Our latest research published in Toys n Playthings, explores how kids were spending their money in 2019.
Children are more financially independent than ever before and with technological advances and growing media consumption amongst kids, an expanding eco-system has created more opportunities for them to spend their money. Online spending has increased amongst kids (7-12-year olds alone have increased spend online by 33% since the beginning of 2018), as the share of online activities constantly takes up a bigger share of a child’s daily life. However, physical stores in shopping centres, towns and cities are still preferred locations to shop and where most of their money is spent.
To that end, cash remains the most popular way to spend money for kids and our latest data on shopping shows that as 2019 progressed, kids were saving less of their money and spending more. The number of children aged 3-18 who do save their money has steadily decreased since Q1 2018, from 91% to 81% and in line with this, methods of saving such as keeping it with parents, putting it in banks and building societies have become less popular this quarter.
Over two thirds of kids in the UK over the age of six get a regular pocket money allowance from their parents, with half of these kids also being bought things by their parents ad-hoc. Pester power shows no sign of slowing down, even amongst teenagers where the number being bought things by their parents has increased incrementally from 47% this time last year to 56% now. This highlights the need for both products and retailers to appeal to kids and parents alike – even for these older age groups – and retailers that do this best are reflected in kids favourite High Street stores.
As you may expect where kids like to spend their money vastly differs by age and gender. Both boys and girls aged 3-6 continue to cite Smyths Toys as their favourite shop on the High Street, particularly boys and with the retailer holding live events in-store with LEGO, it’s evident why. As boys grow older GAME sees a huge jump in popularity and is the favourite store for 7-15-year olds, whilst older teens favour fashion and sports retailer JD Sports, reflecting the wider interests of their eco-system.
Amongst girls aged seven and above Primark’s popularity is unmatched, and it is the favourite High Street store for 14% of girls of all ages; its popularity has grown by 26% since the start of 2018 (up from 11%). Recent licensing deals at the retailer, including the expansion of Disney ranges help keep kids engaged with the brand. Coupled with very competitive price-points, they have an un-rivalled advantage over others in the fashion market.
Whilst technology may be set to disrupt retail (in-app shopping and Generation Speak), there is still a place for High Street shops in kid’s ecosystems. Retailers that expand their remit beyond exclusively selling products to instead offer something experiential – a destination shop – will have more of a chance to survive in an increasingly difficult landscape.
Our methodology enables us to track the entire, inter-connected kid’s ecosystem from the toys and games they play with, to their favourite brands and devices. We specialise in helping clients identify new products before the masses do, understand the true performance of a product and how to maximise their investment from a sales and marketing perspective.
To download a complimentary 2020 FUTURE FORECAST report, click below: