What's going on?
If you want to be on trend, look no further than the 2018 Love List – which surveys what every “it girl” is wearing. Unsurprisingly, Sephora and Nike ranked among the most desired brands around.
What does this mean?
The Love List is an annual US survey by Condé Nast and Goldman Sachs that looks into the changing shopping behaviour of millennials and Generation Z – a subsect of the population coming up to their peak spending power, who are therefore highly influential consumers. The survey looks at two main consumer groups, it girls and the rest of the public.
Amazon, not content with growing just its cloud business, is now the retailer of choice, according to the survey – especially with men – but it girls are resisting this change, still preferring to spend in store. People seem to be getting more casual and comfy as athletic brands are becoming more mainstream – Nike was in the top three brands and Adidas is growing increasingly popular.
Why should I care?
For markets: Popular brands aren’t always popular investments.
When investing in consumer stocks (like clothing), investors often look at which brands they see being worn on the streets. But there are lots of things that can impact a share price – a brand may be popular but not growing, or its profit could be declining. Shares of most companies in this year’s Love List have performed pretty well though – Nike, Ulta and Nordstrom shares are up 33% on average this year.
For you, personally: What’s in your wardrobe?
If the it girls are the crowd to be following, then you might be wearing a combination of Victoria’s Secret underwear, sneakers from Nike, and beauty products from Sephora, capped off with accessories from Nordstrom. Or you might not, each to their own.