Custom apparel-maker Indochino has released a case study with Klarna that reveals the successes of the brand’s use of the fintech company’s various solutions. The companies said in a statement today that average order volume, or AOV, rose 16 percent due to the use of Klarna’s marketing and flexible payment options.
The solutions included Klarna for Business’ Pay in 4 solution, on-site messaging and co-marketing support (toward paid Facebook and Instagram ads). Aside from the double-digit gain in AOV, Indochino experienced a 20 percent increase in conversion from paid ads that mentioned 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,” Klarna said, adding that of Indochino customers using Klarna, 67 percent are Millennials and Generation Z.
Klarna also said its partnership with Stripe, which is Indochino’s existing payment platform, allowed Klarna payment options to be “easily integrated into the consumer checkout experience in only four days.” Alex Nazarevich, e-commerce director at Indochino, said the brand’s 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.”
Regarding the shift to a younger customer demographic, Nazarevich the company has “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.”
David Sykes, head of North America at Klarna, said the company’s research also revealed that 89 percent of shoppers are updating their wardrobes by cleaning out their closets (72 percent) and investing in ‘going out’ clothes and new basics (54 percent). Sykes said by joining forces with Klarna, Indochino “supports shoppers who are seeking budget-friendly payment options within the high-quality men’s wear space.”
In a separate Klarna research report, the company found that 69 percent of consumers said the pandemic has changed their shopping habits, with 74 percent of respondents seeking flexible payment options.