Piper Jaffray’s semiannual survey of teen spending habits found that younger consumers are spending more online and opting for smaller, boutique brands at the expense of larger brands like Nike and Target.
While teen spending decreased by 2% in the past year, fashion remained a priority, accounting for 38% of their shopping budgets. They also exhibited a greater preference for online shopping options, with 17% of respondents reporting that they shopped online — a 2% increase from last year.
The survey also indicated that teens are rejecting large, legacy brands in favor of smaller, more specialized options.
Here are the 10 most popular apparel brands among teens, according to Piper Jaffray’s survey.
The streetwear brand has exploded in popularity over the past five years, collaborating with popular artists like Gucci Mane and designers like Louis Vuitton. It was recently valued at $1 billion and cracked the top 10 of Piper Jaffray’s list for the first time.
9. Urban Outfitters
As the brand has grown, it has struggled to maintain its edgy reputation, and sales have sagged. Urban Outfitters has fallen four spots in the survey in the past year.
The retailer has faced criticism for its inconsistent sizing, confusing and frustrating customers with clothes that are much smaller than their printed size indicates. It claimed 3% of market share among the teens who were surveyed by Piper Jaffray.
Lululemon has been able to thrive while other athleisure companies struggle thanks to innovative products and increased international and online sales. It remains to be seen if the emergence of Amazon as a possible competitor will hurt its growth.
Despite filing for bankruptcy in 2016, PacSun remains popular among teens. Continuing to attract young customers will likely put it on the path toward long-term stability.
The beach-friendly brand has been a bright spot for Abercrombie & Fitch as the retailer continues to struggle.
4. Forever 21
The Piper Jaffray survey comes at a good time for an apparel company that’s become involved in one of the biggest scandals in the history of college sports. It remains to be seen whether the negative publicity will affect Adidas’ standing with teens over the next year.
2. American Eagle
Though its popularity among teens has slipped in the past few years, Nike remains their top choice by a significant margin, with over double the market share of second-place American Eagle. That being said, the growth of Adidas has the company on edge.