Report Shows Where Gen Z Spends Their Money
Generation Z is typically described as those born between the mid-to-late 1990s and the early 2010s. A Bloomberg analysis of United Nations data found that Gen Z represents nearly one-third of the world's population.
As Gen Z teenagers move towards adulthood and represent a larger portion of consumer spending, a lot of attention is paid to their habits and preferences when it comes to spending.
Piper Sandler released its 40th biannual "Taking Stock with Teens" report, which showed teenagers' "self-reported" spending hit at an all-time survey low of $2,150, marking a drop of 9% from last fall's survey. Annual self reported spending hit an all-time high of $3,023 in the spring of 2006.
Piper Sandler surveyed 9,800 teens with an average age of 15.8 years old across 48 states online between August 19 and September 22. 48% of the respondents believe the economy is getting worse compared to 47% in the spring and just 32% last fall. 33% of those surveyed said they are currently part-time employed, while 23% of those not working said Covid-19 affected their ability to work.
Regardless, teens still did spend and Piper Sandler's report provides some interesting insight into their spending habits. 54% of respondents chose Amazon as their favorite e-commerce website, followed by SHEIN and Nike with 5% each. 90% of those surveyed said they've shopped online during the fall, while just 33% of teens said they've shopped in a department store or specialty retail store.
Nike is the favorite footwear brand by a mile as 52% of teens named it their favorite, followed by Vans and Adidas with 17% and 11%, respectively. Nike's clothing continues to rank high among teens with more than a quarter of respondents ranking it their favorite brand. Teens in the survey have now ranked Nike as their favorite clothing brand for a decade straight.
Teens overwhelmingly prefer Chick-fil-a as 21% of teens selected it as their favorite restaurant. 10% of respondents chose Starbucks, while 9% picked Chipotle as their favorite. The report found that 47% of teens either consume or are open to consuming plant-based meat and even prompted the firm to raise its price target on shares of Beyond Meat from $130.00 per share to $178.00.
"This suggests plant-based eating is more on-trend with younger consumers, which could drive growth over time as consumers age. Our teen survey results suggest Impossible and Beyond are the early leaders in plant-based meat brand awareness, as they had the most mentions among brands tried by teens," Piper Sandler senior research analyst Michael Lavery wrote.
As Gen Z gets older it will be interesting to see if they remain loyal to these companies and if their spending habits change.
Apple removes audio products. Apple has removed audio products from third parties such as Sonos, Logitech and Bose from its online store and instructed retail stores to do the same. A page that previously displayed products from these manufacturers now says "There are no products available that fit the selection you requested." The move is fueling speculation that Apple is preparing to release new audio products.
Google takes another shot at Microsoft Office. Google is rebranding its G Suite as Google Workspace and will add new tiers in a move to take on Microsoft Office. As of 2019, Microsoft has an 87.6% market share in the email and document authoring software market compared to Google's 11.5%, according to Gartner. The Basic and Business versions will remain $6 and $12 per user per month, respectively, while a Business Plus tier with more security features will debut at a cost of $18 per user per month. Google vice president and general manager of Workspace Javier Soltero said the new versions "should translate into much more value to customers, for sure."
Boeing slashes forecast. Boeing cut its 20-year forecast to 43,110 commercial aircraft deliveries, marking a 2% cut from the 44,040 the company projected last year, as the coronavirus continues to negatively affect the airline industry. This is the first time Boeing slashed its 20-year demand forecast for number of deliveries since the financial crisis. "The industry clearly has been dramatically impacted ... by the pandemic," Boeing commercial marketing vice-president Darren Hulst said.
Clover Health is the latest SPAC target. Medicare insurance startup Clover Health will go public via a merger with Chamath Palihapitiya's Social Capital Hedosophia Holdings Corp. III in a deal valuing the company at $3.7 billion. "What we have is a business that's actually delivering the promise of technology-improving, better outcomes and lower cost health care," Palihapitiya said. "This is one of the most straightforward investments I've ever made."
Led Zeppelin wins copyright case. Led Zeppelin has won its six-year long copyright fight over the origin of its hit "Stairway to Heaven." The U.S. Supreme Court declined to take the case, validating the March 2020 ruling that Led Zeppelin did not steal the opening guitar riff from the late Randy Wolfe aka "Randy California" of the band Spirit. A representative of Wolfe's estate said "Today, the world knows that: 1) Randy California wrote the introduction to 'Stairway to Heaven'; 2) Led Zeppelin are the greatest art thieves of all time; and 3) Courts are as imperfect as rock stars."