NRN Trendbites

How is the economy stressing teens?

Tue, 16 Jun 2009 13:44:11 -0500

Not only is the recession affecting adults, teens are also being impacted and that has produced a negative trickle-down effect.

HOW BIG IS THE TEEN MARKET?
In total, teens add $125 billion to the economy each year. On average, each teen spends about $5,000 a year.

BUT TEENS HAVE LESS MONEY TO SPEND THIS YEAR
Overall, jobs typically held by teens are being cut at a higher rate than adult jobs. While teens only represent about 4% of the population, 13% of teen jobs have been cut since November, 2007 (The Bureau of Labor Statistics).

Summer jobs are much less plentiful. The summer employment rate is expected to be worse than last year's rate and far less than in 2000. Typically, teens find employment at restaurants and retail; however, those venues are now cutting back rather than hiring.

Also, they get less money from their cash-strapped parents. More than a quarter of teens say they are receiving less spending money.

HOWEVER, SOME PURCHASES BY TEENS ARE NON-NEGOTIABLE
Research has shown that teens are still spending on music, DVDs, video games and video-game systems. In terms of apparel, spending on accessories is flat and spending on shoes has actually increased.

But, teens are cutting back on general apparel as well as beauty products and food – teens spent significantly less on food last Fall than Fall, 2007. Besides eating out with friends less, they are also cutting back on other ways they typically entertain themselves and hang with friends – teens are spending less on tickets for movies, concerts and sporting events.

Our research has also shown that they have altered their shopping patterns by spending more time at warehouse clubs, supercenters, discount clothing stores and on eBay and craigslist. Additionally, they are spending less time at their favorite beauty parlor. More than one-third are getting their manicures/pedicures and their haircuts/color at home due to the economic situation than in the past (NRN).

FOR TEEN GIRLS, THERE'S AN ADDED ISSUE...
During weak economic times, 15-18 year old girls generally gain weight – likely due to the higher unemployment rate and the way they spend their free time (Journal of Social Science and Medicine).

WHAT CAN YOU DO?
Conduct research with teens to learn what will draw this economic-savvy demographic to your venue to purchase your merchandise. Teens still want to be seen as "cool" and the right triggers will encourage teens to open their wallets.

"I really need to cut back..."

Fri, 01 May 2009 08:40:05 -0500

Americans are still in a state of unease regarding their financial future. In our ongoing dialogue with the consumer, take a look at what we've heard.

Are you and Optimist or Pessimist when it comes to the economy? See how you compare to the rest of America.

Mon, 30 Mar 2009 10:31:19 -0500

In order to better understand the consumers’ perspectives on the economy , we have defined two groups that are either optimists or pessimists.The optimists believe the economy will improve over the next six months or they think it will remain as "average", "good", or "excellent". Pessimists, on the other hand, believe the economic condition will get worse over the next six months or they think it will remain as "poor". Pessimists make up over half (61%) of the population, while optimists represent just under one-third (30%) of the population.

Does staying "green" still matter to consumers as they shop?

Fri, 20 Feb 2009 10:58:46 -0600

As the deteriorating economy reshaped fundamental retail strategies throughout 2008 the entire notion of environmentally sensitive actions as a competitive advantage was put into question. Does it still matter to consumers? Does it matter as much? Have economic concerns eclipsed environmental ones in the eyes of consumers? How have eco-centric consumers matured?

Are men from Mars and women from Aisle 3?

Tue, 17 Feb 2009 12:18:28 -0600

To understand the American shopper, Miller Zell and NRN A National Research Network undertook execution of a shopper behavior survey to look at how current economic conditions are impacting the shopping behaviors of men compared with women. The survey also sought to understand how shoppers felt their buying behaviors would change in the next six months.

Newest Consumer Trends in Surviving the Weak Economy

Wed, 17 Dec 2008 14:18:36 -0600

For some time, getting good bargains has been both fun ("Quest for Treasure": bargain hunting as sport) and a symbol of status ("Cheap-Chic": getting new designer clothes at discount prices at Target or H&M). With the advent of high unemployment, declining home values and loss of available credit options, consumers have been forced to learn how to live within their means ("New Austerity") and are now enjoying a new sense of fulfillment in life.

