifying the products which are in great demand, the products which are being purchased frequently by the customers, whether there are repeat purchases in that category or not and what products are purchased together. All this information can prove to be fruitful for the retailers and might help them to strategize on product positioning and merchandising. For instance, one of the leading apparel brands, by analyzing the buying pattern of the customers realized that women mostly purchase cosmetic items when they shop for apparel. Therefore, the company introduced a new offer of providing a cosmetic box free for every purchase of apparel worth Rs. 2500. The scheme proved to be extremely successful in driving the sales for the company.

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