Taking Stock with Teens Survey
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HIGHLIGHTS FROM OUR 39TH SURVEY August 2020 Taking Stock With Teens® A Collaborative Gen Z Insights Project Erinn Murphy SR. RESEARCH ANALYST Piper Sandler does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decisions. This report should be read in conjunction with important disclosure information, including an attestation under Regulation Analyst Certification, found at the end of this report or at the following site: http://www.pipersandler.com/researchdisclosures. Disclosures for the universe of Erinn Murphy 1. I or a household member has a financial interest in the securities of the following companies: none 2. I or a household member is an officer, director, or advisory board member of the following companies: none 3. I have received compensation within the past 12 months from the following companies: none 4. Piper Sandler beneficially owns 1% or more of a class of the following companies: none 5. Piper Sandler has had a client relationship or has received compensation for investment banking services from the following companies within the past 12 months: none 6. Piper Sandler expects to receive or intends to seek compensation for investment banking services from the following companies in the next 3 months: none 7. Piper Sandler was a managing underwriter of a public offering of, or a dealer manager of a tender offer for, the securities of the following companies within the past 12 months: none 8. Piper Sandler has had a client relationship and has received compensation for non-investment banking securities related products or services in the past 12 months for the following companies: none 9. Piper Sandler has had a client relationship and has received compensation for non-securities services in the past 12 months for the following companies: none 10. Piper Sandler is a registered market maker for the following companies: CPRI, CROX, EL, ELF, FL, FNKO, GIII, KTB, LULU, NKE, PVH, SFIX, SHOO, TPR, UAA, ULTA, WWW 11. Piper Sandler will buy and sell securities on a principal basis for the following companies: ADS GR, RL, VFC Investment Risks Risks to achievement of investment objectives include, but are not limited to, the following: • Reliance on key top management • Changing consumer preferences • Changes in input costs and raw materials • Markdown risks • Product flow and inventory disruptions • Competition • Lack of pricing power • Deleveraging of fixed expenses • Foreign exchange rate risk • General macroeconomic uncertainty What Do We Know About GenZ? • 67M GenZers born between 1997 – 2012 in the U.S., according to Pew Research • 9% of U.S. population is 19-25 years old, according to the U.S. Census Bureau • Digitally-native; highly influential; care on social issues • Piper Sandler has been doing research on the “teenager” in the U.S. since 2001 39th Semi‐Annual Taking Stock With Teens Survey • The average teen in our survey was just four years old at onset of GFC • The average teen in our survey was just three years old when the first iPhone launched 39th Semi-Annual Proprietary GenZ Research Project Teens Surveyed 16.2 50% 5,200 Average Age 49% 1% U.S. MALE FEMALE BINARY 41States 19% $65,600 44% 27% 10% Average Household Income SOUTH WEST MIDWEST NORTHEAST Survey is executed in partnership with DECA The source for all charts/tables within this report is Piper Sandler Key Takeaways Food Owned 25% of Teen Wallet Generation 85% Own iPhones 8% of Teen Spend Source: Chipotle. Chik-fil-a, Starbucks, Nike, lululemon, TikTok, Instagram, Apple, Microsoft, Sony, Nintendo, Mixhael Kors, LVMH, Sephora, ULTA, Amazon Teen SpendingDown13%Y/Y&4% Vs.Fall • 47%of teensbelievethe economy • self-reported ~$2, spending Teens assuming 27.7M teens ages 13-19. 27.7M teensages assuming around the “stock market” and the “economy” as top concerns as around the“stock market” the“economy” as topconcerns and Annual Teenage Spend Per Year $2,000 $2,200 $2,400 $2,600 $2,800 $3,000 $3,200 Spring 2005 Peak Spend Peak Fall 2005 $3,023 Spring 2006 Fall 2006 Spring 2007 Fall 2007 Spring 2008 Fall 2008 300 per year in our survey, i 300 peryear inoursurvey, is gettingworse vs.28%just is Spring 2009 Fall 2009 Spring 2010 Fall 2010 Trough Spend Spring 2011 $2,234 Fall 2011 Spring 2012 Fall 2012 Spring 2013 mplying total teensp Fall 2013 one year ago; we saw a higher level of mentions a higherlevel saw oneyearago; we well. Spring 2014 Fall 2014 Spring 2015 Fall 2015 Spring 2016 Fall 2016 ending for the of Spring 2017 Fall 2017 Spring 2018 Fall 2018 Spring 2019 $2,371 Fall 2019 $2,270 ~$63B Spring 2020 in 2020, GenZ Insights: They Actually Care About The World Most Important Political & Social Issues A closer look at what they care about... “Practicing Zero Waste” FALL 2019 SPRING 2020 “Global Warming is an important issue to me. I want the 1 Environment 16% 1 Environment 16% planet to be safe for the future.” 