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How Nick Perry and Peter Winkle launched global optical business Bailey Nelson, and how Afterpay has helped them grow.

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Launching any business means making sacrifices – and that was certainly true for the co-founders of <a href="https://baileynelson.com.au/" rel="noopener noreferrer" target="_blank">Bailey Nelson</a>.By any definition, by their late twenties, Nick Perry and Peter Winkle had excelled in their careers; Perry was working with the founding team at The ICONIC, while Winkle, an ex-management consultant, was set to take up a full scholarship at the University of Oxford.And yet another future beckoned; the pair had spotted a niche in the optometry market, and were convinced that a business selling stylish, modern glasses at competitive prices had potential to be successful.

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So, Perry left his job and Winkle turned down Oxford – and instead they set up a stall at North Bondi markets.&nbsp;It was, they admit, a humbling experience.&nbsp;“We literally had a table with a white plastic tablecloth over it with 20 frames laid out,” recalls Perry. “Most of our friends lived in Bondi, so basically anytime we saw someone we would hide under the table.”&nbsp;When Winkle’s parents – understandably perplexed by their son’s decision to jettison a place at Oxford – visited their stall, the pair memorably failed to sell a single pair of glasses.&nbsp;“Things were very, very tense,” remembers Perry.

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Fortunately, the business soon grew, and within a few months, Bailey Nelson opened its first store in William St, Paddington. Today, a decade later, the brand has more than 110 stores in four countries, as well as a thriving online business.Despite Bailey Nelson’s rapid expansion, Winkle and Perry’s vision has remained the same since inception. “We pride ourselves on providing incredible glasses, incredibly good prices and a great customer experience in store,” says Winkle.The pair credit their success to a great product, hard work, attracting the right talent – and perfect timing; when Bailey Nelson launched the retail optometry landscape was ripe for innovation, they say.

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"The pair credit their success to a great product, hard work, attracting the right talent – and perfect timing."

“When Peter and were looking to start the business [shopping for glasses] was a very medical experience. The optometrist we used to go to didn’t have a lot of passion for what they were doing, and the prices were unbelievably high. So, it was kind of a grudge purchase,” Perry says.&nbsp;Plus, having studied mechanical engineering, Perry could see that most optical frames were fairly inexpensive to manufacture – but sold with a huge mark-up. “I just thought it was extraordinary. It seemed like such a high margin."

Today, Bailey Nelson has evolved into a full-service optometry business, offering eyewear, retail, sunglasses, contact lenses and optometry services.Just as Winkle and Perry have taken an innovative approach to optometry, they have been similarly forward-thinking in their approach to payments, and, in 2018 Bailey Nelson became the first optical retailer to partner with Afterpay. Today, all their stores offer Afterpay or Clearpay.“We would recommend to every merchant that they should be working with Afterpay,” says Winkle.The business took on Afterpay after customers – especially younger customers – began asking for it, and at first, says Perry, they didn’t understand the value of the payments platform – or the younger generations’ aversion to credit. “I’m an older Millennial and I’ve always had credit cards,” says Perry. “So, I didn’t get it at the start. But you have to follow the younger customers – they are the trendsetters.”

Today, Afterpay allows Bailey Nelson customers to purchase glasses or other optical products when they need them and pay them off in instalments. Offering this kind of flexibility is critical for customer-centric brands, says Winkle, especially those in the health space.&nbsp;“Buying glasses is a necessity not a desire. People need them for work and home, so we believe it’s important to have different payment options.”And the Afterpay partnership has benefited Bailey Nelson, too. Customers who pay with Afterpay spend, on average, 10 per cent more than other customers at Bailey Nelson. They also shop more frequently with the brand. Meanwhile, Afterpay Day drives awareness and last year a 41 per cent spike in sales.“Afterpay has played an important role in our business journey up until this point and will so in the future.”

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How Nick Perry and Peter Winkle launched global optical business Bailey Nelson, and how Afterpay has helped them grow


How Nick Perry and Peter Winkle launched global optical retailer Bailey Nelson, and how Afterpay has helped them grow

Bailey Nelson's innovative vision for the optometrist indutry

Inside Bailey Nelson’s vision for a new type of optometrist

How design company Orbitkey landed on the perfect approach to Afterpay Day – and quadrupled its revenue as a result.

Announcing when a brand is having a sale is a fine art: do it too early, and you won’t be able to meet daily sales targets as people wait for the sale to begin; but do it too late, and you’ll miss out on a slew of new customers.For <a href="https://www.orbitkey.com.au/" rel="noopener noreferrer" target="_blank">Orbitkey</a> e-commerce and marketing lead Hans Suhartanto, there’s a magic number, which he figured out in the third year of participating in <a href="https://www.afterpay.com/en-AU/afterpay-day-merchants" rel="noopener noreferrer" target="_blank">Afterpay Day</a>.&nbsp;“Three to four days is a good time to announce that we’ve joined the event,” he says. “If we promote earlier, people will hold back. Three to four days strikes a balance between the customer knowing about Afterpay Day and also maintaining consistent daily sales.”

Preparation and clear communication are key. Suhartanto says his team prepares for Afterpay Day two months before the event, collecting assets and creating stories, videos, email content and posts that will be unleashed a few days before the event.“We do it mostly through our social channels, such as Instagram and Facebook, and we try different things each year,” he says.Afterpay gives brands<a href="https://www.afterpay.com/en-AU/business/afterpay-day-merchants/marketing-toolkit " rel="noopener noreferrer" target="_blank"> a banner to use during the promotion</a>, but Suhartanto believes companies must use their own style in order to differentiate themselves.“There are a lot of brands that participate in the event, so while useful, that makes the Afterpay asset similar. What works best for us is to combine the look and feel of Afterpay Day branding with our own style, such as our images and videos, so that the customer can understand our products and recognise them straight away.”

