Bridging The Gap Between Fashion And Price With Buy Now Pay Later
There is no doubt that there has been a boom in the popularity of eCommerce in recent months due to the current pandemic. While some companies have profited during the global Lockdown, many have seen a drop in sales, particularly in the luxury fashion and skincare space. The reality of the situation is that most luxury fashion brands have not addressed the elephant in the room when it comes to the gap between price and flexible payment options.
The fashion space is one of the fastest moving industries that revolves around serving customers and searching for the next best thing. For most, keeping up with the latest trends in fashion and beauty is simply too expensive, especially when it comes to the younger generations. While they are the clients that are more likely to update their wardrobes and skin regimes more frequently, they are also the clients that have the least money to fork out upfront. Not to mention that the younger generation is warier about accumulating debt on credit and in-store cards.
With the current situation, increasing job losses, and student debt many of the younger population are facing, offering financial flexibility can help bridge the gap between the desire for instant gratification and price points in the fashion space. Buy now pay later, also known as Point Of Sale financing is quickly becoming a solution to the problem mentioned above, and most fashion houses and beauty gurus are jumping on the wagon.
Buy Now, Pay Later – A Powerful Customer Acquisition Tool
Previously, loans were reserved for mortgages and car purchases, however, the new Buy now, pay later loan model has started to cater to other goods and services including furniture, electronics, travel, and now fashion and beauty. Larger brands like Urban Outfitters, Nike, La Mer, and Drunk Elephant have embraced the power of Point of Sale financing by offering instant loans on products that can be paid back over a few months. But it’s not just about the financial flexibility for consumers, it also about maximizing your brand’s potential and reaching new heights within the space.
Consumer financing is a powerful customer acquisition tool. With affordable payback plans offered by the multi-lender network sourced by ChargeAfter, your luxury brand becomes more accessible to a wider net of people. Online financing has become one of the easiest ways to acquire new customers without dropping prices, which leaves brands out of pocket.
Cart abandonment is also a serious concern within the space and with the online fashion industry expected to generate a whopping $7 billion in online sales by 2022, it is important to stay ahead of the competition by reducing the rate of abandoned carts on your website. This is yet another solution Buy now, pay later provides. In the case where your products are more expensive than others, you are still able to outshine competitors while also keeping your customer’s financial situations top of mind. Previously, getting a customer to spend $200 on a pair of pants or face cream may have been a challenge, but now that Point of Sale financing is available to merchants, it is a lot easier to close the sale.
Buy Now Pay Later – The Future Of Luxury Fashion Brands
Easing the financial strain for customers goes a long way in building your brand. Providing them with instant loans and affordable payback plans will have a significant impact on all aspects of your business. From increased average order values to sales and lower customer acquisition costs, there is no shortage of benefits when it comes to partnering with an innovative online financing platform like ChargeAfter!