Tween Times

When people think of kids' gifts, they usually think backpacks, licensed characters, and toys. But these days, there's a lot more to it. Kids today have strong opinions and spending power, and they take an active role in decorating their own space. Manufacturers have taken notice, and are marketing directly to the 23 million Americans aged 6 to 14.

According to Greg Livingston of the Wonder Group, Cincinnati, Ohio, kids have $260 billion to spend annually; $10–$11 billion of that their own money from allowances and gifts. The rest includes money spent on their behalf — from Christmas presents to school clothes to furnishings — as well as their input on family purchases.

Why do today's kids have so much spending power? Mostly because they're the children of the Baby Boomers, and there are a lot of them because there are a lot of Boomers. With parents having children later in life, they have more disposable income, giving kids plenty of cash to spend, as well as access to debit cards (including one with a Hello Kitty logo!) at early ages.

Whether you call them Generation Y or the Echo Boom, today's juvenile shoppers expect their products to be ready to take home right away. Price points must be low enough for parents to spring for a trend that could be old news in a year or less — or for the kids to pay on their own. That's good news for gift retailers, who can make kids repeat customers as long as they keep up with the latest must-haves.

While they're more brand-loyal than the price-driven Gen Xers, Gen Y tends to prefer lesser known brands, and regard their parents' tastes as passé. According to eBay, they are less celebrity-driven, and they care more about fair labor practices. They also prefer straightforward marketing — a simple statement of fact that lets shoppers make a decision. "Viral" marketing (product placement in popular hangouts, as well as endorsements from popular opinion leaders) is more effective than ads.

For tweens especially, advertising should be light, silly, and physical; it helps to show someone not getting the joke, which tweens find reassuring. But they don't want pure fantasy: it's more effective to make light of reality or fulfill a wish. They don't want to see too much angst, cynicism, rebellion, or sexy behavior. Nor will tweens buy a product based purely on image: they want to see the goods. Music and humor are very important. Tweens and teens are big on privacy, so don't push to collect marketing information. They don't mind getting email, however, as long as it's respectful.

Many mainstream retailers have created spin-offs aimed specifically at the teen and tween market. But you don't need a whole separate store to appeal to them. Because tweens shop mostly with parents, offer a section that will keep them happy while their parents browse. The keys to appealing to tweens are fast-moving visuals, splashy graphics, brilliant color, and interactive activities, such as encouraging them to play with merchandise.

Kids' bedrooms aren't just for sleeping anymore. "They entertain there," explains Vasso Unks, marketing director at P.J. Kids, Princeton, New Jersey. "So every room has to be equipped with multiple sleeping spaces, from bunks to trundles to full or queen size beds. And they have incredible storage units to hide all the stuff kids have nowadays."

Decorating for a child's bedroom has definitely changed over the years. Once upon a time, kids' rooms were furnished twice before they left home: first when mom decorated the nursery, and then again as pre-teens. Now kids make their rooms their own, redecorating as many as four times before leaving home, according to Unks. "By the time they're tweens, kids are very vocal about their interests. This age group has a great deal of money at their disposal, and they spend it on accessories that reflect their personalities."

With the surge of television shows like Trading Spaces: Boys vs. Girls and Trading Spaces: Family, kids are developing their own design sense, expressed in their choices of furniture, lamps, frames, and other home accents. As a result, kids are becoming more involved in what was once considered solely an adult occupation.

"There is a lot more product, and decorating is an activity that parent and child can do together," says Wonder Group's Greg Livingston. Computers, for example, bring a whole host of new desktop accessories; cell phones need holders and iPods need cases. As kids adopt the newest technologies, new gifts and accessories follow in their wake.

When it comes to decorating their rooms, tweens and teens want the coolest stuff. "Kids always want to keep up with their friends," says Unks. "It's a big thing to compare who has the coolest house, the coolest mom and dad, and of course, who has the coolest room with the coolest stuff in it."

Kids' rooms are also havens where their innermost thoughts and dreams take shape. Their space will reflect that in every possible way. "These rooms are Meccas for kids" explains Unks.

Plush animals have always been strong with this age group, and today's kids are no different. But they want products that do more, whether it's apparel or decor, notes Sandy Willens of Bestever, Torrance, California. To meet that demand, the market is evolving, with plush handbags, slippers, faux furry neck stoles, pillows, animal rugs, and trinket boxes. In fact, some manufacturers are creating whole collections coordinated around a theme that complements their stuffed toys.

And while room decor or plush may have drawn young customers into your store in the first place, other merchandise will keep them coming back. After all, this age group shops relatively frequently, so smaller, must-have replenishable items (such as greeting cards, notepads, magnets and magnet frames, journals, and other stationery items) will encourage repeat visits. Stickers for scrapbooking or decorating, notebooks and papers, and other crafting items that promote creativity and self-expression are also a strong a draw.

With relatively low price points and associations with self-expression and "self-transformation," personal care is another natural for the teen and tween market — especially for the girls. Even giants such as Mattel, which recently introduced a Barbie fragrance targeted to this age group, recognize this area's importance.

Tweens may be too young for makeup, but they're just the right age for simple fragrances, bubble bath, lip balm, and hair accessories. A boon to parents who want to make good grooming a treat and not a chore, personal care that appeals to kids needn't be for them only. Product that's safe for kids and has bright colors and whimsical packaging may appeal to Generations X and Y alike.

Fashion accessories are the final piece in the teen/tween sales puzzle. And they, too, are a big draw for repeat sales. Of course, this can be a tricky area for gift retailers, and one that some may shy from, because fashion is as fickle as it is competitive.

But there are areas of the category that should be investigated. Fashion-forward totes, backpacks, and other small wallets and bags are a good bet, especially when they're durable and well-priced. And if they don't scream "kiddie," they'll appeal to a broader range of customers while making tweens feel sophisticated. Jewelry, beads, bangles, and bling are all in; charm bracelets are personal, and reflect youngsters' emerging individuality. (See Gifts & Decorative Accessories,November 2004). For the older tween, as well as teens, don't underestimate the desirability of funky, big, brightly colored fashion watches. When it comes to fashion, time is of the essence.

Bestever's Sandy Willens notes that both kids and adults are making buying decisions these days. And even when youngsters don't make the final decision, their influence is important. "There's the tween consumer, who knows what she wants, knows the trends, and is buying the product herself," says Willens. "On the other hand, there's also the adult who is listening to the kids and purchasing based on their input."

So make sure that the merchandise you offer for your Gen Y customers complements your regular merchandise mix, and keep the shopping experience pleasant and interesting. That way you can keep younger customers coming back as they mature and their needs and tastes change.