New case study showcases how INDOCHINO expanded its customer demographic and saw a 16% lift in AOV using Klarna's flexible payment options and marketing services
NEW YORK, Aug. 5, 2021 /PRNewswire/ - INDOCHINO, the global leader in custom apparel, and Klarna, the leading global retail bank, payments and shopping service, today released a case study revealing the key successes of their partnership to date.
INDOCHINO implemented Klarna for Business' Pay in 4 solution, enabling customers to split their purchases into four interest-free payments over time, while INDOCHINO is paid upfront and in full. In addition, INDOCHINO implemented Klarna's On-Site Messaging to inform shoppers about flexible payment options throughout the shopping journey, and applied Klarna's co-marketing support towards paid Facebook and Instagram ads, highlighting Klarna as a payment option to reach new customers.
Through the integration, INDOCHINO saw a 16% lift in average order value (AOV) and a 20% increase in conversion from paid ads mentioning Klarna. The brand also attracted a new demographic—young shoppers, many of whom are on the hunt for their first suit or interested in giving their wardrobes an update and want to do so responsibly. Of INDOCHINO customers using Klarna, 67% are Millennials and Gen Zers. Klarna's partnership with Stripe, INDOCHINO's existing payment platform, also meant that Klarna payment options were easily integrated into the consumer checkout experience in only four days.
"Our aim is to make great fitting, personalized clothing accessible to everyone, so partnering with Klarna on Stripe to add more flexible payment options was a natural fit for us," said Alex Nazarevich, E-Commerce Director, INDOCHINO. "We've noticed a shift in younger individuals, often at the start of their professional careers, who are suiting up with INDOCHINO through Klarna. We're looking forward to helping them continue to upgrade their wardrobes and become INDOCHINO fans for life."
"We're really excited that our partnership with INDOCHINO has enabled the company to reach a broader audience of shoppers who are refreshing their looks and seeking more transparent, flexible ways to shop and pay," said David Sykes, Head of North America, Klarna. "Klarna research found 89% of shoppers are updating their wardrobes by cleaning out their closets (72%) and investing in 'going out' clothes and new basics (54%). By joining forces with Klarna, INDOCHINO supports shoppers who are seeking budget-friendly payment options within the high-quality menswear space."
According to Klarna's recent 2021 Reopening Report, 69% of shoppers say the pandemic changed their shopping habits, with 74% now looking for flexible payment options. The Klarna for Business platform enables retailers to accommodate shifting consumer preferences by offering them a smarter way to shop and pay that fits their budgets and lifestyles, rather than the requirements of the traditional payments and banking industries.
For more information and to read the full case study, click here.
As the global leader in made-to-measure apparel, INDOCHINO has developed the shopping experience of the future. Born out of the belief that you don't need to spend a fortune on a custom wardrobe, INDOCHINO was the first company to disrupt the retail sector by making perfect-fitting, personalized apparel on a mass scale.
Customers take on the role of designer, picking out every detail of their garments to make them truly one-of-a-kind. These are made to their precise measurements and shipped directly to their door, hassle-free. The company's omnichannel approach allows them to shop online or in person at any INDOCHINO showroom. For more information, visit www.indochino.com.
We make shopping smooth. With Klarna consumers can buy now and pay later, so they can get what they love today. Klarna's offering to consumers and retailers include payments, social shopping, and personal finances. Over 250,000 retail partners, including H&M, IKEA, Expedia Group, Samsung, ASOS, Peloton, Abercrombie & Fitch, Nike and AliExpress have enabled Klarna's innovative shopping experience online and in-store. Klarna is one of the most highly valued private fintechs globally with a valuation of $45.6 billion. Klarna was founded in 2005, has over 4,000 employees and is active in 17 countries. For more information, visit klarna.com.