Nike losing its teen appeal, streetwear on the rise
US sporting giant Nike is losing its appeal with teens in the US, a new survey has found, as the age group gravitates toward streetwear brands including VF Corp-owned Vans and Supreme, as total spending across the age group is down on last year.
Overall teen spending for the autumn period moved down 4.4% year-over-year, according to Piper Jaffray's 34th semi-annual 'Taking Stock With Teens' research survey. The results highlight spending trends and brand preferences amongst 6,100 teens across 44 US states.
Piper Jaffray said parent contribution to teen spend is just below the long-term average of 68% at 67%.
Meanwhile, food is the most important category within a teen's wallet at 22% of spend, eclipsing clothing at 20%.
Athletic apparel is moderating somewhat led by Nike, with apparel brand preference shifting towards streetwear with brands like Vans and Supreme, but athletic footwear is seeing no slowdown.
Nike, Ralph Lauren, Steve Madden, Ugg (Deckers), Fossil and Michael Kors saw the largest declines among major brands.
"For the first time in years, we've seen Nike share moderate as a preferred brand," says Erinn Murphy, Piper Jaffray senior research analyst. "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 has been capturing more mindshare as teens gravitate towards that 1990s retro look."
The report also found that 23% of teens prefer to shop speciality retailers, which is down 3% year-over-year, and the age group increasingly prefers Amazon as its favourite website at 49% share – up 9% year-over-year.