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Teens are spending more on beauty than ever before. Which brands and retailers are benefitting from their new BFFs?
May 21, 2018
By: Christine Esposito
Editor-in-Chief
Filled with drama, consumed with social media and flush with cash, American teens are willing to shell out big money on beauty products. According to Piper Jaffray’s latest Taking Stock With Teens survey, beauty is one of the “big three” when it comes to where teens spend their cash—and what’s better, spending in this category has reached a new high. The company’s 35th semi-annual survey highlights discretionary spending trends and brand preferences among 6,000 teens across 40 US states. Generation Z—thoseborn from the mid-1990s to the early 2000s—contributes approximately $830 billion to US retail sales annually. Overall teen spending rose 6% from the fall and is up 2% from a year ago, according to Piper Jaffray. Pizza…Then Perfume Food, beauty and video games continue to be the dominant products for which teens will spend their funds. “Within a teen’s wallet, food is the top priority but video games (for males) and beauty (for females) are gaining share,” said Erinn Murphy, a Piper Jaffray senior research analyst. And there’s great news for beauty brands: beauty spending hit a new high for females at $368 per year, led by skin care, which was up 18% year-over-year, noted Piper Jaffray. So, where are these teens spending their beauty bucks? The top beauty destinations is Sephora, followed by Ulta, Target, CVS and Walmart, based on Piper Jaffray’s survey results. The top skin care brands are skin care focused, namely Neutrogena, Cetaphil/Clinique, Clean & Clear and Mario Badescu. When it comes to online shopping, the top website for shopping was Amazon, followed by Nike, American Eagle, Urban Outfitters and Forever 21. Urban Outfitters and Forever 21 both stock a small selection of beauty items inside their brick and mortar stores. However, Forever 21 is now taking a deeper plunge to capture more of GenZ’s beauty bank account. Esther and Lisa Chang, daughters of Forever 21’s founders, have been Riley Rose stores, mall-based beauty stores. And as more doors open, Riley Rose has also added e-commerce capabilities too.
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