Oct 10, 20194 min read

How Lily Jade Sells Luxury Diaper Bags to a Frugal Audience.

Louise Lindberg headshot

by Louise Lindberg

Online retailer Lily Jade sells high-quality diaper bags to a target group of ‘cost-conscious moms’. How do they accomplish that? In messy #momlife, you often have to put yourself second. But that doesn’t mean you have to forego looking good while you’re pushing the stroller through the park with an (albeit cold) latte in your hand.

Let’s be honest, daily life as the mom of a toddler doesn’t always involve glitter and gold. What does typically come along with small children, however, is a lot of stuff to carry around wherever you go. Leather baby bag retailer Lily Jade set out to make life more convenient and fashionable for busy moms out there, with premium diaper bags and multi-functional leather bags.

“Mom life is sometimes messy, right, you’ve got kids that spill stuff. But we want moms to feel that they look good with their Lily Jade. It does the job, it’s gonna last, and it looks good while they’re doing mom life”, says Landon Wood, Co-founder of Lily Jade.

Targeting the ‘Target Mom’

Lily Jade launched their first fashionable leather diaper bag in 2013 and have built their brand on quality ever since. Their focus area is high-quality leather diaper bags, designed to suit the busy mom that wants to fit everything into one bag and look fashionable at the same time.

Lily Jade bags are priced around $200 and up, so you might assume that the typical customer is a middle- or upper-class mom. But it turns out that’s not the case.

“Well what’s interesting about our customers is that you would think with a higher price handbag like that, you’d be getting your New York or your L.A. mom. But in fact our core audience is what we call the ‘Target mom.’ It’s the mom that shops at Target; she’s usually pretty frugal, but she values quality. And this bag purchase is usually her first time to spend any kind of real money on a handbag”, Landon Wood explains.

Looking for an online payment solution that’s beneficial for both you and your customers? Learn more about Klarna here.

Communication with a personal touch

Lily Jade’s approach to gaining the trust of their target audience is to have a personal touch in their communication. They try to find out what’s important to their customers, and make the same things important for their brand too.

“What we have done to nurture our target group is just to be authentic with things that are going on with the brand, improvements, owning mistakes where they need to be owned, and answering questions. We want to make our customers feel that we’re a part of what they’re doing”, Landon Wood says.

It is important to win every customer’s heart because Lily Jade isn’t the only retailer in the space. Some new industry players have started to pitch a medium-quality product at a more modest $100-$200 price tag, and Lily Jade recognized they had to make changes to keep their cost-conscious shoppers on board.

A success story

Since identifying their target audience as new moms with a budget, Lily Jade began to look for flexible payment methods to offer their customers. In October 2017, they integrated Klarna into their checkout, giving shoppers the ability to finance their purchases over time.

And the results were better than they could have wished for. After the first year with Klarna in their checkout, Lily Jade saw their highest sales year ever. In June 2019 it was time to update their payments offering again and they were happy to see that they could do so with Klarna. They added the payment option of ‘4 interest-free installments’, which gives shoppers the opportunity to split their purchase into four equal payments without any interest.

After adding interest-free installments to the checkout, Lily Jade’s Klarna sales have quadrupled YoY. They have also seen a positive trend in checkout conversions, which are up over 80% in just one year.

When asking Landon Wood about his thoughts on Klarna’s payment options, he is positive and optimistic.

“It’s valuable, and people absolutely use it. They’re very vocal. There was certainly a lift in sales once we announced the Pay in 4 option, certainly a lift in utilization, and people seem to be really happy with that option. So I think it really goes a long way for customer satisfaction in general.”