Trend-Setting Companies Target Hip Young Consumers
With austerity the national mindset in this iffy economy, anything hip or trendy may seem extravagant.
Everyone must be too busy clipping sale coupons and saving soap slivers to have time for such frivolity, right? To the contrary, according to some investment experts who believe that hip can be a smart investor direction.
"People don't feel flush right now so they need a reason to buy stuff," explained
The ability to keep up with often-fickle trends is a worthy skill that many companies have failed miserably trying to master. Those that have done it best often command top dollar for their shares, but their likelihood of continued success could make them worth their premium price.
One retailer that consistently attracts the hippest of young people -- ranging in age from the teens to mid-20s -- is
"You go into one of its stores and it's like a flea market or thrift market, the appeal being that you don't know what you're going to see," she explained, noting that even snowy weather didn't dampen sales. "It has an ear to both guys and girls as target customers and knows how to change to keep up with those customers."
It is quite possible that when those young customers return home they relax by playing best-selling videogame Guitar Hero, which lets them simulate playing the guitar across a variety of rock music songs. It is from
"Cool games that hardcore gamers like are still coming from the traditional players in this space," noted
The videogame portfolio of Activision Blizzard includes Call of Duty,
The stock of Activision Blizzard (ATVI) is up 5 percent this year following last year's 29 percent increase. Its consensus analyst rating is between "strong buy" and "buy."
For the modern crowd that expects the latest communication devices,
"Apple's iPhone will gain even more market share when it moves to multiple carriers rather than just
Apple has remained a relevant company, said Lippert, who expects its new iPad tablet computer will also be successfully marketed by the company to the college-age crowd.
"There is no more hip company in technology than Apple," agreed Tran. "While it remains to be seen how big an impact the iPad will have on the market, I'm leaning toward the view that it will be another huge hit."
The stock of Apple (AAPL) is up 7 percent this year after last year's 147 percent increase. Its consensus analyst rating is between "strong buy" and "buy."
"The YouTube service used by millions of people is one reason why Google is still hip and cool," said Lippert. "Other companies such as
Engadget, a popular Web-based consumer electronics magazine based in
Another Driscoll favorite is
Whether 2010 hipness leaders will continue into 2011 and beyond will be decided by their hip customers.
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Investing - Trend-Setting Companies Target Hip Young Consumers
(c) 2010 Andrew Leckey