Piper Jaffray Completes 20th Semi-Annual Fall 2010 Taking Stock With Teens Survey
07 October 2010 - 7:09AM
Business Wire
Piper Jaffray published its semi-annual, proprietary "Taking
Stock With Teens" survey, results of which indicate a clear bias
toward value brands and lower overall prices paid for fashion
products at all levels of household income.
“For upper-income households fashion budgets continue to decline
but sentiment is improving,” said Jeff Klinefelter, senior research
analyst at Piper Jaffray. “For average- income households, teen
fashion budgets remain relatively stable. In aggregate, we continue
to believe teens will spend for differentiated merchandise, but
significant discounting and an unstable employment environment
remain key themes in teen budgeting decisions.”
Key findings from the survey in fashion, beauty and personal
care, restaurants, digital media and video game categories include
the following:
- Results for upper-income teen
respondents reflect sequential stabilization with fashion budgets
remaining flat compared to the Spring 2010 survey, but down 14
percent year-over-year. Fashion budgets for average-income teens
were flat compared to spring 2010 results, and were up 0.6 percent
year-over-year. Sentiment indicators for both upper- and
average-income respondents point toward spending stabilization on
fashion categories versus increases or decreases in any one
area.
- Upper-income teens’ top preferred
brands continue to be in the Action Sports Brands category, which
showed a 13 percent share. Within this category, Nike and American
Eagle both picked up share. For average-income teens, Hollister
showed a big improvement in mindshare and American Eagle showed a
slight improvement. Aeropostale entered the top five preferred
brands for average-income teens for the first time since fall of
2008. Nike was also a standout for apparel among both upper- and
average-income respondents, suggesting the company’s marketing
campaigns, sponsorships of elite athletes, technical product
innovation, and fashion, are gaining ground with teens. The Action
Sports Brands category also includes Pacific Sunwear, Zumiez,
Volcom, Quiksilver, Hurley, Vans and Tilly’s.
- Beauty spending trends were mixed.
Upper-income teens showed a continuation of a negative spending
trend on both a sequential and year-over-year basis. Conversely,
average-income teens showed a healthy year-over-year increase in
beauty spending, which may signal a positive inflection point.
- In the restaurant category, while
specific rankings differed by income bracket, preferred brands
among teens included strong showings from perennial favorites MCD,
SBUX, and CMG, as well as DRI's Olive Garden. Notably, both
Chipotle and McDonald's eclipsed Starbucks as the most preferred
brand among upper- and average-income teens, respectively. This
move may be attributable to each company's respective blend of
premium food attributes and value-centric positioning.
- In digital media, 33 percent of
students surveyed expect to buy an iPhone in the next six months,
up from 22 percent one year ago; 21 percent indicated they
currently use DVD-by-mail with 29 percent indicating they will use
DVD-by-mail in two years. 27 percent of teens said they download
movies, surpassing DVD-by-mail for the first time ever, and 39
percent expect to download movies in two years. DVD rental from
retail stores is decreasing significantly in popularity, with 59
percent using stores today and 45 percent expecting to use stores
in two years.
- Interest in traditional video gaming
remains challenged among teens, and interest in digital game
content points to slow adoption trends. In particular, 81 percent
of teens indicated that they plan to spend less time playing games
in 2011—the highest percentage ever recorded in the Surveys, and 83
percent of teens plan to spend less money to play video games
during 2011—also the highest percentage ever recorded.
The "Taking Stock With Teens" survey is a research project
comprised of gathering input from approximately 6,000 students with
an average age of 16.3 years. Teen spending patterns, fashion
trends, and brand and media preferences were assessed through a
combination of geographically diverse high school visits with teens
in seven states and as well as a wider group of teens from 31
states through an online survey in partnership with DECA (an
international association of high school students).
About Piper Jaffray
Piper Jaffray Companies (NYSE: PJC) is a leading, international
investment bank and institutional securities firm, serving the
needs of corporations, private equity groups, public entities,
nonprofit clients and institutional investors. Founded in 1895,
Piper Jaffray provides a broad set of products and services,
including equity and debt capital markets products; public finance
services; financial advisory services; equity and fixed-income
institutional brokerage; equity research and fixed income
analytics; and asset management services. Piper Jaffray
headquarters are located in Minneapolis, Minnesota, with offices
across the U.S. and in London and Hong Kong. Piper Jaffray &
Co. is the firm's principal operating subsidiary.
(www.piperjaffray.com)
Since 1895. Member SIPC and FINRA.
© 2010 Piper Jaffray & Co., 800 Nicollet Mall, Suite 800,
Minneapolis, Minnesota 55402-7020
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