GOAT is providing a transparent, responsible way to pay for sneakers
'Sneakers are like an investment'
Goal: Find a financing partner that was 100% transparent and safe for their customers.
Sneakerhead culture has exploded in the past five years, turning the secondary market for collectable kicks into a billion-dollar industry. And no wonder. A pair of Nike Air Yeezy 2 Red Octobers, for instance, which originally retailed for $250, now commands upwards of $5,000.
Others, such as the Nike Dunk SB Pigeons and Air Jordan 2 Eminems, have seen their values increase by a whopping 2,729 percent and 3,285 percent respectively. Ashton Kutcher and epic VC firm Andreessen Horowitz, among other investors, saw the light and put their sneaker marketplace bets on GOAT. Priding itself on authentication, superior service and buyer protection, GOAT started in January after its Co-founder Daishin Sugano bought illegal knock-offs of OG Air Jordan 5 Grapes, much to his chagrin.
To protect buyers and sellers, every sneaker sold on GOAT goes through a meticulous verification process, by a team of specialists who inspect everything from a sneaker’s stitching and logo, to its texture and color.
Affirm’s impact on GOAT’s business
And the company allows customers to return any falsely advertised item directly to GOAT without ever having to deal with the seller. Authentication and great service aside, the sneakers’ price tags presented a challenge to some consumers.
“Most of our customers are Millennials, who don’t trust or use credit cards, and usually don’t have lots of cash on hand,” said Sen Sugano, who heads up marketing and growth at Los Angeles-based GOAT. “We needed a way to help them acquire the rare sneakers they’re so passionate about, but do it in a way that’s honest and safe for them. Sneakers are like an investment for many and they appreciate the option to pay with Affirm.”
Affirm increases sales & revenue for GOAT
GOAT took a close look at payment options like PayPal’s Bill Me Later and Europe’s Klarna, but quickly rejected them for Affirm. “We wanted a partner that offered a simple solution and was 100 percent transparent, so Affirm was the clear winner for us,” said Sugano. “It’s just a more responsible way for our customers to borrow.”
GOAT saw a 25 percent increase in sales conversion after the first month of offering Affirm, and a 30 percent boost in average order values. And Sugano attributes much of the company’s steady increase in repeat buyers month over month to Affirm.
“We get positive feedback about Affirm in emails all the time,” said Sugano. “Our customers are very happy."