Photo: Hollister
Hollister intros new way for kids to shop on parents’ dime
Hollister yesterday introduced what it says is a “retail industry first” and a new way to pay for clothing purchases using its mobile app.
The retailer’s service is called Share2Pay and it allows customers (primarily teenagers) to shop for the items they want and then share their digital cart with their mom, dad or some other adult who will pay for the purchase.
Hollister said that an analysis of proprietary research conducted at Abercrombie & Fitch Co. turned up a key point of frustration in the buying process for its teen customers. They were able to fill carts with items they wanted but had to wait until they could actually hand their phones to an adult for their orders to be completed. The answer, Share2Pay, was developed internally by the retailer.
Customers using the new payment feature add products to their digital cart in the normal manner. When they are ready to check out, they select Share2Pay. A link is sent in a text message to the person paying for the purchase. Items in the cart are added to the payor’s cart in the app where they can review the items, make edits if desired and check out.
The clothing chain said customers who shared their bag through Share2Pay in a soft launch earlier this year placed orders at almost twice the rate of customers who did not use it. Share2Pay is now available to all Hollister mobile app users in the U.S. and UK.
“Hollister has been at the forefront of creating seamless shopping for our teen customers and we’re excited to officially add a new payment functionality to our suite of tools. By listening to our customers and understanding the dynamic between the purchaser and wearer, we discovered a way to reduce friction,” said Samir Desai, A&F Co. chief digital and technology officer, in a statement. “Introducing new patent-pending technology like Share2Pay allows us to make shopping for teens and parents easier. I’m incredibly proud of the fully in-house team that ideated and developed this new payment solution, which we believe will optimize our teens’ experience, while converting more mobile purchases. In line with our test and learn culture, we’ll continue to listen to feedback and iterate on this innovative technology.”
Discussion Questions
DISCUSSION QUESTIONS: Will Hollister’s Share2Pay be well received by its teenage customers and their parents? Will the retailer enjoy a first mover advantage as a result of the technology’s introduction?
Poll
Loading …BrainTrust
Karen S. Herman
CEO and Disruptive Retail Specialist, Gustie Creative LLC
Steve Montgomery
President, b2b Solutions, LLC
A large proportion of purchases at Hollister are funded by parents, so the addition of this technology is a sensible way to make transactions more seamless. This is a good example of technology being used to solve an actual issue and make life easier for the consumer.
There is a lot to like about Share2Pay and it should be a gamechanger for teens and parents over the holiday season. The fact Hollister developed a proprietary in-house tech to solve a pain point shows the company cares and wants to assist their customers in purchasing what they want. The value add is less returns. The value add is greater communication between teens and parents. The value add is buzz between teens to drive more customers to Hollister. Looks like a tech win-win to me.
I’m not too fond of this. I don’t think it teaches young people life lessons except go to mom or dad.
All my grandchildren, ages 14 to 18, have a debit card. The parents load a certain amount each month. The kids add to that card through summer or after-school jobs or babysitting. They don’t ask mom or dad for permission.
Miss the school bus? Take Uber and pay for it yourself.
Will Share2Pay be successful? Without a doubt, yes.
I am sure that the teenagers customers will love Share2Pay. It allows them to continue to make the purchases without having to hand over their phone to the parent who may decide it’s a good time to see what else may be on it. Parents will continue to enjoy the ability to review and make decisions on what their teenagers want to buy.
My expectation is now that Hollister has done it other retailers who focus on the teenage market will seek to create the same functionality as fast as they can.
This seems to be a solution looking for a problem. How is this any different than using a gift card that parents give to their children (and limits their purchases through dollar limits?). Gift cards are available everywhere, require unique passwords, and have been used and accepted for years because they work so well. Why change a winning game?
Because gift cards are boring and wish list being fulfilled is a much more rewarding experience for the buyer and the recipient.
An even easier way for parents to pay for their children’s desires … what could possibly go wrong?
🙂
Having competed with both A&F as well as Hollister while at American Eagle Outfitters, this is a brilliant move. Better to share your preferences, sizes, and more vs. the boring gift card. Gift card is the perfect gift, but actually seeing what your niece, nephew or child prefers and fulfilling on that is the best innovation I’ve seen in terms of satisfying this very difficult to satisfy customer segment.
Hollister will undoubtedly have the first-mover advantage. Sharing shopping carts with parents and hassle-free checkouts will allow young customers to now shop with ease. However, I doubt how safe this feature would be given the ongoing online frauds and scams.