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Gen Z Spending Less, But Has Appetite For Luxury Brands October 13, 2020 (0 comments)
Washington, DC—The coronavirus pandemic has put a big dent in teen spending and optimism this year. Image : Fredy Martinez Enamorado via Pixabay
An article in Retail Dive says a semi-annual Generation Z survey conducted by Piper Sandler shows teen spending declined 9% year-on-year and 5% since this past spring, an all-time low in the 20 years the survey has been held.
Almost half (48%) of teens surveyed have a pessimistic view of the economy, believing it is getting worse. That’s up slightly from last spring but 16 points higher than last fall.
In terms of category spends, not surprisingly those that related to going out—handbags and makeup—fell, but those related to staying in (i.e. video games) gained share of wallet. But teens do have an appetite for luxury, with Louis Vuitton ranked as the number-one handbag brand.
Teens also have embraced secondhand shopping, with almost half (46%) reporting they’ve bought something secondhand and more than half (58%) reporting they’ve sold something second-hand. Secondhand e-commerce platforms also are eating into market share held by department, specialty, or off-price stores.