Marketing Moves That Helped Skims Reach A $4 Billion Valuation

Earlier this month, Kim Kardashian’s apparel institution Skims made headlines aft closing a $270 cardinal fundraising round, reaching a valuation of $4 billion. In a business ambiance wherever VCs are pulling backmost finance from direct-to-consumer brands, this accomplishment is rather nan feat for a four-year-old business.

Skims initially launched successful 2019, offering shapewear and intimates. The institution has since expanded its merchandise statement to see clothing, loungewear, swimwear, and kid's items. This year, Skims is connected way to bring successful $750 cardinal successful sales, up 50% from 2022.

The marque knowledgeable mega-growth done smart positioning successful beforehand of its perfect customers, 70% of whom are millennials and Gen Z. Continue reference to study nan trading moves that helped Skims scope unicorn position 4 times over.

Skims Marketing Strategies

Winning connected Social

Instagram is Skims’ apical societal media channel. With complete 5.2 cardinal followers, nan marque often takes to Instagram to denote caller merchandise launches and societal campaigns.

Looking done nan comments connected nan Skims Instagram account, it besides appears to beryllium a customer work transmission wherever buyers springiness feedback astir what products they’d for illustration to spot and inquire astir erstwhile products will beryllium backmost successful stock.

It’s besides worthy noting nan fame of Skims products connected TikTok. Though nan charismatic Skims account connected TikTok has 1.1 cardinal followers, nan brand’s main trading powerfulness connected nan level is seen done connection of rima and user-generated content.

Each time users station their hauls and reviews of Skims products connected TikTok, generating buzz for nan brand. Users sharing Skims “dupes” is different celebrated niche connected TikTok, which still drives notoriety and request for nan original products.

Email Marketing That Converts

In summation to social, Skims besides uses email trading to thrust sales. On average, nan marque sends five emails per week to its database announcing caller merchandise drops, restocks of celebrated products, unit collaborations, and nonstop CTAs to purchase.

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Scarcity Marketing

The much uncommon an point is, nan higher its perceived value. This is nan rule of proviso and request from your Econ 101 people — a cardinal facet successful scarcity marketing that Skims has leveraged to thrust sales.

The marque has been known to driblet caller and celebrated items successful limited quantities making coveted items waste retired quickly. This drives those who missed retired connected nan first tally to statesman pursuing nan marque much intimately truthful they tin beryllium alerted erstwhile nan merchandise is backmost successful stock, encouraging them to acquisition arsenic soon arsenic nan merchandise is available.

Strategic Partnerships and Endorsements

Skims has participated successful respective partnerships that person gotten group talking. Its 2021 co-branded postulation pinch Fendi brought successful $1 million successful income conscionable 1 infinitesimal aft it launched. The marque besides parted pinch nan Olympics successful 2020 and 2022, outfitting Team USA successful a capsule postulation of loungewear and sleepwear.

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The endorsements person besides recovered their measurement into Skims advertising.

Earlier this twelvemonth 2 celebrated actors from nan tv show The White Lotus, Simona Tabasco and Beatrice Grannò, starred successful a campaign promoting Skims’ Valentine’s Day postulation soon aft nan show’s finale.

Last year, nan marque ran a run featuring erstwhile Victoria’s Secret models from nan 90s and 2000s — a move that played up nostalgia trading for nan brand’s millennial customers who grew up shopping astatine Victoria’s Secret and watching models locomotion successful nan arguable brand’s manner shows.

While Kardashian’s power has positively impacted Skims’ business success, nan brand’s early wouldn’t beryllium arsenic agleam without well-executed, multi-channel marketing. With this latest information of fundraising, Skims is well-positioned to grow its merchandise statement and perchance IPO.