Key Note’s research shows that ABC1s are more likely to buy food productsfrom retailers’ premium own-label ranges than from the economy ranges.However, a substantial number of consumers — many of whom are just aslikely to be in the AB as in the C1 social group — purchase cheaper items.At the top end of the clothing market, there are signs of a backlash againstconspicuous affluence and a move towards the middle market is evident; anumber of designer labels have now introduced budget ranges. This trend isechoed by a converging trend at the budget end of the market, withhigh-street stores and supermarkets introducing more upmarket ranges.

Almost nine out of ten ABs and nearly eight in ten C1s are homeowners and,as such, are particularly important to the market for home-related products,which includes furniture, furnishings and homeware.Consumers in the ABC1 group are at the forefront of the move towardsindependent travel and Key Note’s original research shows that they arenearly twice as likely as C2DEs to book both accommodation and travelthemselves.

In addition, findings from Key Note’s research indicate that, over the past 2years (to March 2004), ABC1 consumers have not suffered particularly fromfinancial problems. In fact, they are nearly twice as likely to claim that theirfinancial situation is better now compared with 2 years ago, than to say it isworse. ABC1 consumers are also highly unlikely to express fears relating tothe prospect of a fall in house prices.


Table of contents:

Executive Summary
1. Introduction
OVERVIEW
Definitions
The Social Grade System
National Statistics, Socio-Economic Classification
2. Strategic Overview
SOCIO-ECONOMIC BACKGROUND
Table 1: The UK Adult Population by Socio-Economic Group
(% of adults), 1999-2003
Figure 1: The UK Adult Population by Socio-Economic Group
(% of adults), 1999-2003
Table 2: Profile of ABC1 Adults by Socio-Economic Group
(% of respondents), 2004
Household Tenure
Table 3: Household Tenure (% of respondents), 2004
Figure 2: Household Tenure (% of respondents), 2004
Car Ownership
Table 4: Car Ownership (% of respondents), 2003
Figure 3: Car Ownership (% of respondents), 2003
Internet Access and Home Shopping
Table 5: Households with PC and Internet Access at Home (%), 2002 and 2003
Table 6: Consumer Penetration of Home-Shopping Activities
(% of respondents), 2003
Figure 4: Consumer Penetration of Home-Shopping Activities
(% of respondents), 2003
HOUSEHOLD EXPENDITURE
Table 7: Average Weekly Household Expenditure by Socio-Economic Classification
of Household Reference Person (£), 2002/2003
Table 8: Average Weekly Household Expenditure by Socio-Economic Classification
of Household Reference Person (%), 2002/2003
3. Food
BACKGROUND
CONSUMER TRENDS
Influences on Eating Habits
Table 9: Factors Influencing Eating Habits by Socio-Economic Group
(% of respondents), 2003
Figure 5: Factors Influencing Eating Habits by Socio-Economic Group
(% of respondents), 2003
Organic Foods
Table 10: Attitudes and Purchasing Habits in Organic Foods
by Socio-Economic Group (% of respondents), 2003
Own-Label Foods
Table 11: Attitudes Towards Own-Label Products by Socio-Economic Group
(% of respondents), 2003
MARKETING AND SUPPLIER ACTIVITY
Company Activity
Marks & Spencer
Safeway
Somerfield
Sainsbury’s
Tesco
Waitrose
ADVERTISING EXPENDITURE
Table 12: Main Media Advertising Expenditure on Selected Supermarket
and Grocery Chains (£000), Years Ending December 2002 and 2003
Table 13: Main Media Advertising Expenditure on Selected Own-Label Ranges
by Supermarket and Grocery Chains (£000), Year Ending December 2003
4. Home
BACKGROUND
CONSUMER TRENDS
Table 14: Penetration of Selected DIY Activities by Socio-Economic Group
(% of respondents), 2004
Table 15: Penetration of Selected DIY Activities by Socio-Economic Group
