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How Hypebeast and Afterpay are coming together to make streetwear and luxury goods more accessible to the next-gen consumer.

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The unique partnership anchored on buy now, pay later is making streetwear and luxury goods more accessible to the next-gen consumerIn 2022, Huan Nguyen and his team were looking for ways to make the products sold on <a href="https://hbx.com/" rel="noopener noreferrer" target="_blank">HBX.com</a> — a global e-commerce platform and retail destination of the Hypebeast Group — more accessible to shoppers. HBX consumers are predominantly Gen Z and Millennials, says Nguyen, who is the group’s Chief Revenue Officer.That, too, is the demographic most likely to use a buy now, pay later (BNPL) platform, which offers flexibility by allowing shoppers to purchase an item with no interest over four payments. For HBX, a partnership with Afterpay seemed fitting. “As a multi-brand retailer, we carry brands ranging from streetwear to luxury brands,” Nguyen says. “Offering Afterpay to our customers was something that was really important to us.”&nbsp;

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Consumer spending on BNPL platforms is on the rise and is&nbsp;<a href="https://www.juniperresearch.com/press/buy-now-pay-later-spend-to-accelerate-reaching/" rel="noopener noreferrer" target="_blank">expected</a>&nbsp;to reach $437 billion globally in 2027, up from $112 billion in 2022. An Afterpay&nbsp;<a href="https://newsroom.afterpay.com/updates/nearly-half-of-bnpl-consumers-prefer-pay-in-4-over-credit-cards-as-they-look-for-more-choice-at-checkout" rel="noopener noreferrer" target="_blank">survey</a>&nbsp;found that&nbsp;more than two-thirds (69%) of customers indicated that they would use BNPL more if it were more widely available, with the demand for BNPL services being higher among Gen Z customers and Millennials (79%).&nbsp;As a first step, HBX began offering the Afterpay option to customers checking out on HBX.com. The impact was immediate. “We actually saw a really interesting engagement when we launched the Afterpay feature,” Nguyen says. “A decent number of U.S. customers went through Afterpay, which we felt was really noteworthy. And it has exhibited a notable degree of consistency since that launch.”&nbsp;<h2>Boosting sales and engagement</h2>Because of their shared customer demographics, Nguyen quickly realized the potential to collaborate with Afterpay on experiential initiatives and cross-platform marketing programs that could build excitement and draw new audiences to HBX.For example, last holiday season, HBX collaborated on an Afterpay DROPSHOP program featuring the latest re-release of three different pairs of heritage Jordan-brand sneakers.

Over a three-week period in December, HBX shoppers had the option to access the shoes via a custom-designed landing page made available only to Afterpay customers or by attending a curated&nbsp;<a href="https://hypebeast.com/2023/12/afterpay-dropshop-hbx-new-york-holiday-sneaker-event-recap" rel="noopener noreferrer" target="_blank">shopping event</a>&nbsp;hosted by HBX in New York, where the Jordans (“Royal,” “Olive Craft” and “Gratitude”) were available for purchase.&nbsp;The event was a success, recalls Nguyen. “We generated a noticeable sales result which really exceeded our expectations,” he says. In fact, both sales and engagement were higher than anticipated.&nbsp;&nbsp;

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"We generated a noticeable sales result which really exceeded our expectations."

In addition, a recent&nbsp;<a href="https://hypebeast.com/2024/2/afterpay-future-of-drop-culture-panel-event" rel="noopener noreferrer" target="_blank">panel discussion</a>&nbsp;during New York Fashion Week discussed the rise and evolution of drop culture and the importance of accessibility and innovation.Nguyen says Afterpay was involved every step of the way, from the integration on dot-com to the featured products. “Putting together that curation and having it be to the benefit of an Afterpay customer worked really well,” he says.

The collaboration with Afterpay has been a success so far. “The partnership has been vital to HBX in terms of providing accessibility to customers, with the hope that it will expand our customer base. That’s really important,” Nguyen says.“And it also helps us on the publishing side because Afterpay has been such a great partner in working with us and supporting some fun content initiatives that drive traffic to HBX.”

"Afterpay has been such a great partner in working with us and supporting some fun content initiatives that drive traffic to HBX."

