More Denim, Netflix and YouTube; Less Handbags and Broadcast Media, According to Survey of 9,400 Teens

Jaffray Companies
(NYSE: PJC), a leading investment bank and asset
management firm, completed its 30th semi-annual Taking Stock With Teens
research survey, which highlights spending trends and brand preferences
amongst 9,400 U.S. teens across 46 U.S. states.

This cycle marks a milestone for the survey, celebrating its 15th
consecutive year. Since the project began in the spring of 2001, Piper
Jaffray has surveyed approximately 125,000 teens and collected nearly 34
million data points on teen spending in fashion, beauty and personal
care, digital media, food, gaming and entertainment.

“The power of our teen survey goes beyond the information we capture in
any given season. Rather, it aids our ability to zoom out and monitor
bigger, and sometimes more subtle, but very real trends. For example,
we’ve observed fashion choices are moving back to authenticity across
denim brands, performance athletic brands and independent cosmetic
brands,” said Neely Tamminga, senior research analyst.

Fall 2015 Key Findings

Fashion, Beauty and Personal Care:

  • While overall teen spending is down from the spring survey, spending
    on fashion is up among upper-income teens.
  • Denim brands are inflecting positively for the first fall since 2010
    and the category is up substantially from last year. However, this is
    not coming at a cost to athletic brands —rather, we are seeing a
    declining rate in fast fashion retailers as a percentage of overall
    upper-income females.
  • In athletic brands, there is a clear divergence between performance
    athletic and peripheral athletic brands. Nike and comparable brands
    are strengthening in view of their mindshare dominance and
  • Accessories spending among females decelerated 4% year-over-year, in
    addition to a decline in the intention to purchase handbags.
  • Within cosmetics, there is a trend of de-concentration of brands,
    where mega brands are ceding share to smaller, independent brands.
    Central to this shift is the rise of individuality over conforming to
    a crowd.
  • Specialty stores are replacing broader merchandise/department stores
    among affluent females by consuming 33% of their shopping time—a 5%
    increase over last year.

Digital Media, Gaming and Entertainment:

  • Amazon increased mindshare to 38% of the overall votes as a preferred
    website. Furthermore, Amazon Prime membership expanded 400 basis
    points versus just six months ago.
  • Teens are spending more time on Netflix and YouTube as opposed to
    traditional TV; the amount of time they spend on these websites
    combined equates to 59% versus traditional TV at 29%.
  • The most anticipated movies this year among teens are: 1) Hunger
    Games: Mockingbird, Part 2; 2) Star Wars, The Force Awakens; and 3)
    Divergent: Allegiant, Part 1.
  • In music, broadcast radio continues to cede share to streaming, and
    Spotify is gaining on Pandora.
  • 73% of participants anticipate buying a next-generation gaming console
    or already own one, which is up 6% over last year—a faster uptake over
    previous cycles.

For an infographic and more information regarding the fall survey,
please visit

About the Survey
The Taking Stock With Teens survey is a
semi-annual research project comprised of gathering input from
approximately 9,400 teens with an average age of 16 years. Teen spending
patterns, fashion trends, and brand and media preferences were assessed
through visits to a geographically diverse subset of high schools across
the United States.

About Piper Jaffray
Jaffray Companies
(NYSE: PJC) is an investment bank and asset
management firm headquartered in Minneapolis with offices across the
U.S. and in London, Zurich and Hong Kong. Securities brokerage and
investment banking services are offered in the United States through
Piper Jaffray & Co., member NYSE and SIPC, in Europe through Piper
Jaffray Ltd., authorized and regulated by the Financial Conduct
Authority, and in Hong Kong through Piper Jaffray Hong Kong, authorized
and regulated by the Securities and Futures Commission. Asset management
products and services are offered through three separate investment
advisory affiliates registered with the U.S. Securities and Exchange
Commission: Advisory Research Inc., Piper Jaffray Investment Management
LLC and PJC Capital Partners LLC.

Piper Jaffray does and seeks to do business with companies covered in
its research reports. As a result, investors should be aware that the
firm may have a conflict of interest that could affect the objectivity
of this report. Investors should consider this report as only a single
factor in making their investment decisions. This report should be read
in conjunction with important disclosure information, including an
attestation under Regulation Analyst Certification, found at:

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Minneapolis, Minnesota 55402-7036


Piper Jaffray Companies
Pamela Steensland, 612-303-8185