The unique partnership anchored on buy now, pay later is making streetwear and luxury goods more accessible to the next-gen consumer
In 2022, Huan Nguyen and his team were looking for ways to make the products sold on HBX.com — 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.”
Consumer spending on BNPL platforms is on the rise and is expected to reach $437 billion globally in 2027, up from $112 billion in 2022. An Afterpay survey found that 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%).
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.”
Boosting sales and engagement
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 shopping event hosted by HBX in New York, where the Jordans (“Royal,” “Olive Craft” and “Gratitude”) were available for purchase.
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.
In addition, a recent panel discussion 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.”
A taste of what’s to come
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.
“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.”
Learn more about partnering with Afterpay.