<h2>A taste of what’s to come</h2>Nguyen is excited about future collaborations. “We are lucky to work with a multitude of brands, from large streetwear and luxury, to up-and-coming, influencer-led fashion brands that want to be on HBX,” he says. “With that assortment, we can choose and curate which ones we think would work really well in creating a drop moment that would be exclusive to Afterpay customers.”Plus, Nguyen feels good knowing that the buy now, pay later option is helping to accomplish his initial goal: making the products on HBX.com more accessible to more people.&nbsp;“We’re offering people a way to be able to purchase items in two ways,” he says. “No. 1, by using the buy now, pay later option. And No. 2, through the programs we’ve come up with that offer Afterpay customers access to exclusive products that are really exciting for them and provide them quite a bit of value."

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How Hypebeast and Afterpay are coming together to make streetwear and luxury goods more accessible to the next-gen consumer.

How HBX is gaining new customers and driving engagement with Afterpay

Hypebeast

<h2 style="text-align: center;">MacKenzie-Childs’ Chief Marketing Officer shares how Afterpay has helped the business reach more customers and broaden its shopper demographics.</h2> MacKenzie-Childs is known for its artisan-driven home décor punctuated with distinctive checkerboard, floral patterns and hand-made touches. Since its humble beginnings in Aurora, New York in 1983, the company has grown from a small shop peddling dozens of wares to a $100-million-plus wholesale and direct-to-consumer business selling thousands of products made in the US and around the world.&nbsp;Historically, the brand has resonated with Baby Boomers. But through recent efforts to design a seamless digital shopping experience — including the option to use Afterpay — MacKenzie-Childs now draws a broader audience from all generations, says Larry Shaw, Chief Marketing Officer.&nbsp;“Our direct-to-consumer business is growing at significant, double-digit annual rates per year. That’s faster than the rest of our business, and we’re also growing at a faster rate than most companies,” says Shaw. “There’s a lot of reasons for that, but a big part of it is being relevant, current, and using payment services that make shopping easy and removing barriers.”

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<h2>Finding a BNPL service—and a marketing partner</h2>When Shaw started working at MacKenzie-Childs in 2016, the company reached consumers largely through catalogs, and occasionally via email. More than one-quarter of orders were placed by phone, and its customers were primarily older, female and financially secure, often in the top 10% to 20% of earners in their age group.&nbsp;Shaw and his team set out to modernize the brand, which identifies as aspirational luxury, by expanding its digital imprint. Part of that work entailed improving the e-commerce experience and expanding payment options to make the brand easily accessible to more customers.&nbsp;

"It was all part of the push to broaden the customer audience to a much more digital, social-focused audience and to make sure the shopping experience was consistent with that. Adding a Buy Now, Pay Later (BNPL) option was a part of that."

That’s because BNPL platforms are resonating with younger shoppers. An&nbsp;<a href="https://newsroom.afterpay.com/updates/nearly-half-of-bnpl-consumers-prefer-pay-in-4-over-credit-cards-as-they-look-for-more-choice-at-checkout" rel="noopener noreferrer" target="_blank">Afterpay survey</a>&nbsp;found that BNPL users opt for this kind of payment because it’s an attractive alternative to taking on high-interest credit card debt. In fact, more than two-thirds (69%) of customers said they would use BNPL more if it were more widely available, with the demand for BNPL services being higher among Gen Z customers and Millennials (79%).&nbsp;Shaw says the company considered different BNPL options, but Afterpay stood out for several reasons: the fact that Afterpay works differently than traditional credit, the level of support and service Afterpay provides, and the fact that Afterpay offered advertising support to help MacKenzie-Childs acquire new customers. Plus, Shaw adds, it was easy to integrate Afterpay with the e-commerce platform. “Using Afterpay was an easy step because it was what customers were looking for, and also it’s an ease-of-shopping piece for customers,” he says.&nbsp;It’s been about three years since MacKenzie-Childs began offering Afterpay, which shoppers can use online as well as in-store.&nbsp;Mentions of Afterpay are included in all of the company’s marketing materials, as a way of letting customers know about the versatility of payment methods accepted and the ease of shopping.

"This is all part of what customers expect from aspirational luxury, and also what customers expect from MacKenzie-Childs. It’s competitive out there, and ease of shopping is important."

