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.