2 Immigration 12% 2 Coronavirus 11% 3 Gun Control 11% 3 Abortion 8% “Fashion’s impact on the Environment” 4 Abortion 8% 4 Gun Control 7% 5 Racial Equality 7% 5 Racial Equality 6% “The lack of available care for those suffering from the 6 Equality/Women's Rights 6% 6 Immigration 6% 7 Donald Trump 4% 7 Equality/Women's Rights 5% Coronavirus” 8 Bullying 3% 8 2020 Election 4% 9 2020 Election 2% 9 Health Care 3% “Gun laws not being changed” 10 LGBTQ+ Rights 2% 10 Donald Trump 2% “The Pink Tax” “Restaurants are closing, I lost my job due to it” • In Spring 2020, Coronavirus appeared in the No. 2 spot. We conducted our survey from February 17 to March 27. • Environment, nonetheless took the No.1 spot at 16% share—similar to Fall 2019. The No. 11 and No. 12 responses this year were the Economy & LGBTQ+ Rights, respectively. • In response to the question: “Is vaping a trend in school?” 79% of teens said “Yes” (vs. 82% last Fall); 53% said vaping is more popular than last year and 20% said it was less popular. GenZ Gets Specific On Their Environmental Concerns Top Environmental Concerns 1. Global Warming 6. Deforestation 2. Pollution/Waste 7. Plastic 3. Coronavirus 8. Wildlife 91% 4. Water/Ocean Health 9. Air Health Of Teens List A Specific Concern 5. Natural Disasters 10. Resource Mgmt. Teen Behavioral Changes 1. Recycling More & Reducing Waste/Litter 49% 2. Using Less Plastic, Converting To Metal Straws Have Changed Their Behavior As A Result (vs. 46% in Fall 2019) 3. Carpooling & Driving Less GenZ Insights...The Who’s Who? Who They Like & Who They Follow Favorite Celebrities Favorite Social Media Personalities 1. Kevin Hart 1. David Dobrik 2. LeBron James 2. LeBron James 3. Dwanye “The Rock” Johnson 3. Kylie Jenner 4. Billie Eilish 4. Donald Trump 5. Ariana Grande 5. Charli D’Amelio 6. Post Malone 6. Dwayne “The Rock” Johnson 7. Adam Sandler 7. Emma Chamberlain (tie) Taylor Swift 8. Kevin Hart 9. Zendaya 9. Gary Vaynerchuk 10. Donald Trump 10. PewDiePie • We asked teens for their favorite celebrity as well as their favorite influencer/personality to follow on social media. • Billie Eilish made her debut in the top-10 as the No. 4, Post Malone moved into the ranking at No. 6 and Taylor Swift tied for No. 7 (along with Adam Sandler, who has been in our top-10 before). • Similar to last time, the favorite social media personalities were YouTube & Instagram stars and athletes. Instagram & Snap Still Rule; TikTok Makes Strong Debut Social Media Preferences Highest Social Media Engagement Favorite Social Media Platform 1 Instagram 85% 1 Snapchat 36% 2 Snapchat 82% 2 Instagram 31% 3 TikTok 62% 3 TikTok 13% 4 Twitter 41% 4 Twitter 4% 5 Facebook 34% 5 Facebook 4% 6 Pinterest 27% 6 Discord 2% 7 Discord 14% 7Pinterest 1% 8 Reddit 12% 8 Reddit 1% 9 LinkedIn 4% 9 Other 1% 10 Other 4% 10 LinkedIn 0% • Picture-based apps outperform on usage, while core Facebook rebounds slightly. • Instagram continues to lead the pack in usage, while Snapchat continued as the favorite. • When asked, the average teen in our survey spends ~12 hours per week on social media. • For the first time in our survey, TikTok was a listed option as a preferred social network after strong results as a write in within “Other.” About 62% of Teens use TikTok once a month, while 13% cited it as a favorite, after 4% of teens wrote in TikTok as a favorite in Fall 19. NFLX & YouTube Top Platforms; Disney+ & Apple+ Debut Teen Daily Video Consumption 1 Netflix 33% 2 YouTube 31% 3 Cable TV 11% 4Hulu 8% 5 Disney+ 7% 6Amazon 3% 7 Apple TV+ 2% 8 Facebook Watch tab 1% 9 Other streaming 5% • On average, teens spend 33% of their daily video consumption on Netflix, down from 35% in Fall 2019. • However, Netflix was the top platform, retaking the lead from YouTube at 31% (down from 37% in Fall). • Disney+ and AppleTV+ were first-time Teen Survey options and garnered 7% and 2%, respectively. • Hulu increased slightly to 8% from 7% for the fall while Amazon Prime was flat at 3%. Time Spent Shopping Continues To Shift Online Department Store/Speciality Online Only eTailers 45% 40% 35% 30% 25% 20% 15% 10% (UI Teens) Channel By Shopping Spent Time % Fall Spring Fall Spring Fall Spring Fall Spring Fall Spring Fall Spring Fall Spring 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 • Over the last four years, time spent shopping in these two channels is relatively unchanged in aggregate.