The Needy Tween
The tween market is still a profitable one. But there are some changes retailers need to keep their eye on.
By Bessie Nestoras -- Gifts and Dec, 1/1/2007 12:00:00 AM
Kids: they grow up fast. And in today's world, they grow up faster than ever, according to Media Awareness Network, Ottawa, Ontario, Canada, which reports that children ages 11 and older don't even consider themselves kids anymore. They're burgeoning teens, with their own tastes, values and buying power. "Tweens," as they're called, are a big part of the consumer market.
For the last five years, tweens have had a tremendous amount of spending money and a growing independence. But that dynamic is definitely changing. Parents today — mainly Gen-Xers — are not as willing to let their children spend freely. They're happy to see their kids make decisions, but it's the parents who have the final say in what they buy.
To take full advantage of the highly profitable tween market, retailers need to understand the buying patterns of both tweens and their parents, and shift along with customers, rethinking — and restocking — merchandise offered.
SHIFTING PATTERNS
According to the National Retail Federation's 2006 Back-to-School Consumer Intentions and Actions Survey, spending on back-to-school shopping is estimated to reach $17.6 billion this year, up from $13.4 billion last year. That's a lot of money — and a sizable amount of it is coming from the tween market.
"Tween buying power is larger than with any prior generation," explains James Chung, president of Reach Advisors, a Belmont, MA, marketing, strategy and research firm that focuses on emerging trends. "Having said that, we are seeing a shift back. Five years ago tweens were in control. This new generation of parents (Gen-Xers) doesn't want to rush kids to grow up. Tweens have more information about their purchases, but they're not making the final decisions."
In years past, Boomer parents tended to give their children more freedom to make purchases on their own. But the new generation of parents (often raised themselves by Boomers) is not so quick to hand buying power to their children. And they're also not as quick to lavish spending on kids.
According to Chung, parents of tweens are split: half Boomer and half Gen-X. So you can expect the shift in buying patterns to happen slowly. But he warns that the last five years are not a good prediction of how the next five years will play out. Retailers need to observe their customers and understand what's happening in their market.
"What we saw with older parents was a greater willingness to spend on their children," says Chung. "Now we're seeing a shift toward spending on the family. [These] parents don't have as much money. They have less cash flow."
Does that mean that parents will stop spending on their kids, or that the tween market is headed for a drop? Chung doesn't think so. "It just means [buying patterns] will change, and those who can tune into their audience will shift and do okay. If you don't, you may see a drop in profits," he says.
THE COOL FACTOR
But don't take that tween product off your shelf just yet. Even though it's the parents who ultimately make the decisions, the kids still have input. "Tweens are very vocal in what they want and what they like," explains Jamie Istas, owner of The Pink Zebra Boutique, Bonner Springs, KS. And Gen-X parents are still going to spend on tweens — just not with the same frivolity that was seen in years past. "People spend on their kids before they spend on themselves," adds Istas.
The "cool factor" is an important part of any tween purchase, even if they do their shopping with parents. "Tweens are shaping their identities; they want things that will help them fit in with peers. This is where brands will come in," says Chung. "[Marketers] have figured out how to make brands important."
Sarah Rubenstein, owner of moderntots.com, Brooklyn, NY, says that savvy marketers are targeting this age group, but notes that brands aren't as important in accessories. "Brands are important, but I think more so in clothing than accessories," she says.
Rubenstein also agrees that the "coolness" of a product is the deciding factor in a purchase. "It's important that [tweens] keep up with their friends. These are self-made trends, and it's important that they follow them," she says.
"I have to find unique things that tweens can't find at big stores," Istas tells G&DA. When shopping for tweens, Istas sometimes takes her 13-year-old daughter to gift shows. But mostly she listens to her gut. "When I see something I love, I buy it. I don't buy anything I don't like because I can't sell it," she says. Istas' best sellers for tweens include magnetic frames, bottle cap necklaces and headbands.
TAKE ADVANTAGE
Decorative accessories retailers need to take note of consumers in the tween years; these kids are growing up, and it's a time for re-decorating. "Tweens need larger furniture, and they're using the computer for school, [so they'll need workspace]," says Rubenstein.
But she is cautious when buying product for her online store and catalog. (Rubenstein opened a retail shop in December 2006.) "For tweens our focus is product that's not too grown-up, too large or too intimidating. It has to be fun and whimsical, but more sophisticated than a baby's room. And the product has to have play value, because they're still playing at this age," she says.
If you're not sure you want to commit an entire section to tween merchandise, mixing a few tween-related products throughout your store should do the trick. After all, tweens are shopping with their parents, and they'll be browsing the shelves no matter what — it doesn't seem to matter if they have their own section.
Jamie Istas has a little girl section in her store, The Pink Zebra, but tweens seem to find things they like throughout the store. "The thing with tweens is they can go from the little girl section to the adult section and find something they like in each," she explains.
Tweens are still kids, they just think they're much older. When they want something, they don't just want it, they need it. And that can work to a savvy retailer's advantage.
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