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A Foolish Take: A New Shopping Website Is Gaining Ground With US Teens

By Leo Sun – Apr 22, 2019 at 12:00PM

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Fashion Nova's meteoric rise is a testament to Instagram's retail power.

Piper Jaffray recently polled 8,000 U.S. teens about their favorite brands, and 50% of respondents stated that Amazon (AMZN -8.43%) was their favorite shopping website, followed by Nike (NKE -1.12%), Urban Outfitters (URBN -0.07%), and American Eagle (AEO -3.17%). However, a new player, Fashion Nova, ranked fifth with a 2% share.

Chart showing favorite shopping websites for U.S. teens.

Data source: Piper Jaffray. Chart by author.

Fashion Nova was founded in 2006, and owns just five brick-and-mortar stores in malls across Southern California. However, it established a large online presence with Instagram endorsements from celebrities and influencers like Kylie Jenner and Cardi B. It claims that one Instagram post from Jenner can generate over $50,000 in sales.

Fashion Nova now has over 15.3 million followers on Instagram, compared to Urban Outfitters' 8.5 million followers, American Eagle's 3 million followers, and Nike's 86.7 million followers. Fashion Nova was also the most searched for fashion brand of 2018, according to Google.

Fashion Nova specializes in tight dresses and high-waisted pants, and most of its clothing costs between $20 to $50, which helps it keep pace with fast-fashion challengers. The U.S. apparel market is notoriously tough, but this little retailer could eventually threaten its more established peers.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Leo Sun owns shares of Amazon. The Motley Fool owns shares of and recommends GOOGL, GOOG, Amazon, and Nike. The Motley Fool has a disclosure policy.

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