How Skims built a luxury shapewear brand through premium pricing

 

Meet Skims, a Kim Kardashian brand

Skims has become an influential force in the fashion industry by emphasizing shapewear inclusivity, designing comfortable and functional garments, and leveraging Kim Kardashian’s celebrity presence. These strategies placed Skims at the forefront of the shapewear revolution (which boomed during and after the COVID-19 pandemic) where shapewear for everyday use became a top fashion trend. By providing a diverse range of designs and stretchy fabrics for customers with different body types and skin tones, the brand also earned high praise and attention.

 

 

Who are Skims’s competitors? 

The shapewear and loungewear market in general has seen significant growth recently due to multiple fashion trends: an increasing focus on body positivity and a growing demand for functional and stylish clothing. This makes for a saturated and highly competitive market. 

 

Skims’s competitors consist of established brand names including Spanx, Commando, Yummie, Honeylove, and Savage x Fenty–just to name a few. 

 

But what makes differentiation particularly difficult in this market is the high similarity across product offerings and messaging from all brands that occupy the space. So, brands need to take extra steps to stand out, whether that’s through their pricing, positioning, or other strategical means. Take a look at our comparison graphic for more details on prominent players in the shapewear market.

 

Why are Skims expensive?

While Skims aren’t the most expensive shapewear brand on the market as seen in our comparison graphic (in fact, several brands price their products significantly higher than Skims!), they aren’t the least expensive option either. Let’s take a look at how Skims’s pricing strategy fits in with their brand image and justifies their luxury positioning in a highly competitive market.

 

Focus on a Target Consumer Audience:

Due to the nature of shapewear products, Skims has a generally broad consumer pool but narrows down their target audience to women seeking comfortable and inclusive shapewear, loungewear, and undergarments. This means that their consumers are typically looking for products that cater to women of all body types, sizes, and skin tones. 

 

Furthermore, with Kim Kardashian as the face of the brand, much of Skims’s marketing often features many other celebrities and influencers that tap into their following, consisting primarily of women interested in beauty, fitness, and trending lifestyle content.

 

Skims Pricing Reflects Value:

Skims’ pricing is considered mid-range to premium, reflecting their focus on quality materials and innovative designs across their wide variety of products. For example, a basic shapewear piece might range from $30 to $80, while more elaborate or specialized items could cost $100 or more. As a result, Skims’ pricing is generally in line with other premium shapewear and loungewear brands such as Spanx and Yummie. But, it is also slightly more expensive than other lower-priced competitors. So, Skims emphasizes the quality and value of their products so that customers can perceive Skims’ products as worth the investment.

 

How Skims Pricing Has Changed

Since its launch, Skims’ pricing strategy has remained relatively consistent, focusing on this mid-range to premium pricing for its shapewear, loungewear, and undergarments. In fact, such stability in pricing is a part of their branding in general, as they maintain a consistent pricing approach across all of its size and shade offerings to deliberately avoid price discrimination based on size or color. However, the brand has occasionally introduced limited-edition or special collaboration collections that have different pricing structures. Leveraging both a consistent pricing strategy and making room for additional pricing promotions has supported Skims’s image of a brand that is both premium yet accessible. 

 

When Skims offers discounts they do so through multiple channels, such as distributing promo codes through email newsletters, social media, or partnerships with influencers or media outlets. They have also offered discounted prices to incentivize becoming a Skims’s member, and occasionally hold short sales periods for select products which are advertised on their website and social channels. However, compared to their competitors, Skims offers very limited discounting in terms of frequency which has upheld their luxury brand image. 

Key Takeaways from Skims’s Pricing Strategy

Why is Skims’s pricing strategy effective? 

1. Focus on the brand and brand ambassadors: Premium yet accessible branding helps differentiate Skims from lower-priced competitors through its emphasis on high quality.
2. Broaden the brand’s value drivers: Skims’ commitment to inclusivity starts with its founders down to the product–same pricing across all sizes and nude shades helps reinforce this aspect of their brand image.
3. Establish pricing expectations: Their consistent pricing since their launch has helped build trust and loyalty among its customer base.
4. Establish value expectations: Limited discounting helps Skims maintain the perceived value of its products and encourages customers to make purchases at full price instead of waiting for sales, leading to higher profit margins for the brand.

 

How did they do it?

1. Influence, influence, influence: Founder Kim Kardashian and collaborations with other celebrities create buzz around products and reinforce attributes of their brand, including their premium image.
2. Create FOMO: Limited edition drops generate excitement and a feeling of exclusivity, encouraging consumers to buy. 
3. Leverage social selling: Savvy social media marketing helps increase their brand visibility, connect with their target audience, and provides a platform to promote Skims’s brand messaging.

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Things you need to know if you use this pricing strategy playbook…

1. Build an understanding of your target customer segmentation and their willingness to pay–this is crucial to figuring out your pricing strategy.
2. Skims is a premium brand that leverages value perception, so it is important to remember that the quality of your product justifies your pricing, and it influences how customers view your pricing and decide whether your product is truly worth the investment.
3. Utilize promotions and discounts in a reasonable manner with a focus on customer behavior. Don’t break the bank and use the element of surprise so that your customers aren’t just “waiting it out” until the next promotional period. 
4. A compelling brand image can essentially support higher pricing, so take time to work on it and make it consistent with your product offerings.