Different is the New Cool, According to Piper Jaffray Survey of 7,200 Teens
October 08 2014 - 10:00AM
Business Wire
Piper Jaffray (NYSE: PJC) has completed its 28th semi-annual
Taking Stock With Teens market research project, which indicates
increased spending across categories despite decreased optimism
about the economy.
“Our fall 2014 survey results indicate teens continue to
diversify their tastes through discovery of emerging brands and
multi-brand experimentation, even as their views of the economy
worsen,” said Steph Wissink, co-director of research and senior
research analyst at Piper Jaffray. “We also observe trends that
indicate teens use social media, mainly Instagram, to create their
own unique personal brands and seek peer affirmation. Millennials
continue to be early adopters of change who use technology to
engage with brands ‘on demand’ on their own time.”
Key findings from the survey in fashion, beauty and personal
care, digital media, food, gaming and entertainment include the
following:
- Spending rebounds as teen employment
figures improved modestly and parent contribution returned to
historical levels in the 70% range. Yet teen perception of the
economic climate worsened, with roughly 73% seeing the economy as
staying the same or getting worse, up from just 57% a year
ago.
- Male spending increased in the spring
while females turned this fall and contributed to gains year over
year and sequentially in total spending. This is the first period
of improved spending, specifically on fashion-related goods, in
nearly two years.
- Fashion spending improves with a
mid/high single digit increase in apparel spending. Beauty spending
increased, mainly on color cosmetics, while spending declined in
accessories.
- Shopping frequency stabilizes after
several years of declines but remains below historical averages,
suggesting capacity rationalization is needed as teens continue to
shop “on demand.” While teens still prefer to shop in-store for
their fashion needs, they are increasingly shopping online and via
mobile, preferring sites associated with stores versus pure play
e-commerce sites.
- Teen closets are diverse, just like
their social circles and lifestyles. The millennial thirst for
adventure is clear with experimentation, discovery and
individuality being the new cool. A key fashion trend among teens
is the spirit of choice – demand for action sports, fast fashion,
refined classics and fashion athletic brands stabilized or
increased. Demand for legacy brands stabilizes – AE, A&F,
Hollister and Aero – but is still significantly below peak
mindshare and current capacity.
- This generation of teens are creating
their own “stories” through purchases, experiences and activities
in order to cultivate their personal brands, primarily in domains
like social media and friend networks. We note that teen interest
in food and electronics, at the expense of fashion goods, continues
to be a strong underlying theme in our multi-year data series.
- Friends and the Internet dominate teen
influences and combine in social media environments. Instagram and
Twitter are the two most used social media sites, implying teens
are increasingly visual and sound bite communicators.
- Percentage of teens asking for a GoPro
as a gift more than doubled sequentially and more than quadrupled
year-over-year.
- Apple remains the top consumer
electronics brand for teens. 67% own iPhones, up 6% from spring
2014. 73% of teens expect their next phone to be an iPhone.
- A key food trend amongst teens is the
increasing consumption of organic food, especially among
upper-income teens.
- Mobile gaming interest declines to 80%,
but 22% of those that play spend money on virtual goods or extra
levels, up 4% from spring 2014.
For an infographic and more information regarding the survey,
please visit www.piperjaffray.com/teens.
About the SurveyThe Taking Stock With Teens survey is a
semi-annual research project comprised of gathering input from
approximately 7,200 teens with an average age of 16.0 years. Teen
spending patterns, fashion trends, and brand and media preferences
were assessed through visits to a geographically diverse subset of
high schools across 11 states and 14 high schools, as well as an
online survey that included 41 states. The survey is conducted in
partnership with DECA, an international association of high school
students. The survey was conducted from August 25 – September 30,
2014.
About Piper JaffrayPiper Jaffray Companies (NYSE: PJC) is an
investment bank and asset management firm headquartered in
Minneapolis with offices across the U.S. and in London and Zurich.
Securities brokerage and investment banking services are offered in
the United States through Piper Jaffray & Co., member NYSE and
SIPC, and in Europe through Piper Jaffray Ltd., authorized and
regulated by the Financial Conduct Authority. Asset management
products and services are offered through three separate investment
advisory affiliates registered with the U.S. Securities and
Exchange Commission: Advisory Research Inc., Piper Jaffray
Investment Management LLC and PJC Capital Partners LLC.
www.piperjaffray.com
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© 2014 Piper Jaffray Companies. 800 Nicollet Mall, Minneapolis,
Minnesota 55402-7020.
Piper Jaffray CompaniesPamela Steensland,
612-303-8184analystmediarelations@pjc.com
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