Connect with us

Fashion

Why Fashion brands should see ‘BNPL’ as a key driver for growth

Avatar

Published

on

Why Fashion brands should see ‘BNPL’ as a key driver for growth

Hesitant to add BNPL to your checkout? Think again.

In the world of payments, there is no faster growing payment method than Buy Now, Pay Later (BNPL) services: consumers’ demands for flexible ways to shop and pay online are bigger than ever. And brands can leverage consumers’ increasing demands for BNPL services for growth: offering flexible payment options will delight customers and boost business. In fact, it’s essential to get on the BNPL-train rather sooner than later: 30% of European e-commerce spend is expected to be made through BNPL payment methods in 2025 – a whopping 92% increase compared to 2019.

This is why consumers love ‘Shop now, pay later’

Research shows that 48% of Dutch and 53% of German consumers have a ‘pay after delivery’ need. Being able to see, try and feel products before buying is most important, followed by the need for a simple return process and the need for flexible payments. Essentially, BNPL services add trust, security and ease to the online shopping experience: shopping – and then paying – online becomes as easy as 1,2,3. At the same time, BNPL services lift barriers for consumers and enable them to shop and experience, now. For consumers, BNPL services bring the infinite world of things to see, try and experience a little closer to home. Especially Millennials and Gen-Z are attracted to this new way of ‘experiential’ shopping: easy, fast and best of all, without sky-high transaction costs or interest rates.

Benefits of BNPL for brands

Consumer demand for BNPL services is huge and shows no signs of slowing down: offering it to customers can help businesses increase conversion rates, basket size and build customer loyalty. But it will not only increase conversion rates among existing customers – offering BNPL in your checkout will also attract new consumers. In that regard, BNPL is as much a marketing tool as a payment method.

“The availability of post-payment services guarantees trust and control,” says Alexander Scheibel, Director of Product at AfterPay. “It ensures that consumers feel an additional level of security when shopping with our brands. Flexible ways to pay make shopping easier and more accessible”. In this light, it comes as no surprise that over six million Dutch consumers already use AfterPay – that is about half of the Dutch e-commerce shopping population.

Scheibel continues: “Another benefit for brands is that we take over the entire financial collection process, from the first invoice to dunning and debt collection, a unique service offering in our industry. This way we can facilitate a brand’s own experience throughout the entire customer journey. And at AfterPay, we take the financial risk. Our brands always receive their payout.”

Research at AfterPay Insights, AfterPay’s consumer research platform, also shows that not being able to see, try and feel products before buying is a key barrier to increase online purchases for 47% consumers who are normally loyal to offline channels. By offering BNPL services, brands can lift that barrier and entice ‘Offline Loyal Shoppers’ to shift purchases from brick-and-mortar-stores to online channels.

But what about returns?

A common assumption is that offering BNPL services will also increase a brand’s return rate. But research at AfterPay shows this not to be the case. While consumers do indeed return more – because they order varied sizes for example – they also buy more different items. This results in a higher basket value – even after returns are settled.

The moment is now: jump on the BNPL-train
BNPL is estimated to grow +92% by 2025. We even expect BNPL to become so popular that brick-and-mortar stores will offer this payment option soon. Now really is the moment to jump on the thunderous BNPL train.

Get on board! Find more information on how AfterPay can help you boost and grow your business here.

About AfterPay

AfterPay enables consumers to shop now, pay later: a fast, easy and safe way of paying. AfterPay offers five different payment options: the 14-day invoice, the campaign invoice, the consolidated invoice, fixed installments and AfterPay FLEX. These services are available at the largest global and local brands in nine countries: The Netherlands, Belgium, Germany, Austria, Switzerland, Sweden, Norway, Finland and Denmark. AfterPay is a business unit within Arvato Financial Solutions and Bertelsmann.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Fashion

Womenswear SS22 color trends

Avatar

Published

on

By

Womenswear SS22 color trends

Colour is key for consumers and SS22 saw fresh palettes that echoed the renewed sense of optimism happening amongst consumers. Soft eco influences, gender-fluid nostalgia and vibrant combinations bursting with positivity sought to reflect broader societal trends whilst still capturing the season’s playful mood.

Trendstop brings FashionUnited readers a first look at the key womenswear colour inspirations emerging on the Spring Summer 2022 catwalks.

Dry Leaf

Dry Leaf sees vintage influences meeting eco outlooks. A beautiful, natural colourway, it illustrates the importance of colour transeasonality. An innovative, emerging yet simultaneously timeless shade of green, Dry Leaf speaks to consumer desire for longevity and versatility and encompasses both feminine and masculine traits. In its merging of seasons and notions of gender, the colour is indicative of the cultural and mindset shifts happening across global society.