Through the partnership, Shaw says it’s become clear that Afterpay is more than a payment offering. “It’s as much a marketing opportunity as it is a service opportunity,” he says.&nbsp;&nbsp;Afterpay and MacKenzie-Childs have collaborated on paid digital ads, including ads that have run on social media sites. And Shaw says Afterpay runs an effective affiliate marketing program. “A lot of the affiliate programs are lower-end coupon sites,” he says. “But with Afterpay on the affiliate end, you’re talking about a more affluent audience. So it’s the right customer, and they’re more likely to be incremental because of where they’re coming from.” He adds that it’s one of the company’s top 20 affiliates. In addition, he says MacKenzie-Childs has placement on the Afterpay app, and that’s also been a driver for acquiring new customers.&nbsp;

<h3>Easing the shopper’s journey</h3>Shaw has seen significant changes in the last eight years at MacKenzie-Childs as the company continually works to give customers what they want. During the pandemic, MacKenzie-Childs stopped taking orders over the phone and never reopened the call-in lines. Instead, the business invested in responding to customers better via email, live chat and offers call-backs on request. “We’re trying to align the services along with customers’ needs and expectations so we can repurpose resources towards what matters and what’s of interest,” says Shaw.&nbsp;After all, the modern shopper wants to make purchases seamlessly on their mobile devices. Shaw’s team is working to make sure that’s as easy as possible—from shopping to paying. As the company continues its efforts to broaden its audience, Shaw says one thing is clear: the fewer the barriers to shopping, the better. Today, sales aren’t solely based on the desire for a product but also on the path to purchase.&nbsp;

"We'll either win or not win based on our products. We'd hate to lose because we have the right product, but we don't have the rise ease of shopping."

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MacKenzie-Childs’ Chief Marketing Officer shares how Afterpay has helped the business reach more customers and broaden its shopper demographics.

MacKenzie-Childs' Chief Marketing Officer shares how Afterpay has helped the business reach more customers and broaden its shopper demographics.

When MacKenzie-Childs Set Out to Broaden its Omnichannel Customer Base, Adding Afterpay was Key

How MacKenzie-Childs Partners with Afterpay

Hairdresser Rumbie Mutsiwa on how Afterpay has helped grow sales.

Rumbie Mutsiwa began offering Afterpay soon after launching her business six years ago – and it quickly proved to be popular. “Some people will call ahead just to make sure we do have Afterpay.”Mutsiwa runs<a href="https://www.rumbie.co/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: transparent;"> Rumbie &amp; Co</a>, a hairdressing salon in inner-city Sydney catering to Afro, textured and wavy hair. She offers Afterpay instore and online, where the business sells haircare products.For her, offering Afterpay is simply a matter of providing customers with options. “It’s important to give people choice. Everyone’s life is different and how people run their finances is different.”

It's important to give people choice. Everyone's life is different.

“I think it’s really important to focus on customer experience… and Afterpay minimises the uncomfortable part of the transaction when someone feels as though they can’t afford it all upfront or that it isn’t something they can prioritise right now.”&nbsp;It’s a payments solution that’s helped Rumbie &amp; Co grow, too. During Afterpay Day Sale in 2021, Rumbie &amp; Co saw basket size double among customers who shopped with Afterpay. Overall, Rumbie &amp; Co experienced a 583 per cent in sales from Afterpay Day.Offering Afterpay also helps with cross-selling when clients come to pay after their hair cut or treatment and are considering buying haircare products to take home.“You’ll find that some people might come in having budgeted for their hair and then when they see how [well] the products work, they’re like “Can I get them all” And then when they see the price, they say maybe I can Afterpay this.“I think Afterpay is brilliant. It’s genius."

Rumbie & Co founder Rumbie Mutsiwa on how Afterpay has helped grow her business.

Rumbie & Co founder Rumbie Mutsiwa on how Afterpay has helped grow her business by doubling basket size and driving leads

"Afterpay doubled our basket size": Rumbie & Co

Rumbie testimonial

Natalie Fitch on why she partnered with Afterpay - and how it offers her customers options.

Natalie Fitch never intended to launch a business. When she first started making jewellery for family and friends, she viewed it as more of a creative outlet than a career.Fast forward 13 years and Fitch oversees a thriving jewellery brand, <a href="https://www.nataliemariejewellery.com/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(0, 0, 0);">Natalie Marie Jewellery</a>, based in Sydney’s Northern Beaches, which employs 12 jewellers.What hasn’t changed is Fitch’s passion for handcrafted jewellery, made with high-quality, sustainable materials - or her desire to connect with her customers and create highly personal, meaningful pieces.“It’s because I’m so engaged with customers and because I understand why they’re purchasing pieces that we decided to offer Afterpay,” says Fitch.&nbsp;

It's because I'm so engaged with customers... that we decided to offer Afterpay.

