Earlier this month, Kim Kardashian’s attire firm Skims made headlines after closing a $270 million fundraising spherical, reaching a valuation of $4 billion. In a enterprise local weather the place VCs are pulling again funding from direct-to-consumer manufacturers, this accomplishment is kind of the feat for a four-year-old enterprise.
Skims initially launched in 2019, providing shapewear and intimates. The corporate has since expanded its product line to incorporate clothes, loungewear, swimwear, and child’s objects. This yr, Skims is on monitor to usher in $750 million in gross sales, up 50% from 2022.
The model skilled mega-growth by good positioning in entrance of its preferrred clients, 70% of whom are millennials and Gen Z. Proceed studying to be taught the advertising strikes that helped Skims attain unicorn standing 4 occasions over.
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Skims Advertising Methods
Profitable on Social
Instagram is Skims’ prime social media channel. With over 5.2 million followers, the model usually takes to Instagram to announce new product launches and social campaigns.
Wanting by the feedback on the Skims Instagram account, it additionally seems to be a customer support channel the place consumers give suggestions about what merchandise they’d wish to see and inquire about when merchandise shall be again in inventory.
It’s additionally value noting the recognition of Skims merchandise on TikTok. Although the official Skims account on TikTok has 1.1 million followers, the model’s principal advertising energy on the platform is seen by phrase of mouth and user-generated content material.
Every day customers publish their hauls and evaluations of Skims merchandise on TikTok, producing buzz for the model. Customers sharing Skims “dupes” is one other common area of interest on TikTok, which nonetheless drives notoriety and demand for the unique merchandise.
Electronic mail Advertising That Converts
Along with social, Skims additionally makes use of e mail advertising to drive gross sales. On common, the model sends 5 emails per week to its record saying new product drops, restocks of common merchandise, retail collaborations, and direct CTAs to buy.
Shortage Advertising
The extra uncommon an merchandise is, the upper its perceived worth. That is the legislation of provide and demand out of your Econ 101 class — a key think about shortage advertising that Skims has leveraged to drive gross sales.
The model has been recognized to drop new and common objects in restricted portions making coveted objects promote out shortly. This drives those that missed out on the preliminary run to start following the model extra carefully to allow them to be alerted when the product is again in inventory, encouraging them to buy as quickly because the product is out there.
Strategic Partnerships and Endorsements
Skims has participated in a number of partnerships which have gotten individuals speaking. Its 2021 co-branded assortment with Fendi introduced in $1 million in gross sales only one minute after it launched. The model additionally parted with the Olympics in 2020 and 2022, outfitting Staff USA in a capsule assortment of loungewear and sleepwear.
The endorsements have additionally discovered their approach into Skims promoting.
Earlier this yr two common actors from the tv present The White Lotus, Simona Tabasco and Beatrice Grannò, starred in a marketing campaign selling Skims’ Valentine’s Day assortment shortly after the present’s finale.
Final yr, the model 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 model’s millennial clients who grew up procuring at Victoria’s Secret and watching fashions stroll within the controversial model’s vogue exhibits.
Whereas Kardashian’s affect has positively impacted Skims’ enterprise success, the model’s future wouldn’t be as vivid with out well-executed, multi-channel advertising. With this newest spherical of fundraising, Skims is well-positioned to increase its product line and probably IPO.
