Retail

Nike Is Becoming Less Cool For Generation Z

Teen spending behavior is changing, according to recent findings from investment bank and asset management firm Piper Jaffray Companies’ semi-annual “Taking Stock With Teens” survey. In this year’s edition, the results of which were announced Wednesday (Oct. 11), teens appear to have a measurable, growing interest in digital and a declining taste for traditional brands.

“For the first time in years, we’ve seen Nike share moderate as a preferred brand,” said Erinn Murphy, senior research analyst at Piper Jaffray, in a press release published on Business Wire. “Offsetting this weakness, we’ve seen an unexpected rise in trends like streetwear with Vans and Supreme gaining momentum. In addition, other brands such as Adidas, Puma and New Balance have been capturing more mindshare as teens gravitate toward a 1990s retro look.”

More teens are using Snapchat than ever before, as the platform was used by 47 percent of teens, a 12 percent increase over 2016. Linear TV declined 2 percent last fall with the rise of streaming services, though music streaming service Pandora saw a decrease in usage and Spotify, YouTube and Apple Music all saw increased market share.

In other Apple data points, the company saw an 81 percent increase in teen interest in its smartphones, as 82 percent of teens expect to tap the company’s lineup for their next phone purchase.

Teens are also gravitating toward Amazon for their online shopping needs, according to the Piper Jaffray Companies’ survey on spending trends, with the eCommerce platform raking in a 9 percent increase from last year to 49 percent usage. Additionally, fewer teens are shopping at specialty retailers, at just 23 percent, a 3 percent decrease from 2016, and pure eCommerce is up 2 percent year over year to 17 percent, according to the Business Wire news article.

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