Suhartanto recommends promoting a brand’s distinct offerings clearly and prominently. “Make it easy for the customer to know which product is discounted. What works for us is a site-wide promotion using a single discount value of 15 per cent for most stock, except the newest releases.”

"What works best for us is to combine the look and feel of Afterpay Day branding with our own style..."

Because the event is short (four days), Suhartanto says it’s important to have a varied strategy, which includes paid advertising on social media alongside a brand’s own unique content.“There’s no room to test and learn on the day – you have to have it all organised beforehand to get the most value out of the event.”

The company also stands by <a href="https://www.afterpay.com/en-AU/business/access/email-marketing/how-to-build-an-email-list-from-scratch" rel="noopener noreferrer" target="_blank">email marketing</a>: converting a person who’s already signed up to the brand’s emails is much easier than someone who just “stumbles” on Orbitkey, Suhartanto advises.“Brand awareness means a potential pool of new customers, and we tend to target that group during Afterpay Day.”

Afterpay Day has not only increased awareness of the brand, with referrals from the Afterpay Shop Directory increasing by 7000 per cent, but quadrupled Orbitkey’s total revenue. &nbsp;“Afterpay is widely recognised by Australian consumers: it’s a trusted brand, and helps drive awareness online and offline,” Suhartanto says. "It's also similar in nature to Black Friday. It gives us a lot of impact.”

How design company Orbitkey landed on the perfect approach to Afterpay Day – and quadrupled its revenue as a result.

Orbitkey's perfect suite of marketing tactics tools enabled it to quadruple its revenue during Afterpay Day.

How Orbitkey approached - and won -Afterpay Day

Orbitkey’s three-pronged approach to Afterpay Day

How Orbitkey landed on the perfect suite of tools to promote Afterpay Day

Ana Piteira is the serial entrepreneur behind Blanca, Reliquia Jewellery and three other retail brands. She shares her tips.

You may not know her name, but you’re almost certainly familiar with Ana Piteira’s work. Her colourful, striped shirts have become a style staple – seen across Australia from bars to the beach – with a patchwork aesthetic that’s inspired countless imitations.And yet, incredibly, right up until the moment Piteira launched her fashion label <a href="https://blanca.shop/" rel="noopener noreferrer" target="_blank">Blanca</a>, she wasn’t sure it would be successful. “I just thought, ‘Let’s just put it online and see what happens. Maybe no one will like it.’”“Everything is quite experimental for me,” she continues.Blanca is the latest in a string of successful experiments for Piteira, who has established herself as one of Australia’s leading fashion entrepreneurs, having launched not one but four other brands – <a href="https://reliquiacollective.com/" rel="noopener noreferrer" target="_blank">Reliquia Jewellery</a>, <a href="https://valetstudio.com/" rel="noopener noreferrer" target="_blank">Valet Studio</a>, <a href="https://respiro.studio/" rel="noopener noreferrer" target="_blank">Respiro Studio</a> and <a href="https://www.instagram.com/aeyre_home/?hl=en" rel="noopener noreferrer" target="_blank">Aeyre Home</a> – as well as a public relations agency, <a href="https://www.suenocommunications.com/" rel="noopener noreferrer" target="_blank">Sueno Communications</a>.Of all her brands, Blanca is the biggest, and Reliquia, a cool-girl, gold jewellery brand, the most established. Together, all five businesses confirm Piteira’s talent for identifying trends and building brands. Recently, Piteira moved to a dedicated 400sqm warehouse in Sydney to accommodate growth.“I’m the kind of person who’ll say, ‘Yes’ and then work out how to do it later,” says Piteira of her ability to juggle five brands at once. “I just try and take every opportunity. I like learning on the job.”

“I’m the kind of person who’ll say, ‘Yes’ and then work out how to do it later.”

Building brandsA key part of Piteira’s success has been creating aspirational, distinctive – and distinct – brands. Early on, she decided that rather than launching one overarching business, offering jewellery, hair accessories and clothing, she would build individual brands, each with their own websites, social media followings and identities. Hence, Valet only produces hair accessories, Reliquia is known for gold jewellery and Aeyre only offers homewares.“Reliquia was the first brand [I built] and I thought it had a really strong aesthetic and identity,” says Piteira. “I didn’t want to dilute that when I introduced Valet, which was next. Valet involved different materials – it was predominantly resin and really colourful and bright. I thought there would definitely be overlap, but I didn’t know that [the two brands] would necessarily [attract] the same girl.”As it turned out, Reliquia performed strongly in Australia, whereas the more irreverent, playful Valet found greater international success, including with stockists like Selfridges and Liberty. “So, I think they are different customers and that ultimately it was the right decision to separate them,” she says.Using content to engage customersThe benefit of building separate brands is that whenever Piteira launches a new business, she cross-promotes it to customers of her existing brands using content.“We create a lot of content where we use the brands altogether and show the customer how it can be styled together. Our EDMs usually entail products from all our categories. We want to introduce our customers to the idea that we are a collective world, [and show that] you can seamlessly style everything together.”The importance of User-Generated ContentAs a public relations specialist, Piteira is, unsurprisingly, a huge proponent of PR. “I really believe in PR, obviously, but I think it’s an ever-changing environment. Its relevance is always shifting. When I started out it was all about print media. Now, it’s very much about digital and user-generated content (USG).”

"I really believe in PR, obviously, but I think it’s an ever-changing environment."

