Teen Consumer - US - December 2004

SUMMARY

Americas 25 million teens are a formidable consumer market. Wielding as much power as Baby Boomers, Mintel expects teen spending to reach $124 billion in 2004, up 45% from 1999. Though the population will decline somewhat by 2009, teen spending power is expected to remain strong, and their habits will influence the next generation of teen consumers.

In the past, marketers resigned themselves to waiting until teens grew up to establish brand loyalties. However, as marketers have become more sophisticated, analysts now use words like "smart," "complex" and "sophisticated" to describe this young consumer group. Companies will need to work hard to keep pace with this fast-moving, heavy-spending, tech-savvy target. Successful companies will anticipate the needs and wants of teens in order to attract and satisfy them.

This Mintel report provides a snapshot of the U.S. teen as an active consumer of products and media, affecting trends in clothing, technology and entertainment while carving out specific new market segments. Smart marketers who embrace new media and innovative marketing tactics will be more effective in communicating and interacting with this audience. This report explores the theme that todays teens require highly targeted, authentic, and entertaining messages through multiple channels in order to be reached effectively.

TABLE OF CONTENTS

INTRODUCTION & ABBREVIATIONS

• Introduction
• Other relevant reports
• Definition
• Abbreviations & Terms
• Abbreviations
• Terms

EXECUTIVE SUMMARY

• Growing demographic
• Increasing diversity
• Significant spending power
• Money matters
• Sophisticated shoppers
• Beyond the mall
• Communication is king
• Internet is everyday
• Savvy advertising audience

MARKET BACKGROUND

• Teen profile
• Age
• Figure 1: U.S. population projections, 2000-2009
• Race/ethnicity
• Figure 2: Race/ethnicity of teens aged 12-17 years, 2004
• Figure 3: Number of teens aged 10-17 who are of two or more races, 2004
• Generation gaps
• Figure 4: U.S. population, by age, 2004 and 2010
• Family structure
• Figure 5: Household profile, May 2003-April 2004
• Attitudes regarding family life
• Figure 6: Teen attitudes towards family trust and freedoms, by genderand age, May 2003-April 2004
• Figure 7: Teen attitudes towards being at home with family, by genderand age, May 2003-April 2004
• Aspirations and self-awareness
• Figure 8: Teen aspirations for their future, by gender and age, May2003-April 2004
• Personal qualities
• Figure 9: Teen self-assessed qualities as compared to their parents,August 2004
• Figure 10: Teen attitudes towards personal values, August 2004
• Education
• Figure 11: Teen beliefs about how they will pay for college, 2002
• Love and relationships
• Figure 12: Who teaches teens the most about love and relationships, 2003
• Romance, dating and marriage
• Figure 13: Teen assessment of parental rules about dating, February 2003
• Figure 14: Teen attitudes about what is romantic, February 2003
• Figure 15: Teen attitudes on the ideal age to get married, February 2003
• Religion

TEENS, MONEY & INCOME

• Introduction
• Figure 16: Total U.S. teen spending, at current and constant prices,1999-2004
• Graph 1: Trends in teen spending, at current and constant prices,1999-2004
• Sources of income
• Allowance and handouts
• Figure 17: Receive allowance and amount of allowance, May 2003-April2004
• Employment
• Figure 18: Teen employment, by gender and age, May 2003-April 2004
• Figure 19: Types of jobs teens work, July 2004
• Figure 20: Weekly job earnings for teens, by gender and age, May2003-April 2004
• Teen influence on family purchases
• Figure 21: Teen influence on family vacations, by gender and age, May2003-April 2004
• The disclaimer
• Figure 22: Teens attitudes towards parents generosity, by gender andage, May 2003-April 2004
• Attitudes towards financial matters
• Figure 23: Teen attitudes towards financial matters, March 2003
• Figure 24: Teen attitudes towards saving, by gender and age, May2003-April 2004
• Figure 25: Teen attitudes towards spending, by gender and age, May2003-April 2004
• Figure 26: Teen ownership of bank accounts and ATM/debit cards, October2002
• Credit cards and investments
• Credit cards
• Figure 27: Whether teens own credit cards, by gender and age, 2004
• Figure 28: Teen attitudes towards credit cards and debt, by gender andage, May 2003-April 2004
• Stock ownership

SHOPPING

• Teen shopping trends
• Clothing and accessories
• Figure 29: Who usually pays for teens clothes, by gender and age, May2003-April 2004
• Personal care products
• Other spending
• Where teens shop
• Figure 30: Where teens shop, 2002-2003
• Figure 31: Number of Teen visits to the mall in the last four weeks, bygender and age, May 2003-April 2004
• Figure 32: Who teens go to the mall with, by gender and age, May2003-April 2004
• Figure 33: Items ordered online, by gender and age, May 2003-April 2004
• Figure 34: Amount spent shopping online, by gender and age, May2003-April 2004

