You should ask your teens for shopping and investing tips

Shuli Ren, Bloomberg

Next time your teenagers have a craving for the ultra-spicy Buldak ramen or the fierce-looking Labubu toy, don’t scratch your head and question their taste. Rather, consider yourself lucky, because they are helping you spot the next billion-dollar brand before it gets on global investors’ radar.

With birth rates falling around the world, Generation Alpha, roughly born between 2010 and 2024, will have the largest economic footprint in our lifetime. An estimated $5.3 trillion has already been spent on them, and by 2030, some will be joining the labor force and earning.

What’s different with this cohort — as opposed to Gen Z, which is into self-care and “little treats” — is that they have their parents’ ear. Over 90% of moms and dads surveyed say their children are great at finding new products, according to public relations firm DKC. In addition, participants say 42% of all household spending is impacted by their children’s options.

These parents, often millennials, have seen some tough times. In the US, the American dream is once again elusive: Soaring home prices are deterring first-time buyers and a cost of living crisis is weighing on household budgets. In China, where ageism is a huge issue, the outlook is even worse. As tech companies downsize, mid-career professionals, particularly those over 35, are hit the hardest. It’s thus no surprise that millennials are happy to get inputs from their technology and social media-savvy children.

This dynamic puts influencer-promoted brands into play. For instance, even though Labubu’s Google search and social media trends seem to have peaked in July, its manufacturer Pop Mart International Group Ltd.’s shares continue to test record highs. This is because its clientele has shifted from young adults to well-to-do working moms who like to dangle Labubu keychains on their oversized “Big Ass Bag,” a trendy look this year. Once this toy goes mainstream, investors can get more imaginative with profit growth. Trading at a whopping 40 times 2025 estimated earnings, Pop Mart boasts a higher market cap than Sanrio Co. and Mattel Inc., the owners of Hello Kitty and Barbie, combined.

Once Gen Alpha gets involved, monetization speeds up. Samyang Foods Co., whose ridiculously spicy instant noodles have captivated young Americans with “Buldak Challenge” videos, had a 34% jump in first-half net profit on strong overseas sales. Its shares have risen 82% this year, with investors betting on the company’s resilience to President Donald Trump’s tariffs.

It’s not all good news that this generation has sway over their parents’ wallets, however. They are picky shoppers who multinationals will have to try extra hard to convince. According to the same DKC survey, almost all participants — largely financially insecure millennials — are teaching or planning teach to their children how to budget.

China’s teenagers are even harder to please. Thanks to a myriad of innovative businesses that have sprung up in recent years, they’ve tried all sorts of global products. Take the beauty category, for instance. Local retailers like Harmay sell affordable cosmetic samples such as body lotions from Le Labo Fragrances and face serums by La Prairie. Young fashionistas there can tell you in a heartbeat what’s good value for money.

This is perhaps why multinationals are paying so much for celebrity-founded companies. In May, Elf Beauty Inc. acquired Rhode, the upstart brand founded by Hailey Bieber, who has 55 million followers on Instagram, for $1 billion. If big corporations can’t generate the necessary buzz, they will need to rely on influencers to tell their stories.

From second-hand shopping to going sober and meat-free, young people are redefining consumption in so many ways. It’s time to listen — and get some investing tips from them. [Abridged]

Courtesy Bloomberg/Shuli Ren