Gen Z has been Samsonite’s target audience as it aims to associate
its iconic brand with lifestyle, flexibility, purpose, and trust.
In Australia, Generation Z prioritises flexibility, innovation and empowerment according to a 2022 McCrindle Report. Samsonite has focused on developing new commercial ventures with Gen Z in mind, so it made sense to appeal to that generation’s love of flexibility, particularly when it came to payments.
“We are already the most trusted luggage brand in the world. We want new generations to see we are also a reflection of their lifestyle,” said David Oksman, Samsonite’s Vice President of Marketing and E-Commerce in the U.S. “We know they want flexibility and options in all aspects of their life.”
In the U.S., Samsonite has long offered PayPal at checkout. Recently, they’ve also started offering PayPal’s Pay Later solutions in the region. David said the company’s use of buy now, pay later (BNPL) products has brought them success with attracting younger Americans.
“PayPal’s Pay Later products are attracting a consumer who is significantly into experiences, is looking for flexibility, and is prioritising investing in travel and their mental wellness over things,” he said.
Samsonite’s results from Q4 2022 show that while the company’s PayPal U.S. sales grew 26% year over year, its sales through PayPal’s Pay Later products grew by 40%. Moreover, the average order value (AOV) of those products grew by 42%.
Gen Z makes up 55% penetration in the Buy Now Pay Later (BNPL) space.
Buy now, pay later is increasingly popular in Australia, with one-in-four having used a BNPL service in the past 6 months, up 7% since 2022 according to the 2023 PayPal eCommerce Index. This payment method is even more popular with Gen Y (33%) and Gen X (31%), with Gen Z slightly higher than all Australians (28%).
The report also shows that PayPal remains the most preferred online payment option for Australian consumers. Almost a third of (30%) choose PayPal for online payments, ahead of debit cards (24%) and credit cards (22%). PayPal is also the top payment method that Australian consumers trust to keep their payments secure and to protect them if something goes wrong. Almost two thirds (62%) mentioned PayPal here, ahead of debit cards (52%) and credit cards (49%).
David said having PayPal as a payment option in the U.S. has helped reinforce the consumers’ trust in the Samsonite brand.
He reiterated how critical building trust has been to Samsonite – including working with other brands that have the same stellar reputation, particularly when it comes to something as critical as payments and innovation.
Working with trusted partners helps build ‘position of strength’
Millennials and Gen Z consumers rate PayPal as the most
trusted brand to keep their financial information secure.
“The consumer really needs to have trust in getting to that conversion and trust that they are making the right choice for their financial approach,” he said. “PayPal, like Samsonite, is a brand with heritage that has earned the most trusted consideration for consumers. I believe it’s the best tool out there and it puts us in a position of strength and trust with our consumer. Best of all, the team is super proactive at offering opportunities and tech solution perspectives.”
Building trust involves captivating audiences with modern, innovative products and experiences, both on the shelf and at checkout. For example, from a business perspective, the company is looking at elevating their omnichannel experience by creating a connected digital ecosystem that allows user to access Samsonite products across a variety of channels including social media platforms, online marketplaces, and well-known department stores.
From a product perspective, Samsonite has started adding a dedicated space on some luggage for a Bluetooth tracking device after recent chaotic scenes in airports around the world. They also focus on sustainable practices, providing customers with zipper repair pouches at the point of purchase to encourage travelers to fix their luggage rather than throw it away.
“Trust and innovation go hand-in-hand. Trust comes from what you’ve done before and innovation comes from where we go next,” David explained. “We are always looking for new opportunities and the right tools to grow.”
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The content of this article is provided for informational purposes only. You should always obtain independent business, tax, financial, and legal advice before making any business decision.