In fact, USG has played an important role in building all Piteira’s brands. “[User-generated content] is a ‘win-win.’ It’s really nice to see your brand being worn by different people in different ways… It’s a really fun and exciting way of getting content for a brand, [plus it’s amazing to see] the results it can drive.”However, she adds that <a href="https://www.afterpay.com/en-AU/business/access/social-media-tips/influencer-marketing-small-business" rel="noopener noreferrer" target="_blank">influencer</a> marketing and USG only works when it’s authentic. “I think the audience now is super savvy. So, it’s about [knowing] where your brand is resonating with its audience, and finding the right partners [to collaborate with].”Bricks-and-mortar benefitsTwo years ago, Piteira took her first steps into brick-and-mortar retail and opened a boutique in Sydney’s Westfield Bondi Junction. She views the store, which is bright and colourful, as “an extension of [our] online presence”.“I think the role of a physical store these days is quite different to how it used to be. It’s not only about the sales that you’re generating, it’s about having a showroom for your product where people can go and see, touch and feel the range,” she says, adding “I really do believe a lot of them go [into the store] and then purchase online”&nbsp;

“I think the role of a physical store these days is quite different."

Partnering wisely&nbsp;Along with <a href="https://www.afterpay.com/en-AU/business/access/social-media-tips/instagram-influencers" rel="noopener noreferrer" target="_blank">influencers</a> and a physical presence, carefully chosen stockists have also played a key role in amplifying the brands. “We’ve been focused on wholesale from day one,” says Piteira, who was able to draw on her experience and contacts from her sales and PR business to get her brands into retailers like The ICONIC and David Jones.&nbsp;“Stockists are really important in terms of being showrooms for your brand. There’s a customer discovery there that would perhaps not otherwise occur when you’re in different stores. I think it’s similar to working with <a href="https://www.afterpay.com/en-AU/business/access/social-media-tips/influencer-marketing-examples" rel="noopener noreferrer" target="_blank">influencers</a> – it’s nice to see your product in different stores and to see buyers buy from a different perspective.”Afterpay has been another key growth partner, says Piteira. “Afterpay is a really valuable service to a lot of customers. Customers love it, so in order to provide the best customer experience we partnered with [the BNPL platform].”Piteira adds that there is a natural alignment between her brands and the Afterpay customer. “I think Afterpay has done a really amazing job of capturing the retail market and our customer is a pretty trend-driven customer, too.”A renewed focus on <a href="https://www.afterpay.com/en-AU/business/access/customer-retention/customer-retention-rate" rel="noopener noreferrer" target="_blank">retention</a>Heading into 2023, Piteira intends to double down on <a href="https://www.afterpay.com/en-AU/business/access/customer-retention/customer-retention-strategies" rel="noopener noreferrer" target="_blank">retention</a> marketing. “We’re developing a <a href="https://www.afterpay.com/en-AU/business/access/marketing/customer-loyalty-program" rel="noopener noreferrer" target="_blank">loyalty program</a> and we’ll be focusing on communicating directly with our customer and giving them content that is interesting to them and that they want to engage with without necessarily only pushing product all the time.”With acquisition costs rising and <a href="https://www.afterpay.com/en-AU/business/access/boosting-profitability/preparing-for-inflation" rel="noopener noreferrer" target="_blank">inflationary pressures</a> growing, she says that the days of driving revenue by investing only in Google or social media ads are over. “It’s going to require so much more effort to not only engage customers but then retain them. We want to shift our focus to looking after our customers and making sure that we continue to provide them with a good experience time and time again – not just once."

Meet Ana Piteira, the serial entrepreneur behind Blanca, Reliquia Jewellery and more.

Ana Piteira, the serial entrepreneur behind Blanca, Reliquia Jewellery and more, explains why PR, stockists and USG are crucial to her brands' success.

Ana Piteira: The founder of Blanca, Reliquia, on launching six brands

The secrets to launching six successful businesses

Blanca Reliquia Ana Piteria

How making customers feel heard is the secret to Empress Athleticus’ success.

When it comes to buying clothes, women who are considered ‘plus-sized’ face more challenges than most, and no one knows that better than Brittany Lewin, a proud size 16-18 and the co-founder of activewear brand <a href="https://www.empressathleticus.com.au/" rel="noopener noreferrer" target="_blank">Empress Athleticus</a>.Lewin and her friend, lawyer Kristy Perdriau, launched Empress Athleticus (which offers activewear in sizes six to 30) in 2020, after becoming frustrated by the fashion industry’s attitude towards plus-sized women.

“Lots of brands talk about being body positive, but they do it because they have to, not because they want to,” says Lewin, who adds that, too often, plus-sized clothing is ill-fitting and lacking in style. Fed up with fashion brands co-opting the language of inclusivity without truly serving their plus-sized customers, Lewin and Perdriau were determined to prove that there was a market for high-quality, well-fitting activewear for all sizes.

They didn’t have to wait long. On the night that Empress Athleticus launched, the brand’s first batch of black garments sold out in less than an hour. The next batch sold out, too, and by the end of the brand’s first year in business, Empress Athleticus was turning over seven figures in sales.Today, with sales still growing month on month, the brand also boasts an impressively high 70 per cent monthly retention rate.<h2>Creating a close relationship with customers</h2>&nbsp;A large part of the brand’s success – and a major reason for its repeated sell-outs – is its close relationship with customers. “We really focus on retaining our customers and looking after them,” says Lewin. “It’s about quality versus quantity of customers.”

Key to this is a small but extremely loyal Facebook Group or ‘fan page’ that Lewin and Perdriau have cultivated around the brand. “They tell us what they want, how they want it and when,” explains Lewin of the 6000-strong group, which she describes as the brand’s “heart”.Whenever Empress Athleticus releases a new range, they showcase the collection to their Facebook Group first and offer it on pre-sale. Members also have the opportunity to ask questions or make suggestions.&nbsp;The group grew partly from Lewin’s personal social media following (as a businesswoman and plus-sized model she has 16,000 followers on Instagram and 24,000 on TikTok). However, she and Perdriau have also worked hard to promote the group and elicit feedback from customers. “We are always asking our customers for feedback. We value everyone and we have a suggestion at the bottom of every order that says: ‘Follow our fan page and give us your feedback’” says Lewin.“Any feedback is good,” she affirms, “good or bad – because you want to know how you can grow as a business.”

