Diving overview:
- According to Piper Sandler’s 46th Semi-Annual Report, “Taking Stock With Teens,” the top brands aimed at teens, such as cosmetics, apparel, footwear, and restaurants, have remained the same, but there has been some change among the bottom brands. It is said that it will be done.
- Elf Beauty remains the top cosmetics brand for female consumers, up 13 points year-over-year to 29%. Nike remains the top brand in both apparel and footwear, and Chick-fil-A remains the top-ranked restaurant among this age group. Meanwhile, New Balance surpassed Vans to become the fourth most popular shoe brand, while Sephora overtook Ulta to become the top beauty brand.
- Teens’ self-reported spending fell 1% year over year to $2,316, marking the first decline since before the pandemic. The average amount spent by male teenagers increased by 11% compared to the previous year, while the average amount spent by female teenagers decreased by 8% compared to the previous year.
Dive Insight:
As Gen Z’s purchasing power continues to grow, understanding where and how they spend their money is paramount for marketers. Piper Sandler’s semi-annual study evaluated the cohort’s top brands along with changing spending habits. While men’s spending is increasing and women’s spending is decreasing, some brands have been able to build a loyal position among consumers, and Elf has made significant profits.
The study also measured how teens spend their time on mobile and digital channels. TikTok improved by 80 bps compared to Spring 2023 and remains the most popular social platform among teenagers (38%), followed by Snap (28%) and Instagram (23%). did. When measuring how teens spend their daily video consumption, YouTube (29.1%) increased by 100bps compared to spring 2023, while Netflix (28.7%) decreased by 220bps over the same period. Spotify, on the other hand, saw modest increases in usage (up 68% to 70%) and subscription/payment rates (up 44% to 46%).
Since last fall, Gen Z consumers have started favoring off-price and online-only retailers, up 545 bps and 121 bps year-over-year, respectively. The biggest year-over-year decline was in discount retail, which fell 440 basis points. More than half of respondents (55%) said Amazon is their favorite e-commerce site, followed by Shein, Nike, Goat, and Temu.
Despite the decline in female consumer spending, the Core Beauty Wallet, which consists of cosmetics, skin care, and fragrances, increased 23% year-over-year to $324. Cosmetics accounted for $127 in beauty spending, the highest level since 2019. Sephora has surpassed Ulta as the favorite beauty shopping destination. Additionally, Sephora’s loyalty membership rate was 67%, higher than his 60% at Ulta. In the footwear category, New Balance gained about 200bps of mindshare YoY, while Vans lost about 350bps of mindshare YoY, while OnRunning and Hoka One One are the preferred activities of high-income teens. Outperformed the index as a shoe brand.
Inflation is a top concern for many young consumers, and worsening economic hardship among this age group may be fueling weak spending, Piper Sandler says. It is said that there is.
“Our research shows early signs that spending among teenagers is slowing. Inflation reached the highest mindshare on political and social issues after environmental issues,” says Piper Sandler. Edward Yurma, senior research analyst at the company, said in a press release.
The survey was conducted from Sept. 4 to Sept. 27 and included responses from 9,193 U.S.-based teens.
