Klarna leverages A$AP Rocky to guide people out of ‘hibernation mode’

Short Dive:

• Financial technology company Klarna partners with musician A$AP Rocky to encourage consumers to refresh their appearance as the world begins to emerge from the pandemic lockdown, according to a press release. The global campaign launched on June 8 and will run through July on social media, online platforms and outside the home (OOH).
• The musician, who is Klarna shareholders and assume the role of CEO for a day on June 1, will appear on social content and a 45 second video featuring clips of his new song that will be released this summer. The spot, centered around the tagline “Take off your lockup look. Go smooth again,” shows A$AP Rocky emerging from his own lockup in New York and upgrading his cape into a suit.
• In an effort to encourage app downloads, Klarna is hold a competition on June 18th where fans can share their updated wardrobe looks for a chance to win a cut from the vintage clothing collection curated by A$AP Rocky.

Diving Insights:

With consumers emerging from their homes amid mass vaccinations and a declining COVID-19 caseload, Klarna is one of the brands and retailers stepping up their marketing to help people upgrade their wardrobes and guide them out of “fashion hibernation,” said CMO Klarna David Sandstr. in releasing.

“Following a challenging year, the world is starting to bounce back, and we believe now is the right time to truly celebrate the joys of style and fashion,” he said.

This new campaign looks to support the growth momentum of the buy now, pay later (BNPL) platform which has surged interest during the pandemic. New users of the BNPL app swelled 115% year over year, and monthly active users rose 186%, Sensor Tower found. In 2020, Klarna gained more than double the total number of users from the previous year reach 15 million.

As the big economic swings from the depths of the pandemic continue this year, some signs point to a resurgence in spending. Free spending is recovering, with a McKinsey report notes that clothing stores experienced a decrease in losses from year to year. At the same time, more than half of US consumers plan to splurge on themselves as pre-pandemic activity keeps returning. Klarna’s own research cited in the release found that 63% of consumers globally plan to dress up more often than before the health crisis, suggesting that people will be itching to update their wardrobes.

To capture the pent up excitement around shopping, Klarna taps a popular figure in the music world, hoping to capitalize on the buzz around A$AP Rocky’s. upcoming album release. The musician earlier this month served as CEO of Klarna for a day to help people reinvent fashion after more than a year mostly staying at home.

Her outfit transformation in the new video ad aims to illustrate the convenience of the Klarna shopping app that allows users to browse products and manage installment payments. The clip closes with reference to Klarna’s “subtle” tagline which has become an integral part of its marketing. Last year, the company ran its biggest US campaign to date with a whimsical ad based on the creative “Sweden for Smooother Shopping” concept.