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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
Brand Fashion Power brands

Like A Phoenix: How Puma rose from the ashes.

Puma. A brand we are all familiar with. Founded in 1948, they have been an ever-present in the sports scene, adorning sports shops worldwide and boasting heavy endorsement deals over the past 3 decades in multiple industries. 

For Puma, basketball was and still is, a key facet of their brand.

However, their first attempt at the lucrative scene of NBA fell way short of competitors, and sent Puma down the pecking order of consumers minds, against the likes of Nike and Adidas, who conquered for years.

Before Nike popped up onto the scene, Puma was the power player, almost untouchable as they represented some of the NBA’s top players at the time.

They had one small issue with this however, much like a lot of current brands in today’s market with keystone influencers and the marketing budget allocated to human endorsement; They couldn’t turn a profit on this area.

And so they shut down the division, enabling Nike & Adidas to take over and storm the market, whereby you’ll still find around 75% of NBA players wearing Nike shoes when they enter court.

More importantly, as NBA increased in popularity, Nike’s brand thrived financially as they ride the wave of basketball popularity and fan-demonium.

Nike US Revenue

  • 1990: $2B
  • 2000: $5B
  • 2010: $8B
  • 2019: $16B

Here’s a key take away from this that you may not have known: The basketball shoe business isn’t a lucrative one when it comes to profits. The typical profit margin within this sector all things accounted for is just a 5% profit margin. This proves that for the power players who have been around for generations, it’s all about the cultural influence (which is leverage and huge brand equity in consumers minds), rather than making quick returns on the short term.

With revenue dropping sharply by 10% from 2012-2014, Puma knew changes were needed, and fast to remain competitive.

Who did Puma seek out first to join them on this climb?

None other than Rihanna herself.

Rihanna was named creative director of Puma Women. With women’s sales ramping up a heavy 92%, Puma saw immediate results from the introduction of RiRi, to no surprise. Of course, the brand leverage from this was also something to be accounted for. 

Did they stop there?

No, Puma had their sights on taking things back to where they wanted to be within the basketball arena. To do this, they looked to someone of equal measure when it comes to influence, a true G.O.A.T by the name of Jay Z.

Given his cultural appeal and connection to sports biggest stars through Roc Nation, it was a no-brainer for the brand to bring in such a mogul.

Thereafter, Jay Z became the new Creative Director of Puma Basketball. Upon this announcement, one of his conditions was that he wanted a Puma Jet.

No biggie.

Jay felt that creating a fully Puma branded private jet would set the brand apart, and of course it did just that.

The brand wasn’t playing around, fully investing into every facet possible to ramp up brand image, set itself apart from the competition, and launch an attack on the markets it wanted to be a big player within.

They even personalized the tail number for Jay Z:

  1. N: Country code
  2. 444: Jay-Z’s album title
  3. SC: Shawn Carter

It’s not just a gimmick either, players routinely mentioned their ability to use the “Puma Jet” as an advantage.

Word was getting around, and Puma were becoming a heavy hitter once again, and no longer in the shadows of Nike and Adidas.

Where they could have easily backed down or tried to get on a level with competition, Puma always went one step further, attempting to break the market and leapfrog competition to be the best they possibly can be, crafting their own image, on their own terms for domination of their sector.

Outside of basketball, Puma has routinely continued to delve into celebrity image. Recent brand partnerships from celebs range from The Weeknd, right through to Victorias Secret model Adriana Lima.

From Victorias Secret they then go to other sports, notably F1 and Football with Lewis Hamilton and Neymar Jr.

This for us, proves the point that standing alone, doing different and thinking different, leads to different results. Brands can learn a whole lot from Puma’s approach when it comes to endorsement and driving up company profits and value. The message is clear; think outside of your current thought sphere, and delve into new spaces.

Still in doubt? 

Here’s the figures..

After seeing their annual revenue decline for two consecutive years, Puma’s all out celebrity strategy has skyrocketed their growth to phenomenal levels.

Revenue 2012-2014: $3.8B to $3.5 (decline)

Revenue 2014-2019: $3.5B to $6.5

Oh and also, their stock has gone from $22 to $99, and rising.

Today, with the focus on cultural influence embodying the brand, Puma is now more relevant than ever before, proving that when a brand can pivot and reach out to new areas, it can often pay off if the execution is strong.

This shift for Puma changed the direction for their entire brand, and for the better as they are poised to remain a heavy hitter in multiple industries for many more decades.