“Any feedback is good – good or bad – because you want to know how you can grow as a business.”

<h2>Fit and the feel-good factor</h2>Another key to Empress Athleticus’ success is the fit of its products. Unlike many brands that offer plus-sized garments that are simply ‘sized up’ from a cookie-cutter size six pattern and don’t take into account different body shapes, Empress Athleticus has a unique grading system. Developed after a decade of experience, "each size is tested and approved on our fit models, family, friends and feedback from customers,” says Lewin.&nbsp;The brand is also careful to ensure that garments are sized correctly and offer plenty of stretch so that customers don’t feel they need to choose a size up. “It’s about making customers feel comfortable and confident knowing they can purchase the same size no matter what product they choose.”This is also the rationale behind the brand’s authentic approach to photography, with many of Empress Athleticus’ products shot on Lewin herself, with minimal retouching."I leave all my cellulite in there – everything. It helps our customers feel more confident and comfortable to see a plus-size woman absolutely rocking her lumps and bumps. It’s really, really important to us.”

<h2>Leaning into change</h2>Early on in the business, Lewin noticed a bolt of leftover material and decided to experiment with making size-inclusive underwear. “I had a pattern in mind, and we decided to just make it and see what happened,” says Lewin. “And it sold out in 10 minutes. Everybody loved them.”Today intimates make up 40 per cent of the brand’s revenue, and Lewin says this success is a lesson in leaning into unexpected opportunities.<h2>Offering a range of payment options</h2>Afterpay has also played a major factor in Empress Athleticus’ success, with 40 per cent of customers using the buy now, pay later service.“I am personally a massive fan of Afterpay, and as a business owner I wanted to offer it to our customers,” says Lewin, who adds that events such as Support Small and Afterpay Day have become key dates in Empress Athleticus’ marketing calendar.“I know there are other companies like it out there, but Afterpay is just trusted,” she says. “If you don’t offer it as a business, you lose out on a massive demographic.”

How making customers feel heard is the secret to Empress Athleticus’ success

The co-founder of Empress Athleticus’ success Brittany Lewin explains how the plus-sized brand achieved success.

Empress Athleticus: the plus-sized brand making seven figures

The plus-sized brand that became a seven-figure success

Success story Empress Athleticus

Inside the success of men’s health platform Mosh.

It was bad enough to be experiencing hair loss in his early 20s, but when lawyer-turned-management-consultant Gabe Baker went searching for treatment, things somehow got worse.The large hair loss treatment clinics he visited turned out to be expensive and determined to lock him into a long-term contract. Plus, he adds, as a self-conscious young 20-something, “it was a fairly embarrassing experience walking into a hair loss clinic”.

"It was a fairly embarrassing experience walking into a hair loss clinic.”

Baker was sure there was a better way – and after talking it through with his flatmate, financial consultant David Narunsky, the pair decided to launch a business that offered hair loss consultations and treatments online using telehealth.“Bringing the whole model online solved a lot of the issues,” says Baker. “It meant you could [deliver the services] in a discreet way. And you also cut out all the real estate costs and could therefore offer a cheaper and more affordable solution to potential customers.”Providing home delivery for products made treatment even more convenient and discreet for customers. “You don’t even have to worry about going for repeat prescriptions or frequent visits to the pharmacy.”It was a neat end-to-end solution, but even Baker and Narunsky couldn’t have predicted how successful their business, <a href="https://www.getmosh.com.au/" rel="noopener noreferrer" target="_blank">Mosh</a>, would become.

Just five years since the pair dreamed up the idea from their Bondi flat, Mosh has more than 50,000 customers, attracted three rounds of investment and been valued at $90m. It has also expanded into other men’s health areas including weight loss, erectile dysfunction and mental health.&nbsp;“Guys are pretty bad when it comes to being proactive about our health care,” says Narunsky. “Mosh as a platform is focused on making men’s health easier.”<h2>Bootstrapping vs borrowing</h2>At first, Mosh grew thanks to Narunsky and Baker’s sheer determination (“We would come home every day with a passion to do a bit more. That passion or fire was always there.”) and their own savings.Looking back, the pair say that <a href="https://www.afterpay.com/en-AU/business/access/boosting-profitability/bootstrapping-business" rel="noopener noreferrer" target="_blank">bootstrappin</a>g was the right choice for them. “For me, finding the right product, and market fit and validating the concept before going out to market for funding makes a lot of sense,” says Narunsky.Later, their background in finance and management consultancy helped them structure the funding deals they secured for Mosh.<h2>Why marketing matters</h2>&nbsp;What neither Narunsky or Baker had experience in was marketing – and early on they admit they underestimated its importance.“We were overly focused on product and one of the big learnings for me is that you have to have a solid go-to marketing strategy in place as you’re building your product. Otherwise, you end up with a perfect product…but nobody knows about it.”

They quickly rectified this by making marketing one of their first hires, and today Mosh, which has a stylish, modern website, has a number of sports sponsorships in place to boost brand awareness.“It’s about entering into ‘purposeful partnerships’,” says Narunsky, pointing to Mosh’s sponsorship of Melbourne’s St Kilda Football Club, which has a dedicated mental health and wellness facility for players. “There’s a really nice alignment there between our mental health offering and what they have built.”<h2>How Mosh uses content throughout the funnel</h2>Another key marketing strategy is content. Today, Mosh offers an extensive database of engaging articles about men’s health. “We really try to break down the stigma surrounding a lot of the issues that we’re trying to treat.”Not only does Mosh’s content, delivered by <a href="https://www.afterpay.com/en-AU/business/access/email-marketing/what-is" rel="noopener noreferrer" target="_blank">email marketing</a> and <a href="https://www.afterpay.com/en-AU/business/access/social-media-tips/small-business-social-media-guide" rel="noopener noreferrer" target="_blank">social media</a>, keep the brand front of mind with customers, but it helps educate customers and raise awareness of additional products and services available on Mosh.“We’ve been able to start conversations… what’s really interesting is the majority of our customers are treating a condition for the first time. We’re really building out a new market here.”

