The number of teens in America is increasing again after years of declines. Also their buying power is increasing very dramatically. This will provide the basis for growth in the athletic footwear and apparel market for years to come.
March 10, 1998 2:32 AM EST
About Women & Marketing, February 1998
The turn of the century will see a soaring number of teens, and with them huge market potential. According to the Rand Youth Poll, in 1996, these young adults spent roughly $97.7 billion, outspending their previous year's tally for the 44th year in a row. In addition, over six in ten teens say they expected to spend even more money in 1997. The successively larger amount spent by teens stands despite the fact that the number of teenagers dropped from 42 million in 1973 to 33 million in 1990. The expected rise in the 10-19-year-old population to 40 million in 2005 will bring with it record dollar power among the nation's young adults.
An earlier Teenage Research Unlimited poll reports that over half of teens say they get spending money from their parents (53%). Nearly half (47%) also say they get cash from occasional jobs and gifts, while 32% hold part-time jobs and 30% get a regular allowance. Another 11% earn paychecks from full-time jobs. Altogether, the Rand Youth Poll estimates that teens wielded $366.5 billion worth of financial clout in 1996. That includes $82.1 billion for daily expenditures, $44.3 billion received from parents for grocery shopping, and $15.6 billion saved for future purchases. Rand also places teen influence on parental purchases in 1996 at $224.5 billion.
According to mid-1997 Rand estimates, teens' total spending in 1997 would reach $89.4 billion. Female teens would account for $48.7 billion of that total. Teenage females spend more than they save, with spending increasing with age:
* Females aged 10-12 have a total income of $20 per week, with $15.60 from an allowance and $4.40 from earnings. They spend $12.40 of that, saving $7.60.
* Females aged 13-15 make $49.90 per week, with $25.85 from an allowance and $24.05 from earnings. They spend $44.90 of that, saving just $5.
* Teen women aged 16-19 make $100.25 a week, with the majority, $62.50, from earnings and $37.75 from an allowance. They spend $89.65 of that, saving $10.60.
Much of these teens' spending goes to clothing. Young women aged 10-12, for example, spend $2.60 a week on clothing, while those aged 13-19 spend $28.95 a week. What's more, the International Council of ShOpping Centers finds that teens of both genders spend $38.55 per visit to the mall. Stillerman Jones adds that females aged 15-19 spend a mean $44.18 per mall visit. |
