Spending by adolescents is starting to accelerate after plunging into 2020 during the pandemic.
Overall teen spending grew 6% year-over-year, according to Piper Sandler Cos. ‘ 42sd biannual “Taking stock with adolescents”” survey, which highlights the spending trends and brand preferences of 10,000 teens nationwide with an average age of 15.8 years. Clothing has been the highest priority (22%) in the wallet of teens since fall 2014, dislodged food (21%).
âWe have seen a disproportionate increase in spending by high-income women, with total spending on fashion up 14% year-over-year. ” said Erinn Murphy, senior research analyst at Piper Sandler. “We believe apparel restocking will continue through 2022 as consumers continue to restock.”
In apparel, athletics is still the dominant trend with Nike and lululemon reaching new heights, added Murphy. Nike also reigns supreme in footwear, with Converse and Crocs gaining shares while Vans slipped. Michael Kors has reclaimed its No.1 spot as the preferred handbag brand.
In a fall poll, conducted August 17 through September 16, 96% of teens returned to school either in a hybrid format or in person, while 4% remained entirely virtual. It received the most responses from the South with 47% of the mix and 10% of the responses from the Northeast, which is similar to the spring 2021 and fall 2020 polls.
The survey found that reselling is now second nature to teens. Sixty-two percent sold used and 51% bought used.
Although the teens have largely returned to school, they also remain connected, estimating that they spend four hours a day on social media. Snapchat is the preferred social media platform (35% share), followed by TikTok (30%) and Instagram (22%, down year over year).
âAlthough Amazon remains the # 1 website, it has seen its opinion decline year over year as female-centric websites like Shein are on the rise,â Murphy said.
Here are other key findings from the fall survey:
- Chick-Fil-A is the # 1 restaurant for all teens. Starbucks remained # 2, with Chipotle # 3.
- Eighty-seven percent of teens own an iPhone, and 88% expect an iPhone to be their next phone. Apple is the No. 1 watch brand for the first time.
- Fifty-two percent of teens cite Amazon as their favorite e-com site (down 200 basis points year over year). Shein took second, with a 9% share and a 400 basis point increase year over year.
- Teen “self-reported” spending improved to $ 2,274, up 5% sequentially and 6% year over year (parental contribution was 61%).
- Cash is still the primary form of payment for teens, followed by Apple Pay.
- Paypal’s Venmo again ranked # 1 among teens for payment apps, and its âPay in 4â is the best deal for teens to buy now, pay later.
- Teens spend 32% of their daily video consumption on Netflix followed by YouTube (30%).
- Nine percent of teens say they’ve traded cryptocurrency; 78% of these adolescents are men.
- Crocs, PacSun, Hey Dude, Zara, Shein and Gymshark are all fashion brands that are gaining share with teens, while Under Armor & Vans have had mixed results.
- Ulta ranked as the # 1 teen beauty destination with a 46% share, followed by Sephora with a 21% share.
- Spending on handbags improved to $ 96, up 10% year over year and 3% sequentially.
- Favorite teenage celebrity is Adam Sandler and favorite influencer is Emma Chamberlain (dislodging David Dobrik).