Partner highlights
Aug 10, 20213 min read

The perfect fit: How INDOCHINO increased AOVs & conversions with Klarna.

Klarna K logo

by Klarna

How do you set up Gen Z and Millennial shoppers to become customers for life? Learn how custom menswear brand INDOCHINO unlocked higher order values and conversions by offering savvy shoppers a new way to pay with Klarna via Stripe.

INDOCHINO is a custom apparel-maker, bringing made-to-measure clothing at an accessible price for shoppers online and at the brand’s 70+ North American showrooms. Wanting to reach more Gen Z and Millennial customers, who are often buying their first suits, (or now needing to go back to the office,) INDOCHINO needed a partner who could help attract that audience. Further, INDOCHINO also wanted to lift its average order values (AOV), and in the long term, attract and convert new customers, increase brand loyalty and lifetime value, and set its business up for future growth. 

The solution: Partnering with Klarna and Stripe. By implementing Klarna’s Pay in 4 option, along with On-site Messaging, and co-marketing support (including paid Facebook and Instagram ads) INDOCHINO saw immediate results.

“Klarna impressed us right from the start by making sure we were set up for success. What stood out was the care the team took to understand our business goals.” –Alex Nazarevich, Ecommerce Director at INDOCHINO

Upon enabling Klarna’s Pay in 4, INDOCHINO’s AOVs rose by 16% and the brand attracted more new customers, 67% of whom were Gen Z and Millennial. INDOCHINO was paid upfront and in full for its products, while shoppers were able to create flexible payment solutions that worked best for them. 

For INDOCHINO this was already a huge win, but there were more good things to come. INDOCHINO saw a 20% increase in conversions in its ads mentioning Klarna, showing how Klarna’s customers are loyal and prefer to shop at partner retailers, and the draw flexible payments have for younger shoppers. Even better, INDOCHINO lowered its cost per ad conversion by 18% with ads including Klarna messaging, while seeing higher AOVs and new customers. 

Because the brand was already using Stripe, integration with Klarna was fast, requiring only 4 engineering days from start to finish meaning INDOCHINO saw almost an instantaneous ROI. 

“Through the Klarna and Stripe partnership, we were able to get up and running quickly with a tailored service that met our needs perfectly.” -Alex Nazarevich, Ecommerce Director at INDOCHINO

Indochino Stats

Klarna’s own recent research found 89% of shoppers are looking to update their wardrobes, and 54% are investing in new basics and nicer clothes options. Those trends made Klarna the perfect partner for INDOCHINO, as they tapped into a market of over 19 million engaged, loyal US Klarna shoppers. Adding Klarna encouraged Klarna users to shop at INDOCHINO and persuaded people who might have been concerned about the cost to be able to split their payments into more manageable payments. 

INDOCHINO was able to see immediate gains in all its business goals, thanks to the simple integration with Klarna and Stripe.

Read the full case study to learn more and see how Klarna can help your business grow. To implement Klarna via Stripe, click here

See how Klarna can help your business today.