Categories
Brand Fashion Power brands

Skimming over the Success: SKIMS by Kim Kardashian

Within 24 months, Kim Kardashian’s shapewear brand has been built up into a $1.6 BILLION company.

In this blog post we are going to skim over SKIMS, and what has made the label such a success in a short space of time.

SKIMS launched in 2019 and instantly sold out of all stock at the time. In the past, Kim had loved wearing shapewear but realized there was a huge void when she couldn’t find anything that really worked for her. 

In turn, this created her market.

According to Grandview Research, the global shapewear market size was estimated at USD 2.26 billion in 2018 and is projected to expand at a CAGR of 7.7% from 2019 to 2025.

Kim had experimented with a lot of shapewear before launching her own brand, most of it probably coming from Spanx.

Kim identified her market fit, and brought a twist to this market. She offered unique colors of shapewear, plus-sizes, and the shapewear was made to compliment women’s outfits, and not so much to shape one’s body. 

A product she clearly wanted, which didn’t quite exist for her own personal needs. She harnessed her social prowess to catapult it to where it is, yes..

However, the products really do hold their own when you look across the board within women’s fashion. 

They have visible USP’s, interesting colour ways which stay true to Kim’s personal colour palette, and they offer a unique angle not exploited by other brands that sell shapewear.

 

After rinsing through their custom-coded website, stats for those who like to get ‘nerdy’ on the back end: 

After heading to their best-seller section, We found the average price of their top 4 best-selling products is $30. They also offer free USA shipping on orders over $75. Based on this, we would predict that their AOV is in the $60-70 range.

It’s high-quality shapewear, but at a reasonable price when benchmarking against the likes of Zara’s AOV. It fits in well with mid-tier brands, but with a ‘luxury’ touch, as it embodies Kim.

This makes for an easy impulse buy sale. Kim could have easily taken a steer from Kanye’s ever succesful Yeezy, and hit price points which could take her AOV beyond $100, as her name can pretty much do as she pleases, however when it comes to the scale she is seeing, it’s easy to see why when priced so competitively, and with it fitting in with the impulse buy notion. 

According to SimilarWeb, SKIMS receives 3.7M monthly visits to their website.

What’s next, is the most interesting part to take away from SKIMS success.

Let’s predict SKIMS’ revenue with our simple equation:

5M website visits x 2.5% CVR = 125,000 orders/month 125,000 x $60 AOV = $7,500,000 revenue per month!

But remember, Q4 and BFCM weekend is a whole different story for ecom businesses. We would estimate a $10m minimum month for the brand across Nov & Dec.

Not bad, Kim!

According to NY Times, SKIMS reported $145 million in sales during 2020, and expects to roughly double sales to $300 million this year in 2021, and based on the data we are seeing, we also expect this to hold true. 

$150M in one year, selling simple shapewear and comfy loungewear.

Categories
facebook ads IOS14 Power brands

WANT TO SOLVE YOUR IOS14 TROUBLES? DO THIS. TODAY.

This is a general announcement we have sent out to all of our brands today following recent updates from Facebook, and additional learnings we have seen over the past couple of days as we continue to stay at the very forefront of the environment for our brand partnerships benefit

We also thought we should make this a blog post for two reasons..

1. This stuff is killer content and deserves to be put out there, so why not.

2. Navigating ios14 has been a battlefield for everyone these past couple of months. In particular, we want to help the smaller brands that may not be able to afford an expert agency that has access to this type of information, and could really do with it to just stay afloat and survive in such times. We know it can help, and hopefully it does!

There are two main points to raise as an initial FYI:

1. IOS adoption has went up significantly with their latest forced IOS 14.6 update causing a higher opt-out rate causing a decrease in performance.

2. Starting June 30th, Facebook have CONFIRMED a positive update will be taking place. Facebook shall be expanding their use of conversion modelling to include it in their 7 day click default attribution setting. The inclusion of these new modelled conversions may result in a noticeable increase in 7-day click conversions, and overall ad account performance. Facebook are continuing to improve their machine learning models and expand their coverage of these new modelled conversions, in order for the platform to have greater transparency, of which has largely been lost of late, impacting our capabilities to scale budgets effectively.

