Nike remains the No. 1 brand for teens when it comes to clothing (31%) and footwear (60%), according to Piper Sandler’s 44th semi-annual Gen Z survey. Lululemon, Converse, Crocs and Hey Dude also gained traction.
The survey of 14,500 American teens found that in the apparel category, athletics continue to dominate, with Nike remaining strong and Lululemon reaching new heights. Vans dropped out of the Top 10 Favorite Clothing Brands. The activewear trend may have peaked with 44% of high-income teens preferring “athletic” clothing brands, unchanged from its spring 2022 survey.
In the footwear category, Nike remains in the lead and Converse has gained market share at the expense of Adidas and Vans. Both Crocs and Hey Dude moved up the rankings, but Dr. Martens continued to weaken.
Piper Sandler’s fall survey indicates teen spending is solid, up 3% year-on-year. Women lead the growth in spending (clothing up 10%, footwear up 7%).
Among other categories, beauty (cosmetics, skincare, fragrances) grew 20% year-over-year, led by cosmetics (+28%). Makeup continues its upward trend with elf the dominant brand at #1 for middle and upper income consumers.
Fragrance was also resilient, with category spend up +21% year-over-year. Less than two-thirds of teenage girls said they use fragrance daily (Bath & Body Works is a strong leader).
In fashion, Coach has remained the No. 1 handbag brand, with its lead over number two brand Michael Kors growing since its spring 2022 survey.
Fashion continues to evolve, with leggings remaining strong, but interest in jeans and baggy/saggy pants continues to wane.
Food remained the top spending category for men, and clothing remained top for women, with a 30% wallet share among high-income women reaching the highest levels since 2012.
Teen favorite restaurants remained Chick-fil-A and Starbucks.
“GenZ is known to be a conscious generation, and teens this fall cited the environment as their top concern. Fifty-three percent of consumers consider their carbon footprint when making purchasing decisions.
The Russian-Ukrainian war was the top concern in Spring 2022, but did not make the Fall 2022 Top 10. Abortion moved to the second highest concern, followed by racial equality, inflation and gasoline prices.
“TikTok has widened its lead over Snapchat as teens’ favorite app, with Instagram remaining third; however, Instagram continues to dominate monthly usage. On average, teens spend 4.4 hours on social media.
Amazon remains the No. 1 online shopping site, but Shein has further strengthened its No. 2 position,” said Edward Yruma, senior research analyst.
Key results from the fall 2022 survey:
- 39% of teens are in part-time work, stable from last spring, and up from 38% in fall 2021;
- Women led the increase in spending, with all women spending +10% YoY, led by clothing +10% and footwear +7%;
- Teenagers devote 7% of their shopping time to flea markets; 47% bought and 58% sold used;
- Changes in buy channels reflected more buys on discount channels (13%, +480 bps Y/Y) and fewer off-prices (8%, -350 bps Y/Y);
- The core beauty portfolio (cosmetics, skincare, fragrances) was $264/yr, up 20% YoY and led by Cosmetics (+28% YoY);
- Daily makeup wearers are now at 41% (up from 33% last year), including 50% of high-income teens who wear makeup daily;
- Weekly usage of VR devices increased to 14% from 17% last spring. Twenty-six percent of teens own a virtual reality device, according to Spring;
- Video games make up 12% of teen wallets, up from 14% last year. Thirty percent plan to buy a NextGen console within two years;
- Crocs jumped from 6th favorite shoe brand to 5th, while Hey Dude is ranked No. 7, up from 9th last spring;
- Converse gained 200 basis points from Mindshare, retaining the No. 2 ranking, and Under Armor dropped out of the Top 10;
- elf maintained its position as the #1 cosmetics brand, gaining 500 basis points of Y/Y share at 16% of teenage girls;
- Ulta remained the No. 1 favorite beauty destination with a 42% mind share. It also held the most Beauty Loyalty membership with 62% of teenage female members;
- Chick-Fil-A remained the No. 1 restaurant with a market share of 18% (-200 bps Y/Y), followed by Starbucks at 17% (+600 bps Y/Y) and Chipotle at 13% ( +300 bps Y/Y). );
- Teens plan to eat less plant-based meat, and of the 14% of teens who eat plant-based meat, 23% plan to eat less, up from 17% in fall 2021;
- Teenagers reported the highest intentions to eat more or the same amount of Nature Valley (GIS) and Clif (MDLZ). Goldfish (CPB) remained the favorite snack brand for teenagers;
- Teenagers spend 32% of their daily video consumption on Netflix (+200 bps compared to spring) and 29% on YouTube (-200 bps compared to spring);
- The iPhone is teens’ favorite method of interacting with customer service. Texting/SMS (18%) had the highest multi-year gains;
- 87% of teens own an iPhone and 88% expect an iPhone to be their next phone; and
- Thirty-one percent of teens own an Apple Watch.
This year’s Fall 2022 survey was conducted from August 12 to September 23. Piper Sandler received the most responses from the Southern US region at 41%, followed by the Midwest at 32%, the West at 20%, and the Northeast at 7%. percent.
Photo courtesy of Nike/Converse