MINNEAPOLIS--(BUSINESS WIRE)--Piper Jaffray (NYSE: PJC) has completed its 27th semi-annual Taking Stock With Teens market research project, which signals a potential point of stability, with spending contracting by just 1% from Fall 2013, compared to sequential declines in the mid-single digits previously.
“Over the 13-year history of our survey, we have observed notable changes in the brands teens aspire to own and wear, the influences that direct what they buy, and how teens are consuming, interacting with and sharing the brands they love,” said Steph Wissink, co-director of investment research and senior research analyst at Piper Jaffray. “The universal truths about teens remain the same—they continue to seek peer affirmation, their spending is almost entirely discretionary, and they are early adopters of change. What’s different about this generation of teens versus prior is that they are non-conformists, they seek experiences over products, and they align with brands that are practical yet cool.”
Key findings from the survey in fashion, beauty and personal care, restaurants, digital media, gaming, and wireless communication include the following:
- Teen males indicated they were spending more, up 4% from Fall 2013, which has historically signaled inflection in broader spending
- For the first time in our survey history, food exceeded clothing as a percentage of the teen wallet. Electronics also gained in share, while furniture and fashion ceded modest share.
- Declines in the fashion category were most severe in accessories– down double-digits for a second cycle in a row
- Top clothing brands (continued to) include Nike, Action Sports, Forever 21, American Eagle, Polo Ralph Lauren and Hollister
- 17% of teens expressed interest in an Apple iWatch, up 12% from Fall 2013, which we believe is an indication of consumer appetite
- Instagram ranked as the most important social network, exceeding Twitter and Facebook for the first time in survey history
- At home, cable subscriptions are becoming less essential for teens, while online streaming is more critical. Out of home, IMAX continues growing share among teens.
- Music/radio listenership has grown for Pandora and local radio, largely at the cost of MP3s and CDs.
- 85% of teen gamers play mobile games
For an infographic and more information regarding the survey, please visit www.piperjaffray.com/teens.
About the Survey
The Taking Stock With Teens survey is a semi-annual research project comprised of gathering input from approximately 7,500 teens with an average age of 16.4 years. Teen spending patterns, fashion trends, and brand and media preferences were assessed through visits to a geographically diverse subset of high schools across 12 states, 14 schools and 18 classrooms, as well as an online survey that included 48 states. The survey is conducted in partnership with DECA, an international association of high school students. The spring survey was conducted from February 24 – April 1, 2014.
About Piper Jaffray
Piper 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
Piper Jaffray does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decisions. This report should be read in conjunction with important disclosure information, including an attestation under Regulation Analyst Certification, found at: www.piperjaffray.com/researchdisclosures.
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