“We wanted to make our pieces as accessible as possible,” says Fitch, who notes that because the brand uses predominantly Australian materials and produces everything in-house, pieces can be expensive. “Afterpay provides our customers the opportunity to buy a piece that really speaks to them – it’s about giving our clients options.”

Natalie Marie Jewellery founder Natalie Fitch on why she partnered with Afterpay - and how it benefits her customers and her business.

Natalie Marie Jewellery founder Natalie Fitch on why she partnered with Afterpay - and how it benefits her customers and her business

Natalie Marie Jewellery: "Afterpay helps make our handcrafted jewellery accessible" Natalie Marie Jewellery 

“Afterpay helps make my handcrafted jewellery accessible.”

Natalie - “I wanted to make handcrafted jewellery accessible”

Topicals skincare founder Olamide Olowe signed up to Afterpay early on.

When <a href="https://mytopicals.com/" rel="noopener noreferrer" target="_blank">Topicals Skincare</a> founder Olamide Olowe launched her beauty brand, which is aimed at people with chronic skincare conditions, one of the first steps she took was partnering with Afterpay.Why? It’s an expected payment method among Gen Z and Millennials, says Olowe - who is herself just 24. “At this point, if you don’t have Buy Now Pay Later, it’s [comparable to] not having credit card processing, back in the day.”

Olowe adds that Afterpay is especially important for emerging and indie brands, as it eases the path to purchase and makes it easier for Gen Z and Millennials to test new brands. “As a business owner, you’re always trying to [convince customers to shop with you for the first time] to get that first sale.

Afterpay gives people the freedom and the flexibility to try a new brand.

“Afterpay lowers the barriers to entry [especially] for customers who are on the fence about purchasing your product. It’s a huge differentiator - it gives people the freedom and the flexibility to try a new brand.”

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Topicals skincare founder Olamide Olowe signed up to Afterpay early on - and explains that it is a vital payments platform for young customers.

Topicals skincare founder Olamide Olowe signed up to Afterpay early on - and explains that it is a vital payments platform for young customers

Topicals Skincare:  “Afterpay is super important for brands aimed at Gen Z and Millennials.”

 Topicals - “Afterpay is super important for brands aimed at Gen Z and Millennials.”

Hollywood’s favourite hatmaker Gladys Tamez Millinery partners with Afterpay to make her products accessible to new customers.

You might not know her name, but you’re probably familiar with <a href="https://gladystamez.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: transparent;">Gladys Tamez</a>’ work. Her hats have adorned the heads of some of Hollywood’s biggest stars, from Lady Gaga to Cher and Johnny Depp.Tamez partnered with Afterpay to make her handcrafted, artisanal hats more accessible to a wider audience.“We took on Afterpay because we had all these young girls coming in here and saying, “Do you have Afterpay?” And it’s been really good for us,” she says, noting that Afterpay’s Shop Directory drives traffic to her website every month.&nbsp;

Hollywood’s favourite hat maker, Gladys Tamez Millinery, partners with Afterpay to make her products accessible to new customers.

Gladys Tamez: “Afterpay has been great for our business”

Gladys - “Afterpay has been great for our business”

Danielle Nagel was thrilled with the sales uplift from Afterpay.

When Los Angeles fashion designer Danielle Nagel partnered with Afterpay, she knew it would be popular - but she couldn’t have guessed how much it would help her business.

The day we installed Afterpay it we had a huge sales day.

“The day we installed [Afterpay] it we had a huge sales day,” she recalls, adding that Afterpay allows her younger customers to spread out the costs of Dazey LA’s high-quality, sustainably made products.&nbsp;Afterpay has also increased average order value at Dazey LA, with Afterpay customers spending 30 per cent more on average.“Afterpay is definitely a game-changer for small businesses.”&nbsp;

Dazey LA founder Danielle Nagel says Afterpay has helped lift her average order value and drive sales.

Dazey LA founder Danielle Nagal says Afterpay has helped lift her average order value and drive sales 