<h2>Maintaining the right mindset</h2>Throughout Mosh’s business journey, Baker and Narunsky say that maintaining a positive mindset has been key. “Building a business is hard,” says Narunsky. “There are no free lunches! And we are operating a complicated business.&nbsp;“It’s highly regulated, there are lots of stakeholders – we’re dealing with medical professionals, we’re dealing with customers, we’re dealing with a range of different categories,” says Narunsky, adding that scaling and securing investment is also particularly challenging right now.“But I’m a big believer in having the right team, having the right mindset,” says Narunsky. Because if you’re in the entrepreneurial space, you’re going to be facing battles.”<h2>The pandemic push</h2>One battle that Mosh initially faced was convincing doctors and patients of the validity of telehealth.“Before the pandemic, we had to go and speak at conferences or events and we’d have to try and explain to people that it’s not illegal to consult your doctor online. We would always say, ‘Raise your hand if you know that you can speak to your doctor online’ and barely anyone would raise their hand.”The global pandemic changed all of that, says Baker.<h2>Partnering with Afterpay</h2>Another boost to the business has been Afterpay, which Mosh partnered with early on.“Our customers were demanding it as an option,” says Baker, who adds that offering Afterpay has increased Mosh’s reach. “It’s expanded the pool of available users to us because there’s a huge chunk of the population looking to shop online with flexible payment options.”

Inside the success of men’s health platform Mosh

Founders of men's health platform Mosh, Gabe Baker and David Narunksy, explain how they built their business, and how marketing and content fueled its growth.

Mosh: from Bondi bedroom to $90m business

From Bondi bedroom to multimillion-dollar business

Mosh success story 

Payment plans and premium pampering have been integral to the evolution of Milk and Honey

When Danielle Cohen first took over<a href="https://milkandhoneyhairandbeauty.com.au/" rel="noopener noreferrer" target="_blank"> Milk and Honey Hair and Beauty</a>, a salon on NSW’s Central Coast, her most popular services were the most “basic” cuts and treatments on offer.&nbsp;&nbsp;“We had clients paying about $80 for colour work, or even less, and that included a cut and blow-dry,” she recalls.Fast forward seven years and the needs, wants and budgets of her clientele have shifted dramatically. “We have clients who are paying $300 to $400 per appointment, and we’re doing a lot of blonde and balayage colour work.”Cohen credits the evolution of her salon, in part, to letting clients pay in instalments with <a href="https://www.afterpay.com/en-AU" rel="noopener noreferrer" target="_blank">Afterpay</a>.

“We [implemented] Afterpay about five years ago, to give clients more freedom around what they can and can’t [afford],” she says. “We wanted to bring in services that cost a little bit more. Being able to offer our clients payment plans helped us move in that direction.”&nbsp;Since then, the salon has significantly expanded, jumping from servicing 40 clients per week to between 80 and 120 today. Six hair stations have more than doubled to 14, and Cohen employs a team of eight.“Afterpay’s been a bit of a game-changer for us,” says Cohen. “It’s definitely contributed to our growth and success.”

<h3>A luxurious client experience</h3>Cohen bought Milk and Honey with her mum, Belinda, in 2015, with the intention of transforming the existing salon into something more special and sumptuous. They immediately renovated the space, located in the bustling regional centre of Gosford, by bringing in plush leather chairs and glamorous styling touches.The light and bright interiors serve more than just an aesthetic purpose – they help create a feel-good experience for the client. “We want our clients to come into a beautiful place where they can get away,” says Cohen. “We offer a boutique experience with a thorough consult, the best products – from L'Oréal and Kérastase – and wine and cheese platters.”Afterpay helps continue this smooth service all the way to the checkout. “We always quote our clients the full price for their appointment before we start,” notes Cohen. “But if they’re unsure about the price and we mention that we have Afterpay, they’ll often say, ‘That’s amazing, go ahead with the treatment’ ... It gives them that little bit of leeway so that they can say yes and spoil themselves, rather being worried about the payment. It's definitely created a comfort for our clients.”

<h3>Afterpay increases product sales and encourages repeat clients</h3>They’re the bane of hairdressers the world over: clients who come to the salon for premium treatments, but use poor-quality hair products at home. At Milk and Honey, Afterpay has proved a useful solution.“When we recommend home care, we’re finding that clients are more likely to [purchase] it with Afterpay," says Cohen. “If they’ve spent $200 to $400 on their hair, purchasing haircare might be an additional $150. So sometimes our clients pay for their hair service in full, and then use Afterpay to pay for the product.”With a payment plan, clients are often happier to commit to a longer-term, high-quality plan for the hair – which is a win for the clients and salon alike.“We’re not a one-stop salon, we're not going to push someone’s hair that far in one appointment,” says Cohen. “It’s about creating a plan for future visits to help clients achieve their goal. It’s going to be a bit more costly, but if the client knows that they have a payment option, they’re more willing to let you do their hair slowly and keep coming back.”

