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