Indochino Inc., an e-retailer of men’s custom suits and other bespoke apparel, says it has cut its promised delivery time from three weeks to two. It is also working with payment provider Klarna Inc. to offer shoppers the option to pay in installments.
The retailer, No. 550 in the Internet Retailer Top 1000, says the two-week delivery guarantee applies to custom garments, including its new made-to-measure overcoats and chinos, as well as suits, shirts and blazers.
“By cutting the time it takes to produce each one-of-a-kind garment by a week, we’re continuing to delight our customers and make custom apparel an even more attractive option compared to off-the-rack alternatives,” says Drew Green, president and CEO of Indochino.
In addition to cutting delivery times, Indochino is adding online financing in response to customer feedback. It’s using global payment provider Klarna’s product Slice It to allow a shopper to spread the cost of their purchase over monthly time periods without accruing interest.
“We understand that suits can be a considerable investment for some. By helping consumers purchase their items over time, we can improve the buying journey for those that prefer this payment option,” says Michael Rouse, chief commercial officer at Klarna. “Our latest research shows that the fashion industry is adopting new payment technology enthusiastically due to consumers’ demand for increased flexibility and financial control.”
Sweden-based Klarna works with 90,000 merchants across 14 countries to help them offer financing and mobile, app, store and web payment services. Its Slice It product enables customers to apply for credit quickly—Klarna says it returns results in under 1 second—during the checkout process. Klarna presents approved shoppers a list of payment-plan options with terms starting at six months. If the order is paid in full on time, shoppers don’t accrue any interest. Klarna pays the retailer upfront in full and assumes the risk of a shopper not paying.
Earlier this month, fast fashion apparel retailer H&M (No. 547) announced it was implementing Klarna for in-store, mobile and online payments. H&M also will implement Klarna’s ‘try before you buy” Pay Later service. Similar to Slice It, the service quickly reviews a shopper’s credit during checkout. If approved for Pay Later, shoppers get 30 days from the day their order is shipped to pay for their purchase. H&M will roll out Klarna in the U.K. and Sweden first in early 2019. H&M also invested $20 million in Klarna last month, according to Crunchbase.
Indochino, which began as an online-only retailer of men’s custom suits, also has been busy rapidly expanding its showrooms that enable shoppers to visit a physical location, feel the fabric, get fitted and then order their garments online to be shipped to their homes. The retailer has opened 17 such showrooms this year alone, with three that opened just last month in Atlanta, Newport Beach and on Madison Ave. in New York. It currently has 34 showrooms with three more slated for opening soon in Halifax and Winnipeg in Canada and in San Jose, California.
The retailer says average order value in showrooms is higher than online. In showrooms, shoppers work with a style guide who creates a measurement profile and helps the shopper select fabric and customizations via an app.Favorite