Growing pains?

By | February 12, 2017
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Snapchat surrounded by question marks

Snapchat’s ability to court a young demographic has been one of its defining characteristics and the pillar of its success. But as the company prepares for its stock market debut, the photo and video messaging app’s reliance on users under the age of 25 could also be one of its biggest liabilities. “It’s the rocks many ships have crashed on,” said Erik Gordon, a professor at the Ross School of Business, who has studied companies that staked their success on the loyalty of young customers. “Think of all the teen retailers that were fabulously successful five to 10 years ago that are now in terrible shape. Look at Abercrombie and Fitch,” Gordon said. “(Young people) are not as loyal as they move on. As they start to get older, they don’t want to do what they did as kids.”