In case you missed it, teens, along with the rest of us, cut back on apparel spending during the last 1–2 years. But Piper Jaffrey research shows there might be light at the end of the tunnel. In general, the apparel industry experiences cyclical patterns. New fashions induce spending increases for 3–5 years which then level off for 2–4 years. The recent survey shows that teens may be ready to emerge from the reduced spending levels within the next 6–12 months and start shopping again for trendy new wardrobes.
The survey also indicates that when teens experience budget shortages, they look to the bank of Mom and Dad. Average parental spending on apparel for teens annually is now $1,085.
Top teen apparel brands include Pacific Sunwear, Volcom, Quicksilver, Hollister and Forever 21. However, there's always room for new brands to emerge. Remind your clients that brand building now could lead to increased sales when teens begin shopping again.[Source: Piper Jaffrey release, October 2008]