<h3>Afterpay encourages advance bookings and reduces cancellations</h3>Milk and Honey currently has a waiting list of 70 people, with December appointments almost fully booked up three months in advance.“Afterpay has encouraged a lot of clients to rebook their services, rather than being worried about whether they’ll have the money in the bank to pay,” says Cohen. “I think it’s also reduced people cancelling their appointments, for the same reason.”This has contributed to Milk and Honey’s growth (with Cohen noting that the salon has seen a particular rise in younger clients since the implementation of Afterpay), and offers peace of mind, too.“It's really good to have the comfort of the bookings and to know what your business will look like for the next three months,” says Cohen. “That way, I can put all my focus into looking after our staff and our clients.”

Payment plans and premium pampering have been integral to the evolution of Milk and Honey.

Gosford hair salon Milk & Honey has thrived thanks to buy now pay later platform Afterpay and premium pampering services.

How Milk & Honey doubled its clientele with Afterpay

How Afterpay helped this hair salon double its client base

Milk and honey hair salon L'Oreal 

A customer-first approach, luxurious experience and Afterpay have helped grow this Bendigo hair salon.

They say that location is everything, and that was certainly the case for <a href="https://www.hairfolk.com.au/" rel="noopener noreferrer" target="_blank">Hairfolk</a> founders Jemma Lea and Georgia Hosking.The pair had both worked as hairdressers for 15 years when Lea happened to spot a beautiful, vacant heritage building on the main street of Bendigo.“I drove past one day and saw that it was for lease and thought, ‘Oh my goodness, that would make such a great salon’. I called Georgia and was like, ‘Do you want to open a salon together?’”That was in 2018. Fast forward four years and their hairdressing salon Hairfolk is a huge success, welcoming 150 clients, including 20 first-timers, through its doors every week.

<h3>Growing the business</h3>Instagram played a huge role in the early days of Hairfolk. Although Lea and Hosking were able to bring their existing clients to Hairfolk, social media enabled them to showcase their work.“Having a good presence on <a href="https://www.afterpay.com/en-AU/business/access/social-media-tips/small-business-social-media-guide" rel="noopener noreferrer" target="_blank">social media </a>really kick-started the business. We knew Instagram was going to be a big part of our journey,” says Lea. “Obviously word of mouth and your reputation plays into success, but when people can actually see your work, it makes a big difference.”Right from the start, Lea and Hosking were also focused on offering more than just a haircut or treatment, and instead providing a luxurious, <a href="https://www.afterpay.com/en-AU/business/access/customer-service/customer-centricity" rel="noopener noreferrer" target="_blank">customer-centric</a> experience that clients would want to return to.

<h3>How Hairfolk puts clients first</h3>At Hairfolk, <a href="https://www.afterpay.com/en-AU/business/access/customer-service/customer-service" rel="noopener noreferrer" target="_blank">customer experience</a> is everything. Not only is the salon set in a striking heritage building, with sleekly luxurious and light-filled interiors, but upon arrival, clients can enjoy a complimentary espresso or glass of bubbles. When they’re ready to leave the salon, looking and feeling fresh, they can choose to use <a href="https://www.afterpay.com/en-AU" rel="noopener noreferrer" target="_blank">Afterpay</a>.“People want experiences and they're happy to pay for them,” says Lea. “When someone comes in after having their kids all day, or they’re with their girlfriends getting ready to go out, they want that extra luxury.”Lea understands that for many of her clients, a visit to the salon can be a vital act of self-care or a splurge they’ve been looking forward to for weeks. Afterpay allows clients to enjoy this experience while paying off the cost in instalments.&nbsp;

<h3>Afterpay enables high-end treatments</h3>Hairfolk is known for its on-trend offerings such as balayage and hair extensions – both of which can be costly, especially when specialist products are required for maintenance. Afterpay allows clients to pay for these services over time.“Afterpay is something we always wanted and needed within our business,” says Lea. “Particularly for those bigger jobs, like hair extensions, we definitely notice it can extend people’s spending further. Afterpay can be the difference between someone taking home some shampoo and conditioner or opting out completely.”When it comes to smaller services, like haircuts and blowouts, Lea says Afterpay can still be the reason their clients choose Hairfolk over other local salons. She also notes that the increased spending she sees from clients using Afterpay more than makes up for the product’s service fees.

<h3>Afterpay eases friction</h3>For the last six months, Hairfolk’s clients have been able to use Afterpay just by tapping their phone on the salon’s EFTPOS terminal. It’s a process that Lea believes further removes anxiety around spending money at the salon.&nbsp;With Afterpay, clients can just tap their phone and go, without the team even realising they opted to use the buy now, pay later service.&nbsp;&nbsp;“I definitely recommend Afterpay to other salon owners,” she says.When it came to building their business from the ground up, Lea and Hosking relied on the loyalty of their clients from previous salons, the curiosity of Bendigo locals (who are always keen to check out a new opening), and the power of social media.&nbsp;“Having a good presence on social media really kick-started the business. We knew Instagram was going to be a big part of our journey,” says Lea. “Obviously word of mouth and your reputation plays into success, but when people can actually see your work, it makes a big difference.”With thousands of followers, the Hairfolk Instagram account shows off the team’s best work and reminds the salon’s clients that Afterpay is available.

A customer-first approach, luxurious experience and Afterpay have helped grow this Bendigo hair salon

A customer-first approach, luxurious experience and partnering with Afterpay have helped grow Hairfolk, a Bendigo L'Oreal hair salon.