 

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.

Categories
Brand Long Read SMM

In Musk We Trust: What Your Brand Can Learn From Tesla

Tesla. We all know the name, and will have our own opinions of a company which is consistently seeking innovation and has carved it’s way as the pioneer of electric vehicle ownership. However, how can your brand see Tesla in such a way that would be of benefit?

With Tesla, something is very different, and it all stems for the C word.

1. Customer Centricity

Everything at Tesla embodies an experience which is customer centric. From the website user design, right through to the ownership after care everything is built around the customer in such a way that majorly disrupts the car industry.

It’s such an integral part of Tesla, and this is why Tesla owners genuinely want Tesla to be successful on every level. Tesla owners want to be a part of the Tesla journey, the Tesla ethos, and see the company be a major success. They are raving fans, rooting for the company to dominate. An extremely high 80% of customers buy or rent another Tesla for their next car after buying their first, and it’s no surprise.

What can you learn from this? Create an experience that is adored, fine tuned to focus on creating loyalty and you will have something truly special; an experience that sticks in the mind of your customer. With this you will have them for life, time and time again.

2. A website that oozes class, and makes the buying process a breeze

Go on the Tesla website and you will see a user experience that is far beyond any capability of it’s competitors. Car sites are traditionally sticky, bulky and difficult to navigate. Check out BMW and you will see how their site homepage is busier than the sale rales at TK Maxx, cluttered with corporate jargon and taking the customer away from what they want to see, and straight into what the company feels is important.

Tesla on the other hand, much like their vehicles is sleek, smooth and crisp. It’s so clean we would eat our breakfast off it.

It creates an experience that mirrors the Tesla ownership experience. Experience here is the important word when thinking of your brand like Tesla; you want to create a feeling of ownership of your product, even before it has been ordered.

The call to action on each slide is an enticing button which is seamless with the web design, taking you on a customer journey which focusses on you beginning your Tesla ownership ride.

Within just TWO clicks from the homepage, you are given the ‘Buy a Tesla’ option.

Now, we don’t know what your product is, however if it is anything smaller or less pricey than an $80,000 electronic vehicle and your customer cannot buy it within just two clicks…

…What are you doing?!

From here, picking out your vehicle and having all of the key questions answered without needing a “questions” section shows just how advanced they are on the market.

Tesla Custom Build

Car information, price, savings you’ll be getting, a bar to change your payment method, delivery date, and a customer journey bar at the top to show you that you are only 3 steps away from having your Tesla fully spec’d out, it’s all so clean and is exactly what the customer wants to see.

Tesla have gone for minimal styling here, keeping things light and simple for the customer for something that historically has been such a complex purchase for many.

If Tesla can do this on one of the biggest purchases an individual can make, why isn’t your site following suit?

3. A Digital Only Strategy

In 2020, customers will more often than not, be starting their purchase online. That means that digital provides customers their first impressions of the brand. Tesla stands out right away with a strong digital presence, in a way that is mission focussed and depicts the why behind the brand in such a way it creates legions of fans even from those who have never even sat inside a Tesla cockpit. Instead of being pushed into a sale by a well oiled car salesman wearing a Datejust, they are given information to make their own choices through the omni channel experience online. Such things have been taken to the extreme by Tesla too, in 2019 they shut down all of their physical Tesla showrooms and stores. They are the only car manufacturer to have an online only presence which was a major shift for the market, and one which is radically innovating, going against the grain of the supposed ‘need’ for physical locations for car companies.

When you focus on where the customer is, how they want to shop and why they shop for what they do, you’ll find that the online experience is paramount.

4. A Mission Beyond The Product

Tesla is hugely mission focussed beyond all else. Excusing the pun, the cars themselves are just a vehicle for change. In Tesla’s words their purpose in the world is to “accelerate the world’s transition to sustainable energy.”

Existing for more than profits, making money and selling their new cars and getting them out onto the roads, Tesla has built an identity for carving a strong mission that everyone buys into. It makes their employees more engaged and dedicated to the ultimate cause, which encourages them to deliver a better customer experience because there is a paramount ‘why’ behind everything Tesla stand for.

On the other end of this, Tesla owners are a part of something. A movement for change, for the better.

If your product or brand doesn’t have a central purpose aside from selling, you may be at the mercy of brands that can have people buy into a ‘why’.

In Musk We Trust,

The Normal Company