In a rather striking article this week, Forbes recognizes hipsters as possibly the one demographic group that’s still happily consuming, at least in the retail sector. The article argues that while hipsters – here very broadly defined – might not make a lot of money now, they are a huge, powerful consumer group, and marketing dollars spent to capture them now will likely pay off in the future. Not to mention the fact that, even today, retailers which cater to the “creative class” are thriving while the rest of the retail industry struggles:
While retailers geared toward consumers under 45–the Gap, Abercrombie & Fitch and Express–have struggled in the past year to increase sales, hipster-centric clothing outlet Urban Outfitters has reported record results.
Citing many other examples including Marc Jacobs (”Ten years ago, college kids carried backpacks…On any college campus today you’ll find moneyed girls carrying Jacobs’ $1,000 leather handbags”) and Cooper Mini (”the company saw a 15% year-over-year increase in the number of units sold” while other car sales have lagged) — the article makes a good point.
Can hipsters buy our way out of a recession?
Forbes: The New Counterculture’s Buying Power
via Racked
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Surprised American Apparel is not mentioned. (Amex: APP)
October 2nd, 2008 at 10:01 pm
If this is truly the case, I intend to corner the market in fixed gear bicycles and make a killing.
I
October 3rd, 2008 at 1:44 am
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October 3rd, 2008 at 5:31 am
This makes so much sense, at the same time though marketing towards Hipsters seems to be an oxymoron. I am looking forward to seeing more come out of the rise of the creative class.
October 4th, 2008 at 8:17 pm
I get the feeling that the buying power behind this ‘huge powerful spending group’ comes from the parents pocket.
This generation is still spending because they have never seen recession, and were brought up in environments where parents wanted the best for their children, no matter the cost. They are acting and spending the only way they know how. Experience can always change one’s outlook however, and be sure this demographic will still be affected by the economy.
November 20th, 2008 at 9:09 pm