How Hairfolk salon keeps clients coming back

How Hairfolk keeps clients coming back

Their secret? Keeping their offering simple, classic and customer-focused

In a crowded market like fashion, you might imagine that every niche has already been discovered and filled. Not so, as mother-and-daughter duo Yolande Ellis and Elle Pugh discovered.“Seven years ago, you couldn’t find a good selection of cashmere garments anywhere in New Zealand or Australia, and certainly not year-round,” recalls Pugh, who had previously worked for global luxury brands in London.“We realised that with our changing climate and more people travelling to cooler climates throughout the year, there was a need for cashmere more regularly than just peak winter.”That was 2016, and, having spotted a gap in the market, the pair decided to make the leap and launch <a href="https://www.elleandriley.com/" rel="noopener noreferrer" target="_blank">Elle + Riley</a> from their garage.&nbsp;&nbsp;

At first Ellis, who had previously worked as a stylist and make-up artist, and Pugh assumed that the business would be purely direct-to-consumer e-commerce. But they quickly realised that as a luxurious, tactile product, cashmere was better suited to a bricks-and-mortar experience. “People needed to feel it and try it to fall in love with it, so we tried a pop-up store,” says Pugh.That store was so successful that the pair signed a lease on a permanent location just a few months later – and haven’t looked back.Six years later, Elle + Riley sells cashmere garments in six (soon to be seven) stores around NZ. They have 22 employees, a seven-figure turnover and 10,000 loyal customers, many of whom return to buy the same piece every season, in multiple colours.

Ellis and Pugh source their cashmere from Mongolia and garments are manufactured across Italy, Nepal and China.&nbsp;Pugh describes the typical Elle + Riley customer as someone who is more focused on quality classics rather than trend-driven silhouettes.“They’re discerning, travel a lot, are slightly more mature and can afford to invest in quality, given our basic sweaters start at $500. They’ll come in and buy their cashmere wardrobe set for their trip to Aspen or New York,” says Pugh.<h2>Bricks over clicks</h2>When Pugh and Ellis realised their business needed to have bricks-and-mortar stores in order to win over new customers, they didn’t hesitate.“We’ve been quite brave in terms of how fast we’ve expanded – six stores in six years.&nbsp;“That’s been an expensive and risky move and we’ve had to close some stores along the way, but it’s definitely helped us grow a lot faster and reach customers we otherwise might not have been able to,” says Pugh. “We haven’t been shy about being aggressive with our growth strategy.”

“We’ve been quite brave in terms of how fast we’ve expanded – six stores in six years."&nbsp;

<h2>Listen, rather than tell</h2>For the first four years, Pugh and Ellis spent most of their time on the shop floor, which helped them better understand their customers.“We’d work with the customers and listen – to what colours they wanted, what styles, what wasn’t fitting right… This allowed us to adapt and change things for them, making sure we were giving them what they wanted.”Pugh says that it quickly became apparent that Elle + Riley’s customers were more interested in classics than directional pieces. “What they really want is high-quality, classic garments in timeless shades like oatmeal and grey marle that they will get a lot of wear out of, so that has always remained our focus.

“Delivering what our customers want has actually given us freedom in that we don’t have to follow the seasonal fashion calendar or keep up with trends or go on sale the same time as everyone else.”<h2>Stick to your knitting</h2>Never has this saying been so apt… Pugh says that sticking to selling only cashmere garments means that their business proposition is crystal clear for customers.“We really stand by having one product and doing it well. We started with coffee table books and homeware in-store as well, but we ended up selling so much cashmere that we realised we needed to move those other items out,” she says.“It just comes back to us remembering to stick to our niche of what’s missing in the market, and for us that’s quality cashmere clothing.”&nbsp;<h2>Partner with the right suppliers</h2>When Shanghai went into lockdown for four weeks, so did Elle + Riley’s stock. Thankfully they could lean on another of their suppliers in Nepal to fill those gaps, but it reminded them of an important lesson: partnering with the right suppliers – and having more than one – is vital.“We’ve worked with some of our suppliers right from day one, however, we never want to put all our eggs in one basket,” she explains. “Having a few different suppliers, and ideally in different countries, has been important to us to mitigate risk.”

<a href="https://www.afterpay.com/en-NZ" rel="noopener noreferrer" target="_blank">Afterpay</a> has been a key commercial partner, says Pugh, who recognised its value early on. “I thought it was an awesome opportunity, especially for our price point. I like the fact that the customer doesn’t need to come into store to pay it off and that they can take their purchase straightaway, which is exciting for them, and we don’t have to store it.”Pugh adds that <a href="https://www.afterpay.com/en-NZ" rel="noopener noreferrer" target="_blank">Afterpay</a> has introduced younger customers to Elle + Riley, by allowing them to spread their payments in instalments. Afterpay events, such as Support Small, have also delivered new customers and sales. This year, the brand saw an 1890 per cent uplift in Afterpay sales thanks to Support Small.“Results like that are obviously brilliant for us, so off the back of that we’re doing Afterpay Day. I think it’s good to provide your customers with another way to be able to purchase from your business, and the tech behind Afterpay is really, really good.”Photos by Holly Burgess

Their secret? Keeping their offering simple, classic and customer-focused 

Discover the secrets to Elle + Riley's success from prioritising brick and mortar to listening to customers. 

Elle + Riley's Elle Pugh on opening seven stores in seven years

How Elle + Riley opened seven stores in seven years

Elle + Riley NZ

Incy Interiors is stocked around the world, and its success began with a smart marketing strategy.

Numerical Highlight List

When Kristy Withers’ son was 18 months old, she knew it was time to transition him from a bassinet to a ‘big boy’ bed. But when the style-conscious mother and marketing expert looked around, she couldn’t find anything resembling the dark brown iron bed frame she had in mind.&nbsp;At the time, she was traveling overseas for work regularly. “I was seeing all these amazing products overseas, stuff we just didn’t have in Australia,” she says. She quickly realised there was a gap in the market for beautiful interior products for kids, and it got her thinking.&nbsp;“I did a research project for eBay, and saw that the fastest growing industry was baby, home and online,” Withers recalls. “It was also just post-GFC, and everyone was entertaining at home more, becoming more house-proud. This, combined with the trend of women having children older and thus having a bigger disposable income made me think my idea wasn’t so dumb.”