(% of ABC1 adults), 2001 and 2004
MARKETING AND SUPPLIER ACTIVITY
Company Activity
Marks & Spencer
Maytag
Other Activity
5. Clothes
BACKGROUND
CONSUMER TRENDS
Table 16: Penetration of Selected Clothing and Footwear Brands
by Socio-Economic Group (% of respondents), 2003
Figure 6: Penetration of Selected Clothing and Footwear Brands
by Socio-Economic Group (% of respondents), 2003
Table 17: Penetration of Selected Clothing and Footwear Brands
by Socio-Economic Group (% of ABC1 adults), 2001 and 2003
MARKETING AND SUPPLIER ACTIVITY
Company Activity
Marks & Spencer
Tesco
ASDA
Clarks
Other Activity
ADVERTISING EXPENDITURE
Table 18: Main Media Advertising Expenditure on Selected Unisex, Women’s
and Men’s Fashion (£000), Year Ending December 2003
6. Leisure and Travel
BACKGROUND
CONSUMER TRENDS
Leisure Activities
Table 19: Penetration of Leisure Activities by Socio-Economic Group
(% of respondents), 2003
Table 20: The Most Popular Evening and Weekend Leisure Activities
by Socio-Economic Group (% of respondents), 2003
Holidays
Table 21: Factors Influencing Holiday Choices by Socio-Economic Group
(% of respondents), 2003
Figure 7: Factors Influencing Holiday Choices by Socio-Economic Group
(% of respondents), 2003
MARKETING AND SUPPLIER ACTIVITY
Media
Travel
Airlines
Cruises
Coaches
Other Activities
7. An International Perspective
LUXURY GOODS
Gucci and LMVH
8. PEST Analysis
POLITICAL FACTORS
Council Tax
Legal Aid
Education
Childcare
ECONOMIC FACTORS
SOCIAL FACTORS
TECHNOLOGICAL FACTORS
9. Consumer Dynamics
RESEARCH SUMMARY
Table 22: Summary of Attitudes Towards Finance and Expenditure
by Socio-Economic Group (% of respondents), 2004
FINANCIAL SITUATION
Table 23: Comparison of Financial Situation (% of respondents), 2004
FOOD
Table 24: Purchasing of Supermarkets’ Own-Brand Luxury and Economy Ranges
(% of respondents), 2004
HOME
Table 25: Habits and Attitudes in Home Decorating (% of respondents), 2004
Table 26: Concerns Relating to Falling House Prices (% of respondents), 2004
CLOTHES
Table 27: Attitudes Towards Buying Clothes from Discount Shops
(% of respondents), 2004
Table 28: Attitudes Towards Designer Shops and Labels (% of respondents), 2004
LEISURE AND TRAVEL
Table 29: Attitudes Towards Holiday Destinations (% of respondents), 2004
Table 30: Attitudes Towards Booking Holiday Travel and Accommodation
(% of respondents), 2004
10. Company Profiles
OVERVIEW
BURBERRY LTD
Corporate Strategy
Profitability
Table 31: Financial Results for Burberry Ltd (£000 and %),
Years Ending 31st March 2001, 2002 and 2003
Recent and Future Developments
JOHN LEWIS PARTNERSHIP PLC
Corporate Strategy
Profitability
Table 32: Financial Results for John Lewis Partnership PLC (£000 and %),
Years Ending 27th January 2001, 26th January 2002 and 25th January 2003
Recent and Future Developments
MARKS AND SPENCER PLC
Corporate Strategy
Profitability
Table 33: Financial Results for Marks and Spencer PLC (£000 and %),
Years Ending 31st March 2001, 30th March 2002 and 29th March 2003
Recent and Future Developments
J SAINSBURY PLC
Corporate Strategy
Profitability
Table 34: Financial Results for J Sainsbury PLC (£000 and %),
Years Ending 31st March 2001, 30th March 2002 and 29th March 2003
Recent and Future Developments
TESCO PLC
Corporate Strategy
Profitability
Table 35: Financial Results for Tesco PLC (£000 and %), Years Ending
24th February 2001, 23rd February 2002 and 22nd February 2003
Recent and Future Developments
11. The Future
ECONOMIC TRENDS
FOOD
HOME
CLOTHES
LEISURE AND TRAVEL
12. Further Sources
Associations
Publications
General Sources
Government Publications
Other Sources
Bonnier Information Sources
Understanding TGI Data
Number, Profile, Penetration
Social Grade
Standard Region
Key Note Research
The Key Note Range of Reports