In a constantly changing marketplace, understanding the preferences and spending habits of the younger generation is crucial for brands seeking to capture the attention and loyalty of Gen Z consumers. Recent research conducted by Piper Sandler has shed light on the top brands and trends among teenagers, revealing interesting insights into the evolving landscape of teen consumer preferences. This article explores the findings of the study, with a particular focus on three key brands: E.l.f, Nike, and Chick-fil-A.
E.l.f: The Rising Star in the Cosmetics Industry
When it comes to cosmetics, E.l.f has emerged as the top brand among teenage consumers, experiencing a significant jump in popularity. According to the Piper Sandler survey, E.l.f’s market share among women consumers has increased by 13% year-over-year, reaching an impressive 29%. This growth can be attributed to the brand’s ability to resonate with Gen Z’s values and preferences. E.l.f’s commitment to cruelty-free and vegan products aligns with the increasing demand for ethical and sustainable beauty options.
In addition to its ethical stance, E.l.f has also leveraged social media platforms effectively, particularly TikTok, to connect with its target audience. The brand’s presence on TikTok has allowed it to engage with teenagers through creative and relatable content, further solidifying its position as a top cosmetics brand among Gen Z consumers.
Nike: A Leader in Apparel and Footwear
Nike continues to dominate the apparel and footwear categories among teenagers, maintaining its status as the go-to brand for this age group. The Piper Sandler survey revealed that Nike remains the top brand in both apparel and footwear, showcasing its enduring popularity and influence.
Nike’s success can be attributed to its ability to tap into the cultural zeitgeist and stay ahead of fashion trends. The brand’s collaborations with celebrities and influencers, such as Travis Scott and Virgil Abloh, have resonated with Gen Z consumers, who value authenticity and individuality. Nike’s innovative designs and commitment to sustainability have also played a role in its continued success, as young consumers increasingly prioritize environmentally friendly options.
Chick-fil-A: A Favorite Among Teenagers
In the realm of fast food, Chick-fil-A has solidified its position as the top-ranked restaurant among teenagers. The brand’s commitment to exceptional customer service and quality food has earned it a loyal following among Gen Z consumers.
Chick-fil-A’s success can be attributed to its ability to create experiences that go beyond just a meal. The brand has cultivated a strong sense of community and connection through initiatives such as the Chick-fil-A Leader Academy, which provides leadership development opportunities for young people. These efforts have resonated with teenagers, who value brands that align with their personal values and contribute positively to society.
Evolving Spending Habits Among Teenagers
While the top brands among teenagers have remained relatively stable, the Piper Sandler survey highlights some interesting trends in teen spending habits. Teen self-reported spending has decreased by 1% year-over-year, with an average spending of $2,316. This marks the first observed decrease since before the pandemic, indicating a potential shift in consumer behavior.
Interestingly, while spending by male teenagers has increased by 11% year-over-year, spending by female teenagers has seen a decline of 8%. This discrepancy in spending patterns suggests that there may be underlying factors influencing the purchasing decisions of different genders within this age group.
The Digital Landscape: Where Teens Spend Their Time
The Piper Sandler survey also delves into the digital landscape and how teenagers spend their time on various platforms. TikTok remains the favorite social platform among teenagers, with 38% of respondents choosing it as their preferred platform. Snap and Instagram follow closely behind, with 28% and 23% of respondents favoring these platforms, respectively.
When it comes to video consumption, YouTube has seen a significant gain of 100 bps year-over-year, with 29.1% of teenagers spending their daily video consumption on the platform. Netflix, on the other hand, has experienced a decrease of 220 bps over the same period. These shifts in video consumption habits highlight the dynamic nature of the digital landscape and the importance of staying attuned to the preferences of teenage consumers.
Changing Preferences in Retail
The Piper Sandler survey reveals shifting preferences in retail among teenagers. Over the past year, Gen Z consumers have shown a preference for off-price and online-only retailers. Off-price retailers have seen a significant increase of 545 bps year-over-year, while online-only retailers have experienced a growth of 121 bps.
Moreover, the survey highlights Amazon as the favorite e-commerce site among teenagers, with 55% of respondents choosing it as their preferred platform. Shein, Nike, Goat, and Temu also rank high among Gen Z consumers. These preferences reflect the growing influence of e-commerce and the increasing importance of online shopping experiences for teenage consumers.
Beauty and Fashion Trends Among Teenagers
The Piper Sandler survey provides valuable insights into the beauty and fashion trends favored by Gen Z consumers. Despite the overall decrease in spending among female teenagers, the “core beauty wallet,” consisting of cosmetics, skincare, and fragrance, has seen a 23% increase year-over-year, reaching $324.
