H&M Invests $20 Million to Improve Omnichannel Experience

The fast fashion retailer has reportedly purchased a small stake in payment solution provider, Klarna, in a bid to create an outstanding end-to-end customer journey across all channels.

As part of the new partnership, H&M hopes to create a frictionless process for in-store, mobile and online payments, while also simplifying its deliveries and returns. The company is also looking at giving customers flexible ‘try before you buy’ pay later options through Klarna’s single technological platform.

According to a press release, the retailer is hoping to integrate these changes with the next generation of its H&M app and its digital-only loyalty program, H&M Club. Through these updated app features, H&M says customers will be presented with a better sales and post-purchase service.

“Retail is changing, and the future of fashion retail is high tech powering high touch experiences for customers,” CEO and Founder of Klarna, Sebastian Siemiatkowski said.

“Regardless of how and when consumers want to shop, we need to be there for them. Customers will no longer be forgiving of unnecessary complexity or when their retail experience does not leverage the insight available to make their engagement smart, personal and easy.”

Siemiatkowski is confident that the partnership with H&M will prove fruitful for both businesses, especially in terms of providing a unique in-store and online solution for H&M’s customers.

H&M is reportedly looking to understand how customers and their shopping habits are evolving and believes the incorporation of a “try before you buy” service will help ensure the brand continues to meet consumers’ needs moving forward.

“Try before you buy is very relevant to online fashion retail today, and to pay with their mobile phone directly through the H&M app both in-store and online,” said Daniel Claesson, the head of business development at H&M. “We want to make it possible for customers to move freely between the various channels and choose how they want to shop and experience our offering online and in-store.”

Karl-Johan Persson, the CEO of H&M Group echoes this, claiming the partnership will help drive economic value and build customer loyalty.

“This strategic partnership between H&M Group and Klarna is based on a joint relentless focus on creating great customer experiences…We will work together to elevate the modern shopping experience,” he said.

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