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Indochino reveals results of partnering with Klarna

By Kristopher Fraser

Aug 6, 2021

Retail

Image: Indochino

Indochino, a custom apparel company, and Klarna, a global retail bank, payments, and shopping service, have 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 percent lift in average order value and a 20 percent 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 percent are Millennials and Gen Zers. Klarna’s partnership with Stripe, Indochinos 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 of Indochino, in a statement. “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 for Klarna, in a statement. “Klarna research found 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). 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 percent of shoppers say the pandemic changed their shopping habits, with 74 percent 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.