Cosmetics account for the highest percentage of beauty spend at $127, the highest level since 2019. Sephora has surpassed Ulta as the preferred beauty shopping destination among teenagers, with a loyalty membership of 67% compared to Ulta’s 60%. These findings highlight the enduring appeal of cosmetics and the shifting preferences in the beauty retail landscape.
In the footwear category, New Balance has gained approximately 200 bps of mindshare year-over-year, while Vans has experienced a decline of about 350 bps. Athletic footwear brands such as On Running and Hoka One One have also gained prominence among upper-income teenagers. These trends indicate the importance of staying attuned to changing fashion preferences and leveraging collaborations and innovative designs to capture the attention of teenage consumers.
Economic Factors Influencing Teen Spending
The Piper Sandler survey suggests that the recent decrease in teen spending may be influenced by growing economic concerns among this age group. The rising inflation rate has become a top-of-mind issue for many young consumers, second only to the environment in terms of political and social concerns.
The impact of economic factors on teen spending underscores the importance of understanding the broader socio-economic landscape and its influence on consumer behavior. Brands that can navigate these challenges and adapt their strategies accordingly will be well-positioned to capture the attention and loyalty of Gen Z consumers.
See first source: Marketing Dive
FAQ
Q1: What are the top brands among teenagers, according to the Piper Sandler survey?
The Piper Sandler survey identifies E.l.f as the top cosmetics brand among teenagers, Nike as the leading brand in both apparel and footwear, and Chick-fil-A as the favorite fast-food restaurant among teenagers.
Q2: Why has E.l.f become popular among Gen Z consumers in the cosmetics industry?
E.l.f’s popularity among Gen Z consumers can be attributed to its commitment to cruelty-free and vegan products, aligning with the increasing demand for ethical and sustainable beauty options. The brand’s effective use of social media platforms, particularly TikTok, has also contributed to its popularity.
Q3: What factors have contributed to Nike’s dominance in the apparel and footwear categories among teenagers?
Nike’s continued success among teenagers can be attributed to its ability to tap into cultural trends, collaborate with celebrities and influencers, offer innovative designs, and commit to sustainability. These factors resonate with Gen Z consumers who value authenticity and environmentally friendly options.
Q4: Why is Chick-fil-A a favorite among teenagers in the fast-food industry?
Chick-fil-A’s success is attributed to its exceptional customer service, quality food, and efforts to create experiences that go beyond just a meal. Initiatives like the Chick-fil-A Leader Academy, which provides leadership development opportunities, have resonated with teenagers who value brands aligning with their values and contributing positively to society.
Q5: What are some trends in teen spending habits highlighted by the Piper Sandler survey?
The survey indicates a 1% decrease in teen self-reported spending year-over-year, marking the first observed decrease since before the pandemic. Interestingly, spending by male teenagers has increased by 11%, while spending by female teenagers has declined by 8%, suggesting gender-related factors influencing spending decisions.
Q6: What are the preferred digital platforms for teenagers according to the survey?
TikTok remains the favorite social platform among teenagers, with Snap and Instagram following closely. In video consumption, YouTube has seen a gain, while Netflix has experienced a decrease. These preferences reflect the dynamic nature of the digital landscape.
Q7: How have retail preferences changed among teenagers according to the Piper Sandler survey?
Teenagers have shown a preference for off-price and online-only retailers, with significant increases in both categories. Amazon is the preferred e-commerce site among teenagers, followed by Shein, Nike, Goat, and Temu.
Q8: What are the key trends in beauty and fashion among Gen Z consumers highlighted by the survey?
The “core beauty wallet,” which includes cosmetics, skincare, and fragrance, has seen a 23% increase year-over-year. Cosmetics spending is at its highest level since 2019. Sephora has surpassed Ulta as the preferred beauty shopping destination. In the footwear category, New Balance has gained mindshare, while Vans has experienced a decline. Athletic footwear brands like On Running and Hoka One One have also gained prominence among upper-income teenagers.
Q9: How are economic factors influencing teen spending, as indicated by the Piper Sandler survey?
Growing economic concerns, including rising inflation rates, have become top-of-mind issues for many young consumers, second only to environmental concerns. These economic factors have contributed to changes in teen spending habits, emphasizing the importance of understanding the broader socio-economic landscape for brands seeking to capture Gen Z consumers’ attention and loyalty.
Featured Image Credit: Aedrian; Unsplash – Thank you!