The New Millennial Grandparent/Grandchild Relationship

Wed, 17 Dec 2008 14:18:39 -0600

Attracted to common values with their grandparents and building on their close relationship with their Boomer parents, 20-something Millennials are pairing up with grandparents for companionship (hiving) and connection in ways that benefit both generations.

Consumer Strategies for Holiday '08 Shopping

Wed, 17 Dec 2008 14:18:44 -0600

The 2008 holiday shopping season promises to be especially weak, but not non-existent, say trend gurus and retail experts, so the retail challenge will be focused on obtaining share of shopping dollar rather than maximizing volume.

Back To The Future: Walkable Urbanism

Wed, 17 Dec 2008 14:18:48 -0600

"Across the nation, Americans are increasingly unable to stretch their dollars to the next payday as they juggle higher rent, food and energy bills. It's starting to affect middle-income working families as well as the poor, and has reached the point of affecting day-to-day calculations of merchants like Wal-Mart Stores Inc., 7-Eleven Inc. and Family Dollar Stores Inc.

Consumer Cutbacks in Today's Soft Economy

Wed, 17 Dec 2008 14:18:52 -0600

Modern Homes for Rural Migrators that Offer Authenticity

Wed, 17 Dec 2008 14:18:56 -0600

By 2020, half of Americans will have moved to counties with population less than $50,000 in "pretty" places. Many of these rural migrators are also moving to 1) DOWNSHIFT, where decision is made to disengage from others or from work to regain a slower lifestyle at frequently higher cost in reaction to crowding, overdevelopment and the HYPERLIFE, and for 2) TECH ESCAPE, an anti-tech "time out" from the fast life in which consumers seek old world pleasures.

New Options to Create and Expand a Sense of Purpose and Plan for the Life Beyond

Wed, 17 Dec 2008 14:18:59 -0600

"Spirituality lite" or questing " people's desire to connect to something deeper than everyday modern life â is gaining momentum, particularly among leading Baby Boomers. While it is not necessarily a need for a sanctioned religion, it is about self-improvement, life enhancement and understanding, goal-meeting, or just becoming a better person. Lately, as Boomers reach 65 and older, it has also evolved to include planning for a proper legacy and/or immortality.

Marketing to the Growing Millennial Luxury Market

Wed, 17 Dec 2008 14:19:03 -0600

There are 100 million Millennials, children born 1979 â 2000, currently age 8 - 29. Adult Millennials are responsible for $629B in consumer spending and comprise 41% of the U.S. population. And, because they have grown up in the age of dotcom billionaires, wealth and success are a given. Like their Boomer parents, Millennials are said to be "poised to become the next great luxury consumers." Following is a summary of recently published information on this special group. [Time Style & Design, Spring 2008]

Living Habits and Marketing Preferences of Latin Americans in the U.S.

Wed, 17 Dec 2008 14:19:05 -0600

There will be 18 million Latin American households in America by 2020. The following is a summary of recently published information on the Hispanic community in the U.S.

Energy-Pumping Products Appeal to Consumers' Need for Smart 'N Small Technology and Connection

Wed, 17 Dec 2008 14:19:10 -0600

The advent of cellular phone technology, personal data assistants, the worldwide web, internet and wireless technology has afforded instant availability of information directly to the consumer. At the same time, technological advancement from Smart 'N Small Technology has also added more demands and stress to consumers' lives because of an inherent need to stay tuned in, (hypertasking, connection) forcing them to juggle more responsibility, maintain a faster-paced lifestyle and trade sleep for time.

Techno-Gadgets Appeal to Consumers' Need for Hypertasking, Connection, Simplification, Control and New-stalgia

Wed, 17 Dec 2008 14:19:13 -0600

Consumers crave the latest technology to feed their need for hypertasking and connection. However, there is also a movement to bring a simpler, more natural, organic and even nostalgic feel to the high tech category, as consumers also desire simplification and the feeling of control that comes from new-stalgia.