Womenswear SS22 color trends

Boyhood Blues

Boyhood Blues, shades often worn by boys in childhood, offer a more playful interpretation on a classic tone, with a touch of nostalgia underpinning the palette. Adopting traditionally boyish tones for womenswear reflects the move towards gender-neutral dressing. As trends begin to move more slowly and transeasonality increases in importance, vibrant spring-like shades transcend the seasons and work equally well into Fall.

Womenswear SS22 color trends

Playful Optimism

A key colour grouping for SS22, playful Optimism with its heightened sense of colour expression reflects the sense of joy entering the market as consumers gain more positive outlooks for the future. Though hues are vivid there is still a high level of curation, intelligence and thoughtfulness put into colour combinations. Although the palette is fun, it is not frivolous, maintaining the artfulness of the designs.

Womenswear SS22 color trends

Exclusive Offer:

FashionUnited readers can get free access to Trendstop’s Spring Summer 2021 Key Colour Directions Report. Simply click the banner to receive your free report.

Womenswear SS22 color trends

Trendstop.com is one of the world’s leading trend forecasting agencies for fashion and creative professionals, renowned for its insightful trend analysis and forecasts. Clients include H&M, Primark, Forever 21, Zalando, Geox, Evisu, Hugo Boss, L’Oreal and MTV.

AUTHOR: AFP

Continue Reading

Fashion

Video: Sarah Nouri SS22 collection

Avatar

Published

on

By

Video: Sarah Nouri SS22 collection

In this video, fashion label Sareh Nouri has presented its SS22
collection at New York Bridal Fashion Week (NYFW).

Watch the video below.

Do you want to see more clothing collections? Click here to view the FashionUnited Marketplace.

Video: VRAI Magazine via YouTube

Photo credit: VRAI Magazine, YouTube

Continue Reading

Fashion

VF posts revenue and earnings growth, raises outlook

Avatar

Published

on

By

my alt text
Image: Supreme

Revenue at VF Corporation increased 23 percent or 21 percent in constant dollars to 3.2 billion dollars. Excluding the impact of acquisitions, the company said in a release, revenue increased 19 percent or 17 percent in constant dollars, driven by the EMEA and North American regions, which experienced a negative impact from Covid-19 in the prior year period.

VF’s wholesale business continues to be materially impacted by the timing of shipments due to port delays and logistics challenges.

“While the recovery has been impacted by further pandemic-related disruptions, we continue to see accelerating demand signals across our business, and our ability to reaffirm our fiscal 2022 revenue and earnings outlook is a clear testament to the resiliency and optionality of our model,” said Steve Rendle, VF’s chairman, president and CEO.

VF reports earnings growth in Q2

Gross margin for the quarter increased 290 basis points to 53.7 percent, and on an adjusted basis, gross margin increased 300 basis points, including a 20 basis point positive impact from acquisitions, to 53.9 percent.

Operating income on a reported basis was 558 million dollars and on an adjusted basis, operating income increased 56 percent or 53 percent in constant dollars to 534 million dollars, including an 8 million dollars contribution from acquisitions. Operating margin on a reported basis was 17.5 percent, while adjusted operating margin increased 360 basis points, including a 30 basis point negative impact from acquisitions, to 16.7 percent.

The company added that earnings per share were 1.18 dollars on a reported basis and on an adjusted basis, earnings per share increased 66 percent or 63 percent in constant dollars to 1.11 dollars, including a 2 cents contribution from acquisitions.

VF raises full year outlook, expects 30 percent revenue growth

VF added that for the full year revenue is expected to be approximately 12 billion dollars, reflecting growth of around 30 percent, including an approximate 600 million dollars contribution from the Supreme brand.

By segment, revenue for outdoor is now expected to increase between 25 percent and 27 percent versus the previous expectation of a 24 to 26 percent increase; revenue for active is now expected to increase between 35 percent and 37 percent versus the previous expectation of a 37 to 39 percent increase; revenue for work is now expected to increase between 19 and 21 percent versus the previous expectation of a 16 to 18 percent increase. International revenue is expected to increase between 24 percent and 26 percent.
By geographic region, in the EMEA region, revenue is expected to increase between 30 percent and 32 percent. In the Asia Pacific region, revenue is expected to increase between 12 percent and 14 percent. And, in the Americas (non-U.S.) region, revenue is expected to increase between 30 percent and 32 percent.

Direct-to-consumer revenue is now expected to increase between 34 percent and 36 percent versus the previous expectation of 39 percent and 41 percent, including Digital revenue growth of about 20 percent versus the previous expectation of 29 and 31 percent.

Adjusted gross margin is expected to be around 56 percent, which represents an estimated increase of around 270 basis points. Adjusted operating margin is expected to increase around 500 basis points to around 13 percent. VF further said that adjusted earnings per share is expected to be around 3.20 dollars, including an approximate 25 cents contribution from the Supreme brand.

VF’s board of directors declared a quarterly dividend of 50 cents per share, payable on December 20, 2021, to shareholders of record on December 10, 2021.

Continue Reading

Trending

Copyright © 2021 GangMag.com