California Apparel News

Before Sept. 11, the most pressing issue for many American teens was what to buy for the new school year, but that all changed on the morning of that fateful day. For the current generation of young people, the tragic events at the World Trade Center and the Pentagon may become its defining moment in history.

As researchers reported what teenagers felt about the tragedy, it was clear that teens’ priorities had shifted. Fearful and uncertain of the future, they now want to focus on accepting others, appreciating friends and loving their families. While parents brace for a recession, it remains to be seen whether their fashion-conscious offspring will follow their lead by spending less money, or whether, as the holidays approach, they will be back to their normal spending habits.

The long-term effects of the Sept. 11 attacks are unknown, but at the moment, retail is down 15–20 percent, according to Fran Sude, creative director of Los Angeles-based trend forecasting service Color by Design Options Inc.

“Since most teens are funded by their parents, their buying habits will depend on how the adults fare during this time,” Sude noted. “But I notice people are beginning to buy little things to stimulate the economy and make themselves feel good.”

Sude notes the strength of the “go America” theme in all apparel categories. The flag motif held strong this summer among juniors and their younger counterparts, the tweens. The look has continued strong, turning up on a variety of apparel and accessories.

“Even the tweens are wearing red, white and blue ribbons in their hair with matching apparel,” she continued. “Although we were all Americans before, everyone is expressing it in their own way. Many small-ticket items are ’go America’–directed. This theme is going to be big for a long time.”

Despite the economic uncertainty for the fourth quarter and early 2002, manufacturers and retailers will be hard-pressed to give up the growth potential of the teen and tween markets.

The latest U.S. Census figures show that the teenage population in America exceeds 50 million.

Prior to Sept. 11, Northbrook, Ill.-based research firm Teenage Research Unlimited projected teens’ buying power to continue to grow for the rest of this decade before leveling off, according to the firm’s communications manager, Rob Callender. In the year 2000, teenagers (ages 12 to 19) spent $155 billion on apparel, accessories, food and entertainment, with the tweens (ages 7 to 14) accounting for $21 billion of that figure.

Statistics have shown that weekly spending for those aged 12–15 averages $58.For the 16–17 age group it is $88 a week, and for those aged 18–19 it jumps to $130 a week. “Of course, that is combining money from parents for necessities and allowances for personal needs,” Callender said.

In terms of teens’ income, statistics show that between the ages of 12 and 15, teens earn $36 a week. Then, at ages 16 and 17, the amount jumps to $90. The figure doubles to $180 for the 18–19 age group.

However, teens’ amount of disposable income—like that of their parents—could dramatically change depending on the economy, the country’s military actions and parents’ job security. Now retailers and manufacturers will be looking at some of the key business trends for the teen and tween market to determine whether they continue to hold true. Among these trends are the following:

bull; Teen- and tween-focused marketing—Advertisers have begun speaking directly to teens, knowing they have the purchasing power and can influence their parents’ spending, according to Scott Krugman, spokesperson for the Washington, D.C.-based National Retail Federation. Krugman points to stores like the Gap that make commercials especially for the teen market as examples of such advertisers.

Furthermore, companies have been capitalizing on teens’ technological savvy, using alternative channels, including the Internet, to reach them.

bull; Teen- and tween-focused retailers—In recent years, retailers have tapped into the teen and tween market with stores geared specifically to that market.

“If you think of the cache that Abercrombie & Fitch or Pacific Sunwear offers in the way of trendy merchandise, compared to a JC Penney, there is no question stores aiming for them will be more successful,” said Callender.

bull; Innovation and trend turnover—One element that keeps a brand popular is innovation/keeping inventory fresh, according to Callender. When teens visit a specialty shop two or three times without seeing new merchandise, they feel it is not worth the time to go back, he said, adding, “Maybe that is the reason the Gap and Old Navy fell a little in our research. Retailers and manufacturers need to mix new products into their existing lines. The more successful brands adhere to that strategy, but companies that don’t suffer the consequences.”