In January 2022, Kim Kardashian‘s shapewear and loungewear brand Skims made headlines when it announced a $240 million financing round led by hedge fund Lone Pine Capital. The deal valued Skims at a whopping $4.3 billion – an astonishing figure for a company that was only three years old at the time.
To put that in perspective, Skims is now worth more than established intimates brands like Spanx ($1.2 billion) and Savage X Fenty ($1 billion), despite being a relative newcomer to the industry. So how did a celebrity-backed startup scale so quickly to become one of the most valuable private apparel companies in the US?
While Kardashian‘s star power certainly gave Skims an initial boost, the brand‘s continued success has been driven by a series of strategic marketing moves that have converted the founder‘s fans into loyal customers and captured an outsized share of the $16.9 billion global shapewear market. Here‘s a closer look at the tactics that turned Skims into a multi-billion dollar brand.
Rapid Growth Through Category Expansion
Skims launched in 2019 with a small collection of shaping briefs and bodysuits catering to Kardashian‘s existing audience. But the brand quickly expanded beyond its core shapewear offerings to become a one-stop shop for innerwear, loungewear and even outerwear (including swimsuits, dresses and puffer coats).
By regularly releasing new product categories and colorways, Skims kept customers engaged and gave them more reasons to shop. The brand now drops over 30 new collections per year and has sold over 6 million units to date.
This rapid product diversification has fueled Skims‘ exponential growth:
| Year | Revenue |
|---|---|
| 2019 | $2.2 million |
| 2020 | $145 million |
| 2021 | $300 million |
| 2022 | $500 million (projected) |
Skims shows no signs of slowing down. In 2023, the company plans to open its first brick-and-mortar stores, launch a men‘s line, and continue expanding into new categories like activewear and skin care. By becoming a lifestyle brand that covers all aspects of customers‘ lives, Skims has increased its addressable market and created more avenues for growth.
Building Community Through Social Media
No discussion of Skims‘ success would be complete without mentioning social media. The brand has cultivated a highly engaged online community, with over 4.6 million followers on Instagram and 1.4 million on TikTok (outpacing competitors like Spanx and Honeylove).
Skims‘ social media content spans the gamut from aspirational campaign imagery to down-to-earth customer testimonials, all unified by a message of body positivity and inclusivity. User-generated content is a major part of the mix, with customers enthusiastically sharing their Skims hauls and tagging the brand for a chance to be featured.
This steady stream of social proof serves as powerful word-of-mouth marketing for Skims. According to a 2022 survey by retail analytics firm Edited, 36% of Skims customers first heard about the brand through social media – a testament to the impact of its digital presence.
Skims also uses social listening to stay attuned to customer feedback and inform product development. For example, the brand‘s "Fits Everybody" collection of underwear and loungewear was created in response to customers requesting more inclusive sizing (it goes up to 4X). By engaging in two-way communication with its community, Skims has built a loyal fanbase that feels invested in the brand‘s success.
Driving Urgency Through Drops
Another key aspect of Skims‘ marketing strategy is its use of product drops and limited-edition collections to generate buzz and urgency. The brand is known for releasing small batches of new styles that sell out quickly, often within hours or even minutes.
This scarcity fuels FOMO (fear of missing out) and prompts customers to act fast or risk losing their chance to snag the latest must-have item. Skims promotes upcoming launches heavily on social media and email, building anticipation and driving traffic to its website.
The limited nature of these drops also creates a sense of exclusivity and community among those lucky enough to score a piece. Customers proudly share their purchases on social media, sparking envy and desire in those who missed out (and making them more likely to jump on the next release).
Skims‘ most successful drop to date was its collaboration with luxury fashion house Fendi in October 2021. The limited-edition capsule featured shaping bodysuits and underwear adorned with Fendi‘s iconic logo print, with prices ranging from $100 for bikini briefs to $4,200 for a leather dress.
Despite the steep cost of entry, the collection sold out almost instantly and generated over $1 million in sales within the first minute of launch. The collab introduced Skims to a new audience of luxury consumers and cemented its status as a serious player in high fashion.
Converting Customers Through Email Marketing
While social media drives awareness for Skims, email marketing is the brand‘s not-so-secret weapon for converting followers into paying customers. Skims has a robust email strategy, sending an average of 5.5 campaigns per week (more than 2X the retail industry average).
These emails span the full marketing funnel, from newsletters highlighting new launches and best-sellers to post-purchase messages like order confirmations and shipping updates. Skims also sends segmented campaigns based on customer behavior, such as abandon cart reminders and "back in stock" notifications for popular items.
This multichannel approach keeps Skims top-of-mind and provides multiple touchpoints for driving sales. And it seems to be working: Skims‘ email open rate is an impressive 46.6%, well above the 21.6% average for apparel brands. The company‘s conversion rate is also strong at 4.1%, indicating that subscribers are highly engaged and ready to buy.
One particularly effective type of email is the "waitlist" campaign, which Skims sends to customers who requested to be notified when a sold-out item is restocked. These emails create a sense of exclusivity and reward customers for their loyalty, making them feel like VIPs with early access to coveted products.
By building an owned audience of opt-in subscribers and nurturing them with personalized content, Skims has created a powerful sales channel that drives repeat purchases and customer lifetime value.
Leveraging Celebrity Star Power
Of course, no discussion of Skims‘ success would be complete without mentioning the power of its famous founder. As one of the world‘s most recognizable celebrities with over 320 million Instagram followers, Kim Kardashian‘s endorsement lends instant credibility and exposure to anything she touches.
Kardashian is intimately involved with Skims and regularly models the products on her personal social media channels, which serve as an organic source of high-profile advertising for the brand. Her posts featuring Skims garner millions of likes and comments, introducing the brand to her massive audience.
Skims also capitalizes on Kardashian‘s celebrity network for star-studded campaigns. In 2022, the brand tapped supermodels Heidi Klum, Alessandra Ambrosio, Candice Swanepoel and Tyra Banks for a nostalgic Mother‘s Day ad that broke the internet. Other famous faces who have fronted Skims campaigns include Megan Fox, Kourtney Kardashian and Kate Moss.
But Skims‘ success is about more than just star power. The brand has been intentional about leveraging Kardashian‘s platform to tell a larger story around empowerment, body positivity and redefining cultural beauty standards. For a generation of millennials and Gen Zers who grew up idolizing Kardashian, Skims offers the tantalizing promise of achieving her enviable curves and confidence – all while being comfortable in your own skin.
The Future of Skims
As Skims enters its next phase of growth, the company shows no signs of resting on its laurels. In March 2023, the brand announced its biggest retail partnership to date with mega-retailer Target. The Skims x Target collection will feature a range of size-inclusive underwear, loungewear and shapewear priced from $10-$42, making Skims accessible to an even wider audience.
Industry experts predict the collaboration could generate $80-120 million in wholesale revenue for Skims, further fueling its rapid ascent. And with plans to expand internationally (Skims recently launched a Canadian website) and enter new product categories, the sky seems to be the limit for Kardashian‘s burgeoning empire.
But even as Skims scales, the brand remains committed to the customer-centric marketing approach that made it successful in the first place. By continuing to engage with its community, deliver value through exclusive drops and leverage Kardashian‘s platform for good, Skims is well-positioned to maintain its impressive growth trajectory and reshape the intimates industry for years to come.
