Since the project began in 2001, Piper Jaffray has surveyed more than 155,000 teens and collected nearly 40 million data points on teen spending in fashion, beauty and personal care, digital media, food, gaming and entertainment.
“For the first time in years, we’ve seen Nike share moderate as a preferred brand. Offsetting this weakness, we’ve seen an unexpected rise in trends like streetwear with Vans and Supreme gaining momentum. In addition, other brands such as adidas, Puma and New Balance has been capturing more mindshare as teens gravitate towards that 1990s retro look,” said Erinn Murphy, Piper Jaffray senior research analyst.
Fall 2017 key findings
Overall spending behavior
Overall teen spending moved down 4.4 percent year-over-year, while parent contribution to teen spend is 67 percent just below the long-term average of 68 percent.
Wallet shifts in fall 2017 include slight downtick for video games, slight uptick for clothing, and moderate downtick for food.
Food ticked down from 24 percent in spring 2017 to 22 percent in fall 2017, but remains larger than clothing at 20 percent.
Nike, Ralph Lauren, Steve Madden, UGG (Deckers), Fossil and Michael Kors saw the largest declines among major brands.
Technology spending & behavior
Snapchat is the preferred social media platform for 47 percent of teens using the platform – up 12 percent year-over-year.
A majority, 82 percent, of teens expect their next phone to be an iPhone, which is up from 81 percent in spring 2017, and more importantly, the highest we have ever seen in our survey.
Teens who expect more than 50 percent of their future video games to be digitally downloaded increased to 50 percent from 45 percent in spring 2017 and 37 percent from two years ago.
Streaming continues to gain teen video share as preference for linear TV declined 2 percent since last fall.
Only 35 percent of teens listen to Pandora radio versus 49 percent last year as on-demand services such as Spotify, YouTube and Apple Music continue to gain share.
Nearly a quarter (23 percent) of teens prefer to shop specialty retailers, which is down 3 percent year-over-year, while pure-play e-com tied its spring 2017 peak at 17 percent – up 2 percent year-over-year.
Teens increasingly prefer Amazon as their favorite website at 49 percent share – up 9 percent year-over-year.