With point 2, we certainly see a light at the end of the tunnel. The next few weeks will be bumpy but hopefully we’ll see a drastic improvement in July as anticipated since March.

In line with the above, we wanted to share what is working right now and shed light on a case study which could be modelled similarly for your brand..

The clients who are performing significantly well right now are releasing either new offers, promotions, collections/product ranges or re-structuring their offer/landing pages/sales process.

One brand of which has already hit $400k this month, due to some revamping and restructuring of offers.
A lot of this is driven by a sale that finishes end of this month.
They also don’t run sales often so the urgency/desire is very much real, and has caused a stir with their audience who want to fully take advantage of this FOMO inducing campaign.

It’s worth us mentioning that a nice portion of these returns have come from our email campaigns we put in place (money is, has been and always will be in the list long term – this is fully owned by you, and is one of the biggest assets a brand can have when software companies take the control away with such things like ios14). A well nurtured email list will always be a good weapon against change. (Of course with $0 attributed marketing spend to any returns seen here is also a huge plus point)

Here is a separate campaign which went out today for a completely different brand, which goes down a ‘secret sale’ avenue, with added benefits for taking part – something this brand has also never done, so causes high intrigue and uptake.

 

A lot is changing right now and we need to lean into it in every form we can.

– Borders, the world, physical businesses all opening back up

– Weather globally is getting warmer so less time spent online. General market seasonality always seen at this part of the year. 

– Money being spent locally again instead of online.

Therefore, creativity will play a huge level of importance this month…

We suggest to find genuine reasons to run sales, promos or campaigns right now to boost conversion rate and sales:

1. Fathers day

2. Summer sales

3. Revenge travel hype 

4. Flash sale (72 hours/1 week only) 

Evergreen is 100% taking a hit right now. It’ll only get worse before it gets better, so we are encouraging as above, to get creative with your strategies to make the most out of what we can right now, and drive performance to be as high as it can. 

*Photo of brand performance for June thus far – can clearly see when the campaigns went live*

 

 

We would encourage you to utilise this information as much as possible, and use it to get creative with how your brand could strategise this period.

 

Extra point of notice: 

We have noticed performance drop offs across accounts on 1st June. Since then there has been over a 40% increase of users updating to IOS14.5. Adoption rates are increasing fast as you can see: 

Therefore, this really is a time to be thinking different, rather than sitting around hoping to ride the wave.

Your ROAS will continue to be in a downtrend, your marketing budget will be stretched thin, and ultimately you will be leaving opportunity on the table.

We hope this helps, not only to help your brand survive ios14 and the multiple updates Apple are putting out there onto brands, but ultimately we hope this helps your brand thrive, and outpace your competition in such volatile times.

 

 

Categories
Brand facebook ads Fashion

The 2020 King Content Strategy For Brand Scale.

Ads on YouTube, Facebook and Instagram are today deemed the most annoying.

This is according to Business Insider Intelligence’s recent Digital Trust Survey.

Why?
Well that’s simple.

People don’t like being advertised to, especially when they want to scroll and find new inspiration from their favourite bloggers, escape for 10 minutes on a lunch break, play the latest Justin Bieber music video, or see what those they love have been up to.
It’s irritating, and a primary barrier to what they are on the platform to see, and experience.

The results of this survey should come as a wake-up call to marketers and brand owners alike still unsure about native content, or focussing more on the natural, stripped back approach to marketing vs the glossy magazine cover-esque pieces of creative.

So, what’s the solution?

Based off our recent results across our brand partnerships and client portfolio, the fuel for the most recent ROI experienced has been user generated content.
In the last 3 months especially, this has been the primary driver behind results both on an engagement, organic level, but also on the paid advertising front.

Our ethos is simple, and the types of conversations we have been having recently looks a little like this..

Integrate with content your target customers love to see, and be a part of the reason they are on the platform.
Be native.

Don’t be a 1990’s yellow pages advert plastered in the middle of an Instagram feed.

You’ll lose out.

If your marketing is in a designated advert, in between your target customer and the content they want to watch, undoubtedly it will be glanced over or not given attention. Your CTR will be sky high, even on the editorial you spent hours on end in a studio developing, tweaking and editing.
Not to mention the cost for producing your glossy ad.

