Collaboration is the theme vividly painted at The Nielsen Company’s Consumer 360 morning kick off – as attendees found themselves consumed in data illustrating a continuously changing consumer mindset, fed by an ongoing shift in consumer psychology. And the message was clear from the start: collaboration at the retail-vendor level will be key the successfully navigating this challenging, changing landscape.

The grocery industry, indeed all of retail, is caught in the turmoil described in David Bowie’s 1971 classic “Changes.” Ch-ch-changes…turn and face the strain…Ch-ch-changes…just gonna have to be a different man. And while Bowie may have focused on the compulsive nature of artistic reinvention, the retail industry is focused now on its own reinvention – and that of today’s consumer.

Almost as if echoing Bowie’s own theatrical presentations, The Nielsen Company collaborated with Infinia Group to create a multi-media experience, entitled “Consumed: The Economy Hits Home.”

The dynamic learning platform brings guests into the minds of consumers with a series of video screens – streaming messages, visions, pictures, thoughts and observations, and of course, cutting-edge Nielsen data — combined to paint an exhibit of Mark Leiter (President, Professional Services) and John Lewis’ (President & CEO, North America of Nielsen Consumer] analysis Consumer or Consumed: Achieving Clarity in an Uncertain World.

Viewers of Consumed literally walk through Nielsen’s data and the consumer mind, sharing the latest perspective on how macro forces in today’s unpredictable economy are shaping consumers’ attitudes and behaviors. The fact is that today’s consumer is stressed, but the fact still remains that consumers are still actively shopping, buying and using a wide range of essential products. How the industry chooses to move ahead in the most productive manner is critical.

“Navigating through this new landscape requires bold leadership coupled with a sophisticated, analytical edge, one that allows you to see around the next corner and spot the many new options for growth as quickly as possible.”

Consumed spotlights nine chapters or elements to navigate- Contrast, Changes, Coping, Challenges, Channels, Choices, Competition, Clarity and Curiosity. In a blitz of media messages, the participant’s vision becomes clear – change is inevitable and welcome. The mission now is to get close to our consumers as an industry, understand and service their needs.

Key points include:

• The American dream is enduring, although that dream was just heavily edited.
• Most Americans can still afford the essentials: food, clothing and shelter.
• Living a healthier lifestyle isn’t a passing fad or fashion.
• Consumers are creatively redefining the media landscape.
• Long-term demographic forces will continue to created unprecedented growth opportunities.

Summer’s coming. Beer season. And as grocery retailers develop strategies to help maximize their sales during the 2009 summer selling season, it’s clear there are a number of unanswered questions about the economy that could impact your business: Have job losses begun to stabilize? Which way will the stock market go today? Have we hit rock bottom yet?

If we had a crystal ball, it would be easy to determine the answers to those and other questions about our economy. But it’s impossible to predict the future. If you’re a grocery retailer hoping to entice consumers to increase the size of the basket at the checkout this summer, statistics tell an interesting beer story with two very different main characters — the cautious consumer and the affordable-luxury-seeking consumer.

The Cautious Consumer

For anyone in retail, consumer confidence remains a critical issue. Consumers today are cautious, and with good reason. More than 3.6 million jobs have been lost since the recession started, and more than half a million people have become unemployed just since January. The stock market has not only declined significantly since the crash in September, it also has exhibited extreme volatility in the months that have followed. And the housing market looks like it has a long way to go before it regains full health.

Nielsen’s research shows that with consumer confidence at its lowest level in years, consumers’ wallets seem to be as frozen shut as the credit markets. They’re just not letting go of their money like they used to.

The impact of the cautious consumer can be seen across the beverage alcohol sector.

>> Continue Reading At ProgressiveGrocer.com

Even though some analysts predict that the U.S. economy may have hit bottom and are cautiously optimistic, the changes we have seen in consumer behavior are likely to persist for the foreseeable future.  Here are some ways grocery retailers and CPG manufacturers can leverage these trends:

• Stay in the game: Evaluate new formats and locations and focus on innovation and differentiation. Maintain marketing and ad spending: history has shown us that companies that continue marketing in downturns generally perform better when conditions improve.

• Communicate: Listen and talk to your consumers. Engage them – they want to be heard and looking for help.

• Articulate your value: Understand your value proposition and articulate that in ways that are meaningful to consumers.  Create value and deliver on an aspiration.

• Reach consumers where they live: The renewed trend of “nesting” creates opportunities to market and position products that can comfort, enliven and enhance the home entertainment and dining experience.

• Expand store brands: Consumers have shown an increasing willingness to embrace private label products, and now is the time to explore ways to enhance PL offerings to build brand loyalty.

“Today, perhaps more than ever before, retailers and CPG companies that understand consumers, product categories and channel activity at an increasingly granular level will be in a better position to deliver new solutions and drive success,” said Todd Hale, Senior Vice President, Consumer & Shopper Insights at Nielsen.

Read the full article about insights and opportunities to grocers and CPG companies in Progressive Grocer.

A troubled economy doesn’t necessarily mean declining wine sales, Danny Brager, vice president, beverage alcohol, Nielsen, writes in a recent Progressive Grocer column. 

Brager cites Nielsen research showing that, while almost 50% of consumers have reduced their overall spending, wine sales remain healthy.

Growth of premium wines has declined slightly, but the category remains strong overall — perhaps because consumers tend to view wine as an affordable luxury, Brager notes. 

If the current trend continues, he concludes, wine may emerge as a ”recession-resistant” category.