Kids are savvy, affluent consumers who retailers should court

Discount Store News, Sept 15, 1997 by Carolyn E. Setlow

Today's children are the savviest, most affluent young consumers ever. Roper research shows that kids ages 8 to 17 have billions of dollars in annual discretionary income. Even many 6-to 7-year-olds make purchase decisions on their own.

While children previously were "seen and not heard," today's kids are either spending money on their own, making purchases with parental guidance or participating in family purchase decisions.

It makes sense to reach out to these active consumers, whether that means bringing them into stores alone or with their parents. Some ideas: Hold child- or family-oriented in store events, contests and promotions, enlisting local celebrities, DJ's and youth-related organizations. Discuss sponsoring joint promotions with vendors. Tie in to school events or offer discounts to students with IDs. Encourage classes or schools to earn rebates for needed supplies by accumulating points through individual and family purchases.

Joan Chiaramonte, the Roper vp who directs Roper's annual Youth Report, underscores that kids' importance as consumers will continue to grow as their economic clout grows. She reports that children have more spending money than ever before, with teenagers averaging more than $25 a week.

Books, games, toys, computers, electronics, clothes, jewelry, personal care products and videos are all areas where today's kids have considerable input if not autonomy. Almost three-quarters of all teens make their own purchase decisions for books, games, toys and clothes.

Except for computer software and CD-ROMs, more than half of children say they usually make their own decisions in all categories surveyed, from 51% for videos purchased to 94% for candy and snacks.

A larger percentage of teen girls than boys make their own purchase decisions about books and jewelry, while a larger percentage of teen boys than girls choose their own video games, games and toys. Forty-one percent of teen boys still rely totally on parents to purchase their personal care items as opposed to 22% of teen girls. Preteen boys (ages 8 to 12) make more independent decisions than girls in almost all categories except books, jewelry and personal care products.

Kids' preferences and needs also count when it comes to big ticket items. Roper surveys indicate that a majority of parents consider their children one of the most important reasons to buy a computer. While computers in households with kids have become fairly common, personal ownership is on the rise for 7% of 6- to 7-year-olds, 99% of preteens and 25% of teens. Seventy-seven percent of kids with computers at home use game software, while 57% have word processing, 45% educational programs and 42% graphic packages.

In addition to owning computers, today's kids are filling their bedrooms with the latest home electronics. Half of 8- to 12-year-olds have a television in their room; 18%, a VCR and 6%, a personal computer. A significant number report owning a video game system (58%), a portable cassette or CD player (48%), a stereo system (34%) or a 35mm camera (17%).

Interestingly, the stereotype that electronics is a "guy thing" is being challenged: while preteen boys are slightly ahead in ownership of TVs, stereo systems and VCRs by the time they're teens, ownership is roughly equal.

Approximately two-thirds of teens have their own TV. Sixty-six percent have a portable CD or cassette player and 62% own a stereo system. Another 28% have a VCR; 17% have their own answering machine.

Today's kids are in the market for a wide range of goods and services, from candy to computers. The tuned-in marketer should not ignore this important demographic segment, which will only continue to grow in affluence and influence.