North American Youth Movement Orientation: Vans Super ADI Second Brand

The tastes of young consumers are changing.

In April 12th, Piper Jaffray, an American research institution, released a survey report on youth retail market as scheduled.

The results show that the average clothing consumption per capita in the US is about 2600 dollars per year.

In the apparel and footwear rankings, sports brands continue to dominate, and Nike ranks first in the top two list.

It is worth noting that Vans and Lululemon are rising rapidly among young people.

On the footwear list, Vans surpassed Adidas in second place, second only to Nike.

Since 2001, Piper Jaffray has regularly conducted research on the youth retail market to track the brand preferences and consumption habits of future main consumer groups.

So far, the agency has conducted more than 30 surveys of youth consumption.

The latest report is based on Piper Jaffray's survey of about 8000 young people in the United States, with an average age of 16 years. They are usually referred to as "Z generation" consumers.

Of the respondents, 54% were men and 46% were women.

In general, Piper Jaffray estimates that the total consumption of American teenagers in 2018 was more than $75 billion.

The first consumption category of men is food, and clothing is the primary expenditure for female teenagers. 90% of the women prefer to spend in physical stores rather than online shopping.

Nike is still the most popular brand of shoes and clothing, Nike ranked first, whether clothing or footwear ranking, its share is second times more than two times, maintain a strong position.

However, Erinn Murphy, a research analyst of the report, said last year that although Nike is still the most popular footwear brand for American teenagers, this group's preference for Nike has declined for the first time in many years, and the number one brand is also under some pressure.

Vans has become the fastest growing sport brand, surpassing Adidas in the footwear list, becoming the second most popular brand of sports shoes, after Nike.

According to the data, the proportion of Vans among young people's favorite footwear brands is 20%, which has reached a new high for many years.

In December 2018, the VF group of Vans parent company announced the formal separation of jeans business.

The two major brands of Lee and Wrangler form an independent company and named it Kontoor Brands. The division is expected to be completed in the first half of 2019.

With the promotion of business divestiture, VF group will focus on the development of better sports category, and Vans will become the "top card" of the group.

In the three quarter of fiscal year 2019, financial reports showed that Vans sales increased by 25% over the three months ended December 29, 2018, leading to 16% growth in VF sports sector sales.

Among them, the Chinese market has increased by more than 20%.

The sustained growth of Vans benefited from the promotion of direct business, and its direct sales grew by 50% over the same period.

The brand's goal is to increase the total sales volume to 5 billion US dollars in 2023, and the proportion of direct business will reach 60%, that is to say, it will touch 3 billion US dollars.

In addition to Vans, Lululemon is also eye-catching. The Canadian sports brand ranks first among the ten most popular clothing brands among young people, ranking eighth, setting a record high in the survey.

In March of this year, Lululemon released its fourth quarter fiscal year 2018 report showing that revenue grew by 26% to $1 billion 170 million over the same period. Strong holiday season sales helped brands achieve 1 billion dollar quarterly revenue targets in advance.

In the 2018 fiscal year, revenue increased by 24% to $3 billion 290 million.

By contrast, Under Armour is being phased out by young Americans.

Last year, the brand took the lead in the list of male teenagers who chose to give up. Today, the status of Under Armour continues to fall, and the situation is not optimistic.

It's worth noting that Amazon is the favorite website of American teenagers, and Nike ranks second.

The popularity of Nike's electricity supplier is also reflected in the earnings data.

As of the end of February 2019, the three quarter of fiscal 2019, Nike's online business sales rose 36% over the same period, of which Nike SNKRS applications traffic and revenue reached three digit growth.