TECHNOLOGY & THE INTERNET

• Introduction
• Mobile communication
• Figure 35: Teen ownership of personal communication devices, by genderand age, May 2003-April 20004
• Figure 36: Choosing service and paying bills, by age, August 2003
• Computers and the Internet
• Computer usage
• Figure 37: Teen computer usage, by gender and age, May 2003-April 2004
• The Internet
• Figure 38: Top online activities among teens in the last 30 days, bygender and age, May 2003-April 2004
• Figure 39: Amount of time spent online, May 2003-April 2004
• Figure 40: Teens attitudes towards the Internet, by gender and age, May2003-April 2004
• Electronics and games
• Games
• Figure 41: Favorite type of game for game consoles, by gender and age,May 2003-April 2004
• Portable audio devices
• Figure 42: Ownership of portable audio playing devices, by gender andage, May 2003-April 2004

LEISURE TIME

• General leisure activities
• Figure 43: Teen leisure activities, by gender and age, May 2003-April2004
• Activities inside the home
• Listening to music
• Figure 44: Purchase of any music in the last 12 months, by gender andage, May 2003-April 2004
• Figure 45: Purchase of pre-recorded CDs in the last 12 months, by genderand age, May 2003-April 2004
• Figure 46: Top genres of music purchased, by gender and age, May2003-April 2004
• Figure 47: Teen perceptions about their music taste, by gender and age,May 2003-April 2004
• Reading
• Activities outside the home
• Movies
• Figure 48: Number of times at the movies in the last 30 days, by genderand age, May 2003-April 2004
• Figure 49: Teen choices of movie genres, by gender and age, May2003-April 2004
• Concerts/live entertainment
• Figure 50: Live performance events attended during the last 12 months,by gender and age, May 2003-April 2004
• Dining out
• Figure 51: fast food restaurant visits, teens, January-September 2003
• Figure 52: With whom fast food restaurants are visited, teens,January-September 2003
• Athletic participation
• Figure 53: Frequency of exercising, by gender and age, May 2003-April2004
• Figure 54: Top sports teens participate in, by gender and age, May2003-April 2004
• Figure 55: Alternative sports teens participate in, by gender and age,May 2003-April 2004
• Travel
• Figure 56: Teen attitudes towards vacations, by gender and age, May2003-April 2004

MEDIA & ADVERTISING

ADVERTISING EXPOSURE

• Magazines and newspapers
• Figure 57: Teen attitudes towards magazines and advertising, by genderand age, May 2003-April 2004
• Figure 58: Teen reading online, by gender and age, May 2003-April 2004
• Advertising and promotions
• Figure 59: Teen attitudes towards advertising, by gender and age, May2003-April 2004
• Promotions

ADVERTISING STRATEGIES AIMED AT TEENS

• Celebrity endorsements
• Using humor
• Interactive media
• The Internet

BRAND AFFINITY

• Retailers
• Figure 60: Select retailer brands as assessed by teens, August 2004
• Technology & electronics
• Figure 61: Select technology/electronics brands as assessed by teens,August 2004
• Quick-service restaurants (QSRs)
• Figure 62: Select QSR brands as assessed by teens, August 2004
• Food manufacturers
• Figure 63: Select food brands as assessed by teens, August 2004
• Beverages
• Figure 64: Select beverage brands as assessed by teens, August 2004
• Apparel
• Figure 65: Select apparel brands as assessed by teens, August 2004
• Shoes
• Figure 66: Select shoe brands as assessed by teens, August 2004
• Sportswear
• Figure 67: Select sportswear brands as assessed by teens, August 2004

SELECT PROFILES OF BRANDS EMBRACED BY TEENS

• Brand: Steve Madden
• Brand: Dlush
• Brand: Boost Mobile
• Brand: PacSun

FUTURE TRENDS

• Multicultural expansion
• Teens continue to be big spenders
• Money management upsurge
• Busy lives drive need for convenience and technology
• A moving target snowballs
• Teens become even more sophisticated shoppers
• Growing number of "just for teens" categories
• Evolving style confidence

APPENDIX: TRADE ASSOCIATIONS

APPENDIX: RESEARCH METHODOLOGY

• Consumer Research
• Sampling & Weighting
• Presentation & Definition
• Further Analysis
• Trade Research
• Informal trade research
• Formal trade research
• Desk & Internet Research
• Sources
• Definitions
• Forecasts

APPENDIX: WHAT IS MINTEL?

• Mintel Reports
• Global New Products Database
• Comperemediaｮ
• Mintel Services
• POS+
• Mintel Consultancy