INDUSTRY Teens with small incomes spend big around prom time

Teens have access to disposable incomes and aren't holding back now.
WESTPORT, Conn. (AP) -- Raquel Lucas is spending a small fortune on her senior prom.
Her dress cost $250; her shoes were $100; and there was $60 for a bottle of Christian Dior's J'adore, her favorite perfume. A trip to the beauty salon will cost $70, the limo is $50 per person, and it will cost $90 just to get in the door.
Lucas, 18, who attends Staples High School in Westport, expects to pay more than $700 by the time the evening is over.
"We're going all out this year because it's our last prom," said Lucas, who got a part-time job at a clothing store to help pay for the event.
Proms are a huge business, estimated to bring in $2.7 billion in revenue for providers of dresses, shoes, lingerie, cameras, film, beauty supplies and salon services. Teens also rent limousines and hotel rooms and plan after-prom parties requiring beach gear and swimsuits.
Almost 20 million students will attend proms this year, with the average 17-year-old spending $638, or more than $1,200 per couple, according to research by Conde Nast, which publishes Your Prom and Modern Bride magazine.
Booming industry
"It's definitely become a reliable, growing industry," said Wendy Liebmann, a retail analyst at WSL Strategic Retail. "And right now, it's booming."
Retailers are pouring millions of dollars into prom advertising. Magazines such as Your Prom, Seventeen magazine's prom issue, and YM magazine's special prom book attract millions of readers.
"The prom is recession-proof," said Antonia van der Meer, editor-in-chief of Your Prom, which is published every January. "Even with the war on terror and the war in Iraq, people go to the prom. It's a feel-good event, and right now people need to feel good."
"It's totally worth it!" said Lucas, who is still shopping and making final plans before the June 6 event. "How can you put a price tag on a lifetime of memories?"
The industry has grown significantly in the past three to five years in terms of importance, the size of the market, and the emphasis teens put on it, van der Meer said.
Show me the money
"It doesn't surprise me one bit that they spend so much money," said Cindy Freeburn, director of communications for Alfred Angelo, a leading prom and bridal dress maker. "The disposable income these kids have access to is mind-boggling."
Your Prom says that of its 5.2 million readers, 55 percent have part-time jobs, earning them an average income of $4,651 a year. Overall, teens spent $172 billion in 2001, with nearly half going toward clothing, jewelry and beauty products, according to Conde Nast research.
At prom time, many teens want to splurge, particularly on dresses. So companies like Alfred Angelo are able to charge $250 to $350 per prom dress at retail, and designers like Jessica McClintock can charge even more.
"Budget restrictions just aren't a concern for prom consumers like they are at other times of the year," Liebmann said.