Previous this month, Kim Kardashian’s attire corporate Skims made headlines after final a $270 million fundraising spherical, achieving a valuation of $4 billion. In a industry local weather the place VCs are pulling again funding from direct-to-consumer manufacturers, this accomplishment is reasonably the feat for a four-year-old industry.
Skims to begin with introduced in 2019, providing shapewear and intimates. The corporate has since expanded its product line to incorporate clothes, loungewear, swimming gear, and child’s pieces. This 12 months, Skims is on course to usher in $750 million in gross sales, up 50% from 2022.
The emblem skilled mega-growth thru good positioning in entrance of its supreme shoppers, 70% of whom are millennials and Gen Z. Proceed studying to be told the promoting strikes that helped Skims achieve unicorn standing 4 occasions over.
Skims Advertising Methods
Successful on Social
Instagram is Skims’ best social media channel. With over 5.2 million fans, the logo continuously takes to Instagram to announce new product launches and social campaigns.
Having a look throughout the feedback at the Skims Instagram account, it additionally seems to be a customer support channel the place consumers give comments about what merchandise they’d like to look and inquire about when merchandise might be again in inventory.
It’s additionally value noting the recognition of Skims merchandise on TikTok. Even though the reputable Skims account on TikTok has 1.1 million fans, the logo’s primary advertising energy at the platform is noticed thru phrase of mouth and user-generated content material.
Every day customers put up their hauls and evaluations of Skims merchandise on TikTok, producing buzz for the logo. Customers sharing Skims “dupes” is any other standard area of interest on TikTok, which nonetheless drives notoriety and insist for the unique merchandise.
E-mail Advertising That Converts
Along with social, Skims additionally makes use of e mail advertising to force gross sales. On moderate, the logo sends 5 emails a week to its listing pronouncing new product drops, restocks of standard merchandise, retail collaborations, and direct CTAs to buy.
The extra uncommon an merchandise is, the upper its perceived worth. That is the legislation of provide and insist out of your Econ 101 elegance — a key think about shortage advertising that Skims has leveraged to force gross sales.
The emblem has been identified to drop new and standard pieces in restricted amounts making coveted pieces promote out temporarily. This drives those that ignored out at the preliminary run to start out following the logo extra carefully so they are able to be alerted when the product is again in inventory, encouraging them to buy as quickly because the product is to be had.
Strategic Partnerships and Endorsements
Skims has participated in different partnerships that experience gotten other folks speaking. Its 2021 co-branded assortment with Fendi introduced in $1 million in gross sales only one minute after it introduced. The emblem additionally parted with the Olympics in 2020 and 2022, outfitting Crew USA in a pill selection of loungewear and sleepwear.
The endorsements have additionally discovered their method into Skims promoting.
Previous this 12 months two standard actors from the tv display The White Lotus, Simona Tabasco and Beatrice Grannò, starred in a marketing campaign selling Skims’ Valentine’s Day assortment in a while after the display’s finale.
Closing 12 months, the logo ran a marketing campaign that includes former Victoria’s Secret fashions from the 90s and 2000s — a transfer that performed up nostalgia advertising for the logo’s millennial shoppers who grew up buying groceries at Victoria’s Secret and observing fashions stroll within the debatable logo’s style presentations.
Whilst Kardashian’s affect has definitely impacted Skims’ industry good fortune, the logo’s long term wouldn’t be as brilliant with out well-executed, multi-channel advertising. With this newest spherical of fundraising, Skims is well-positioned to amplify its product line and probably IPO.