5/1/2013
One in two affluent teens expect to spend more on fashion and brand merchandise in spring 2013 than they did last year, according to Piper Jaffray. Key teen spring fashion trends include a declining demand for fast fashion, stability among action sportswear, growth for fashion athletic wear, and the emergence of a refined classic or preppy aesthetic.
More than three in four affluent teen girls (79%) and boys (76%) shop online, totaling 18% of their spending. Seven in 10 affluent teens prefer to shop the website of their favorite store-based retailers, as opposed to general portals or discount sites. However, 70% of affluent teen girls and 55% of affluent teen boys shop at off-price stores, with 55% of girls and 42% of boys saying it’s popular to do so.
Friends are cited as the strongest influence over affluent teens’ purchasing decisions, followed by social media, primarily Facebook, Twitter, and Instagram. However, while Facebook still reigns as a key influencer, only 33% cite it as the most important, down from 42% six months ago.
More teens are eating organic foods than two years ago (42% vs. 33%). Teens are also more likely to eat at limited-service restaurants now than four years ago (57% vs. 43%). Quick-service chains (41%) remain their preferred dining option, followed by casual dining (36%) and fast casual options (15%). More specifically, for American cuisine, teens prefer the Cheesecake Factory; for Italian, Olive Garden; and for Mexican, Chipotle Mexican Grill.
More than nine in 10 teens (91%) expect to purchase a smartphone for their next wireless device, with 60% preferring to purchase an iPhone and 21% likely to buy an Android device. Teens prioritize unlimited data plans as the most important service plan feature, and identify Verizon and AT&T as having the best networks. Nearly half of teens (48%) currently own an iPhone, up from 40% six months ago. A similar percentage of teens (51%) own a tablet computer, with 68% of those owners having an iPad.
Meanwhile, streaming accounts for 46% of teen movie rentals, and the online music portal Pandora accounts for 22% of their preferred music sources.
Some 6% of teen spending goes to videogames, and 73% play videogames at least monthly. More than half (52%) intend to purchase a next-generation console. Nearly two in three (63%) buy used games, and 29% trade in old games to support new software and hardware purchases.
SOURCE: Piper Jaffray, Steph Wissink, Co-Director, Research and Senior Research Analyst, 800 Nicollet Mall, Minneapolis, MN 55402; 612-303-6000; stephanie.j.wissink@pjc.com; www.piperjaffray.com.
© 2013 Business Valuation Resources, LLC (BVR). May not be reproduced without written consent of publisher.