Teens have the cash and will spend it, Trendspotters say

SAN DIEGO -- To many, retailers included, teenagers are just downright difficult to understand. To give retailers a sneak peak into the psyche and purchasing habits of the quintessential teenage customer, Teen People magazine hosted a Marketplace session June 23 that gave local teens--a panel of six--a platform to spill their likes and share their gripes about chain drug stores and the products within drug stores that get their attention.

The six panelists, all from the San Diego area, are Teen People magazine Teen Trendspotters, young people, ranging in age from 13 to 24 years old, selected by the magazine to share their opinions on a whole host of topics relevant to their lives. "These are the self-appointed ambassadors of the youth market," said one Teen People executive.

Teen People's Janice Gaudelli, affectionately known as the "dean of Teen Trendspotters," gave the audience of retailers and manufacturers a crash course on today's teen, allowing them to come face-to-face with "the almighty teen."

Each year, the magazine conducts an annual survey, ranging in size from approximately 60 to 100 questions, that goes out to all the Teen Trendspotters across the country. This year, 2,500 teens responded. Gaudelli shared selected findings from the survey, namely:

* teens influence over household spending

* their monthly spending power (cash resources)

* teens' take on advertising

* their expectations at retail.

In Gaudelli's words, "Teens rule the roost." In fact, 55 percent of Teen Trendspotters influence household purchases, with food being the No. 1 category in which teens lobby for and get their preferences. What's more, 57 percent of Trendspotters influence hair care and skin care purchases, and 62 percent influence cosmetics purchases. OTC represents the largest opportunity, with only 30 percent of teens influencing purchases in that category. TylenoI already has begun targeting teens by running an insert in Teen People.

"All of a sudden, Tylenol seems to resonate with teens," said Gaudelli.

Gaudelli also informed the audience that bad economy or not for teens money really does grow on trees. Teen Trendspotters have an average cash source of $400 per month. And while approximately $124 comes from morn and dad, 54 percent of the teens have a job from which their spending money comes.

Perhaps most surprising, 68 percent have a savings account, and 38 percent have a credit card in their name. When you're a teen, looks count, which explains why teens spend $75 per month on clothes and $50 per month on HBA items. After all, shopping is their second favorite way to spend time--after chilling out, of course.

It seems they are shopping all sorts of retail channels: 92 percent shop mass retail outlets nearly four times per month, and 87 percent shop drug stores three times per month--more titan specialty and department stores, several on the panel frequently expressed their infatuation with Target, calling attention to its extensive electronics selection. And another sung the praises of Walgreens for its friendly sales staff.

The teens stressed that stores with friendly sales associates (who don't nag) and well-lit and neatly organized displays (punctuated with bold colors) get their nod of approval--and dollars.

Gaudelli also dispelled the myth that teens view advertising as the enemy. "It's their informant on products and brands that are out there," she said. Ads seem to resonate best when they appear in print and are supported by TV. As the teens told the audience, magazines are extremely important to this group.

But if you really want to get on teens' good side, give them free stuff--whether it's gift bags, a meet-and-greet event with celebrities or even sponsorship at a music concert.

The teens also spoke out on favorite trends, such as vintage looks (to today's youth that means the '80s) and mini skirts, and topics that weigh heavily on their minds, such as the upcoming fashion collections.

For retailers, the keys to courting this group at retail are the following: upbeat mood music, good lighting, an extensive magazine selection, important teen categories, such as makeup located up front, and bright displays.

Teen Hot Picks on the Show Floor

Hottest Packaging: Bubblicious soap

Hottest Product Delivery: Caboodles Bath Petals

Hottest Product Innovation: Jay Trends Merchandising Magic Heat Pad

Hottest Booth Display: Cadbury-Schweppes

Hottest Cosmetic Product: Lotta Luv Snapple Lip Juicers

Hottest Hair Care Product: Neutrogena Triple Moisture Leave-in Foam

Hottest Food/Beverage: 7Up Plus

Hottest Skin Care: Jergens Soft Shimmer Moisturizer

Hottest Daily Hygiene Product: Noxzema Bikini Razors

Hottest GM Product: Homedics Squish Pillows

Most Buzzworthy Product: Dessert by Jessica Simpson

COPYRIGHT 2004 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
COPYRIGHT 2004 Gale Group