After months of talking to anyone who would listen about it, her husband finally cracked and told her to just do it. And she did: in 2008, Withers settled on her first five cot and bed designs, and since then the company has sold nearly 100,000 products, with the average order costing $850. Today, the brand is stocked in more than 200 stores across nine countries – and Withers says they’re just getting started in an $8.5bn market.&nbsp;<h2>A marketing strategy makes a difference</h2>As the former head of marketing and advertising for eBay, Withers knew how to sell. Instead of calling publications to advertise ad hoc, she put together a 12-month package that included a media schedule, promos, giveaways and strategically timed ads.“Everyone else would just call up and say oh, we need ads tomorrow to make sales – that is not how I operated,” she says. It was this knowledge that got her off to a running start, even if logistics (“I just had no clue how much space you needed to store all the products!”) was still a mystery.&nbsp;“Having that corporate background and understanding how to target the right people with the right messaging is what really gave us an edge,” Withers continues. “I think a lot of people get lost here”.

"Targeting the right people with the right messaging gave us an edge.”

Another advantage of working in marketing was that Withers understood the importance of identifying and knowing your target market. Before she launched, Withers recalls going to all her friends – a group of young mums or women thinking about soon becoming mums – and getting their feedback about the whole design process.&nbsp;It was this market research that helped her hone Incy’s aesthetic, which Withers then reinforced across all the brand’s channels.&nbsp;“We have a different look to other kids’ furniture businesses – classic but cool – and that’s stood the test of time,” she explains.<h2>Don't be scared to change direction&nbsp;</h2>When Withers first conceived of her business model, she thought she would only sell direct to consumers. Yet after receiving a huge amount of interest from other stores wanting to stock her products, she decided to pivot.&nbsp;“Back then, I didn’t even know what wholesale was: I just thought I’d sell straight to consumers,” she laughs.But the key to any long-standing business, she says, is to be adaptable.

“We started off as a retail outlet, then quickly swapped to wholesale after I realised there was this whole opportunity there,” Withers says. “At the end of 2017, we had 200 stockists.”Unfortunately, soon after that, four out of the five major baby retail brands went into administration, and Incy Interiors went from being stocked in 200 stores to just 70. Burned, Withers pivoted back to retail and opened two stores (in addition to her website).<h2>How COVID-19 hit the cot business</h2>It wasn’t until last year that Incy began to be stocked in wholesalers again – a decision that Withers says was partly driven by COVID-19.“Since COVID, our direct marketing costs online have tripled: everyone was looking online, so the demand for those eyeballs went up,” she says. “So, when Baby Bunting approached us, we thought it would be a good chance to go back to wholesale.”Like so many other businesses, the company suffered from supply issues and steep price hikes over the last two years, a problem that’s ongoing even if people think COVID’s all over, says Withers.&nbsp;&nbsp;

"Container and shipping costs are four times what they were before the pandemic."

“Everything now just takes longer, and is harder and more expensive,” she says. “For example, container and shipping costs are four times what they were before the pandemic.” While the business has tried to absorb the costs by cutting out anything not 100-per cent necessary, Withers says they’ve had to raise prices slightly to compensate for the disruptions.&nbsp;&nbsp;Incy Interiors is now in the process of transforming from 95 per cent direct-to-consumer and 5 per cent wholesale to a 50/50 model due to both a rise in social media advertising costs and pandemic-related supply and logistics costs. But Withers concedes it’s important to remain open-minded.“People get so set on one business model and are not open to changing – I think that’s a mistake,” she says.

"People get set on one business model and are not open to changing – I think that’s a mistake."

Today, Incy Interiors is a staple brand in New Zealand and the UK, and will be operating in South East Asia from next month in countries such as Vietnam, South Korea, Singapore, Hong Kong and potentially Malaysia.<h2>Follow your gut&nbsp;</h2>Always on the hunt for new designs, Withers was looking at her rose gold watch when it occurred to her the colour would look amazing as a kids’ bed frame.“I got the factory to do some samples, but they just weren’t right. In the end, I posted my watch to them and told them that I wanted this exact colour.”Nine years later, it’s still one of Incy’s most popular styles: even tennis legend Serena Williams has one.<h2>Figure out if it’s a hobby or a business</h2>While in today’s hustle culture it seems anything can be monetised, Withers says you really need to consider whether your passion is a hobby or a business.

“It’s not a business unless you can make money out of it.”

“It’s not a business unless you can make money out of it,” she says.&nbsp; “If you love it and enjoy it, consider if you want to turn that into something that is extremely hard work. Turning a hobby that isn’t financially viable into a business is hard and relentless.”<h2>Afterpay is where the customers are</h2>During Afterpay’s early days, Withers noticed that her millennial staff were all raving about it.“My team is young – and the next generation of parents – so when I heard them talking about it, I decided to adopt it early,” Withers says. “Because I worked in the tech industry, I’m constantly on the lookout for new things to adopt.”&nbsp;&nbsp;Withers says Incy Interiors experienced an immediate spike in sales after adopting Afterpay and continues to generate a large amount of sales through the Buy-Now-Pay-it-Later service.

“Credit cards have dropped off, and Afterpay is now the fastest-growing payment method for the business,” she explains.Withers says every business should consider adopting Afterpay, as not only does it have significant brand awareness, but also makes expensive bedroom purchases achievable for families who may not be back to pre-baby income levels.“Most women are not back to full capacity financially when kids are coming to their first big bed, so it’s just helpful to have that option,” she says.&nbsp;

Incy Interiors is stocked around the world, and its success began with a smart marketing strategy.

Incy Interiors founder Kristy Withers shares the secrets of her baby brand's global success: the key tips that helped her build a savvy business model.