Nike’s demise came as Adidas AG (ADDYY) “doubled its mindshare” to 4% from 2%. Athletic apparel trends are still moderating, though, as Adidas’ rise didn’t fully offset Nike’s losses. But analysts said Nike’s decline in mindshare to 23% from 29% was “what surprised [them] most” in this fall’s survey.
Overall teen spending declined 4%, but fashion as a percent of the teens’ budgets was steady from last year at 38% of total spending. Streetwear, including small brands such as Supreme and Vans, has emerged with “notable strength,” analysts said.
Missing from the top 10 preferred apparel choices this year was L Brands Inc.’s (LB – Get Report) Victoria’s Secret, which previously retained 2% of mindshare among upper-income teens. Nordstrom Inc. (JWN – Get Report) was absent from the top 10 for the second year in a row.
Other notable decliners include Fossil Group Inc. (FOSL – Get Report) , Pandora Media Inc. (P – Get Report) , Ralph Lauren Corp. (RL – Get Report) , Steve Madden Ltd. (SHOO – Get Report) , Tory Burch, Deckers Outdoor Corp.-owned (DECK) UGG and Under Armour Inc. (UA – Get Report) .
Nearly 50% of teens said Amazon.com Inc. (AMZN – Get Report) is their favorite website, proof the shift to e-commerce shopping strengthened this year. Teens estimated they spend about 17% of their time online when shopping, up from 15% a year ago.
Tommy Hilfiger says winning back customers is all about finding the right product.
Food and restaurant spending dipped to 22% of spending from its peak of 24% last spring, but remains a “focal point of teen spending,” Piper Jaffray wrote. Starbucks Corp. (SBUX – Get Report) was the only brand to retain a double-digit percentage share of the market.
As for the phones teens are glued to, 82% of respondents said the next one they buy will be an Apple Inc. (AAPL – Get Report) product. Their favorite apps were Snapchat from Snap Inc. (SNAP) and Instagram from Facebook Inc. (FB – Get Report) .