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 sort 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 gadgets. This 12 months, Skims is on observe to usher in $750 million in gross sales, up 50% from 2022.
The model skilled mega-growth by means of sensible positioning in entrance of its splendid clients, 70% of whom are millennials and Gen Z. Proceed studying to be taught the advertising strikes that helped Skims attain unicorn standing 4 instances over.
Skims Advertising and marketing Methods
Successful on Social
Instagram is Skims’ high 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 means of 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 prefer to see and inquire about when merchandise will likely 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 essential advertising energy on the platform is seen by means of phrase of mouth and user-generated content material.
Every day customers submit their hauls and opinions of Skims merchandise on TikTok, producing buzz for the model. Customers sharing Skims “dupes” is one other standard area of interest on TikTok, which nonetheless drives notoriety and demand for the unique merchandise.
E-mail Advertising and marketing 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 listing saying new product drops, restocks of standard merchandise, retail collaborations, and direct CTAs to buy.
Shortage Advertising and marketing
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 identified to drop new and standard gadgets in restricted portions making coveted gadgets promote out rapidly. This drives those that missed out on the preliminary run to start following the model extra intently 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 folks 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 Group USA in a capsule assortment of loungewear and sleepwear.
The endorsements have additionally discovered their manner into Skims promoting.
Earlier this 12 months two standard 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 12 months, 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 purchasing at Victoria’s Secret and watching fashions stroll within the controversial model’s trend exhibits.
Whereas Kardashian’s affect has positively impacted Skims’ enterprise success, the model’s future wouldn’t be as shiny with out well-executed, multi-channel advertising. With this newest spherical of fundraising, Skims is well-positioned to broaden its product line and probably IPO.