Teens have always been at the leading edge of setting trends in the fashion industry, but the latest teen fashion statement might surprise you. Besides being stylish dressers, teens are now looking for value, according to The NPD Group's latest report, Buying Habits of Teens and Tweens. Today's teens are spending much of their money at value-based stores such as mass merchants, like Wal-Mart and Target, instead of trendy mall retailers. Teens are bargain hunters. Three out of four teenagers tell NPD they shop at retailers that have the lowest prices and 73 percent say they look for sales.
“Teens today are displaying their interests in value shopping as they set new fashion trends, such as wearing upper-end product with lower-end product,” said Marshal Cohen, chief industry analyst with The NPD Group, a marketing information company. “Teens are still shopping at both specialty stores and department stores for status items. They are, for example, wearing full price shoes from Nordstrom with jeans from Target,” said Cohen.
In the NPD Group's latest report, teenagers say size availability and style outweigh the brand name. Ninety-four percent of teenagers say finding the right size is the most important factor when it comes to choosing a retailer. But 75 percent of teens look for the lowest prices and 73 percent go for the frequent sales, reflecting a value mentally that has gone beyond adults.
According to the Buying Habits of Teens and Tweens Report, teens (age 13-17) tell NPD they spend about $24 per week of their own money. They also report their parents/guardians spend an additional $24 per week on items for them – totaling almost $50 a week. Teens are funding most of their own clothing, entertainment and music/CD purchases, while mom and dad are keeping them connected by paying for things like Internet access monthly fees and monthly cell phone charges.
Two out of three teens (67 percent) tell NPD they spent money on clothing items during the three-month survey from July-September 2003. Almost as many teens (62 percent) said they spent money on entertainment, such as the movies, restaurants, sporting events, etc. Buying shoes/sneakers (50 percent) ranked third among teens.
Where are they getting the money? Almost half of the teens (48 percent) report getting an allowance from their parents/guardians, while almost as many (43 percent) report getting paid for jobs they do for non-family members (such as babysitting, pet sitting and yardwork). Additionally, one in three teens (35 percent) report they have a regular job.
“Teens impact household spending and are a coveted target when it comes to marketers and advertisers,” said Cohen. “As teens demonstrate a changing focus on their spending preferences, it becomes increasingly more important to understand how to market them in a new way. This report helps to get to the core of who the teen shopper really is,” said Cohen.
Among the teens surveyed, eight out of ten claim they're currently saving some of their money for future use. Interestingly, the number one item teens are saving for is college (53 percent). Among teenage girls, nearly two out of three say they're putting money aside for college, which is significantly higher that the proportion of teenage boys who report saving for college (64 percent vs. 40 percent).
In addition to college, teenage girls are more likely to report saving their money to buy clothing, clothing accessories, shoes/sneakers, music/CD's, jewelry and cosmetics/perfume. Boys are more likely to be saving for electronics, computer games and computer hardware.
“Teens today are still concerned with image, but the vehicle to convey that image is no longer the same,” said Cohen. “Entertainment and electronics now need to be added to the equation, and companies need to take into account teens' value-consciousness. Understanding these new priorities of teens is the key to success in selling to them,” said Cohen.
