Teens spend on Nike and Lululemon despite concerns about U.S. economy
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Lululemon Athletica stores display athletic clothing.
Xaume Olleros | Bloomberg | Getty Images
A new study shows that teens spend more money and shift their buying habits while worrying about the economic outlook.
There are many brands that produce athletic clothing, such as Lululemon NikePiper Sandler released Wednesday’s “Taking Stock with Teens”, a biannual report that revealed how fashion-forward clothing is winning over more traditional labels.
Many teens say they’re either unsure of or uninterested in the so-called metaverse — the idea of buying goods through a virtual reality experience. Forever 21 is among the retailers that include Nike, PacSun and PacSun. Ralph LaurenAll of them have been trying out new technology.
Teenagers are also more comfortable with NFTs (or non-fungible tokens) than last fall. However, only a few have purchased them.
The survey found that they are more concerned about Russia’s war in Ukraine and less worried about the Covid-19 pandemic.
Biannual surveys have important implications for businesses trying to attract this group of customers. In these times of uncertainty, this is even more true.
Piper Sandler reported that teenagers will spend $2,367 each year on everything, from video games and fast food to sneakers and handbags to shoes and bags. That’s an approximate total amount of about $66 billion. This is a 9% increase over the reported spending in the spring 2021 survey and 4% more than what Piper Sandler published in its fall survey. In spring 2006, teens reported spending of $3,023.
Piper Sandler conducted surveys of 7,100 teens between Feb. 16 and March 22, 2018. According to the survey, 16.2 was the median age and $69,298 was the household’s average income. The teens were 39% and 33%, respectively.
There are increasing concerns about the economy
Although teen spending has improved steadily from a low point in fall 2020, many businesses are still pondering whether this could slow growth or whether they will see a decrease in consumer spending.
Piper Sandler reported that 71% of teens believe that the U.S. is becoming worse. This compares to 56% and 46% respectively last spring.
Teens were asked what political or social issues they care most about. The number one answer was Russia’s invasion Ukraine (13%). Environment was at 11% followed by racial inequality at 10% and gas prices at 10%. Inflation is at 4%.
Coronavirus was notably absent from the top 10 most important concerns for teens after it was ranked fourth in Piper Sandler’s survey last spring and fall.
Matt Egger, Piper Sandler’s consumer analyst, noted that Generation Z continues to be concerned about the environment. This bodes well in rental platforms like Rent the RunwayBusinesses for resale such as ThredUp The RealReal.
Nike, Amazon keep top spots
Nike was still the number one brand among teens. The No.1 favored brand of clothing among teenagers, which it holds for an amazing 11 consecutive years. According to the survey, it also increased its lead as the most preferred brand of footwear among Gen Z consumers, surpassing Converse and Adidas. VansNew Balance CrocsIn this order.
American EagleLululemon moved one spot up on the previous year’s list, but H&M remained second in the top-favorite clothing brand for teens. Fast-fashion retailer H&M rose to fourth from ninth a year earlier. Adidas was still in fifth.
The survey that was released Wednesday showed that 44% of teenagers’ favourite clothing brands were athletic brands. This is the highest level Piper Sandler has ever seen in this category. This is consistent with the wider shift in consumers’ preference for looser fitting clothing that can be worn around the home, which was evident during the pandemic. Even as teens return to school or work, many teenagers still incorporate brands from athletics into their closets.
Shein is a Chinese fashion e-commerce giant that has become a global phenomenon. reportedly weighing a funding round at a valuation of about $100 billionIt was ranked 7th for the most popular place to purchase clothes by teens, up from 6th in the Fall of 2021 and 8th last Spring.
According to the Piper Sandler survey females still spend more on clothes than males, and males average $51 less on footwear each year.
AmazonIt remained the number one website overall for online shopping with 53%, up from 52% in fall last year. Shein remains in second place but its share of teenage preference has dropped to 8%, from 9%. Lululemon, PacSun and Nike were also on the list. Princess PollyTo that end,
The metaverse, platforms like RobloxAccording to Decentraland 26% reported that they have a virtual reality device and only 5% use it every day. 40 percent of teens said they were either not or unsure about the metaverse.
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