It just won’t generate interest, and your marketing spend will be wasted because you are going against your consumers’ psychology and frame of mind at that given moment.

Integrate your message into user generated content, and become an intrinsic, flowing piece of the platform experience.

Here’s our top reasons why UGC is the way forward for brands that want to scale:

 

1. It’s the human touch

As above, people don’t want to be advertised to. They don’t want to be bombarded by marketing messages and they most certainly don’t want your ad interfering with their user experience on Instagram, Facebook or YouTube.

User generated content goes against ‘marketing’.

It’s a natural, aesthetically on point piece of content that creates a feeling.

A feeling that is in line with who your customer wants to be, how they want to feel, and the desire they have when it comes to the ‘why’ they would buy from your brand.

Here’s the thing: People trust people.

People want to relate with people.

This has been one of our key mantra’s when it comes to strategy calls of late with our clients, especially those in the fashion space.

Those that have adopted this strategy and nailed in on the UGC space to their advantage, have seen all time high conversion rates and revenues reported for the months of July and August consistently.

Instead of scrolling through websites that only tell you their ‘halo’ version of the product, people now prefer a natural, vibey conversation coming through from what they see from brands.

What they crave, essentially, is the human touch to an otherwise lifeless, staged, over-edited piece of content. UGC content provides precisely that – the human element.

It shows the product for what it is, the brand for the feeling they create with a no holes barred approach, and the customers for the community they generate.

Seeing a similar person to you, or a respected influencer wearing the new line is the best way to demonstrate your product to would-be-buyers. It’s the pairing of valuing perspectives of their fellow customers, hand in hand with an unfiltered view of your product in a real world use, often in a real world environment.

This is what UGC provides your brand: The much needed, and much desired help that prospective customers understand the product inside and out, and they get to know what to expect before they even land on the product page.

2. Customer Experience Is Accentuated 

Consider that you have been using the same angles of content for the past 6 months.

Your ads may very much be experiencing ad fatigue, because your product only shows so much.

It shows one angle, repeatedly: Your angle as those behind the brand day to day.

You have yet to mix this up and twist things into the angle you really need to be portraying as priority: Your customer’s view when they have the product.

When this switches up, your intended customer will see something a little like this…

They open up Instagram, scroll along and then get hit with a native ad that speaks the same language as those in which they follow, almost as if the ad they are seeing has been posted by one of their close friends.

Immediately they have minor emotions tied into the creative, and they are getting a sense of feeling with your brand.

The piece of content shows your brand in a native and natural form, and in a way studio content just cannot relay in the same way.

Suddenly, the product has new life to it, a new portrayal, and a new value proposition in the eyes of your consumer.

A different view, creates different reactions. 

They are now viewing someone experience the product in real life and validate all its claims, as opposed to just hearing them.

In short, your consumer is already experiencing the product, and in turn they get convinced that it’s as good as you say it is, and it does exactly as what that customer would expect from a product.

User-generated content adds a dash of authenticity and reverberates with the customer in the most natural form.

It’s a buying accelerator like no other.

3. It Converts 

User generated content drives sales like no other.

When people see for themselves how a product has impacted the life of someone else, and someone they identify with, they begin to find ways the product can help them, and starting selling the product to themselves.

In turn, this creates a higher CTR and traffic generation from this type of content compared to any other because it’s so identifiable.

The metrics align perfectly for any brand looking to scale, because UGC generates interest and more ‘scroll stopping’ than an ad that doesn’t look like it belongs.

It’s why people skip the adverts immediately when they come on T.V. between their favourite show – they know it’s not going to be relevant or personally tailored to them.

It’s another annoying barrier before they get to what they really want to see, and the reason why they are watching T.V. in the first instance.

However, if those adverts were people you adored and identified with showing off their latest buys in the most natural way, you may just hear them out.

Brands get far more bang for their spend, because their spend isn’t being wasted on people scrolling past, but rather the spend on the content is now getting clicks, and clicks create conversions.

You may end up buying something you do not need at all, or find something you may have passed up on initially, because it directly impacted you on an emotional level – it’s not just another advert. 

User-generated content consciously and subconsciously alters buying patterns and increases eCommerce sales twofold with brands who have lacked in that department historically.

Every marketing metric that aligns to sales, rises in all the right areas, and it’s clear to see why.