Influence perception through pricing: How Skims cemented their reputation as a luxury shapewear brand

Skims is a popular American shapewear and clothing brand co-founded by Kim Kardashian, Emma Grede and Jens Grede in 2019. With a focus on body positivity and inclusivity across the brand, Skims has rapidly become popular due to its diverse range of nude tones and sizes, as well as its innovative designs that cater to various body types.

Changing fashion perceptions through the Kardashian brand

Skims is not only popular but also influential in the fashion industry. Its emphasis on inclusivity with how their range of products cater to a variety of body types and skin tones has garnered it a lot of praise and attention. Furthermore, it has been at the forefront of the shapewear revolution in terms of shifting the paradigm towards comfortable and functional shapewear for everyday use, providing a diverse array of designs and stretchy fabrics. And, especially during and after the COVID-19 pandemic, Skims has offered popular loungewear products for people who spend more and more time at home to enjoy. 

 

 

The shapewear and loungewear market in general has seen significant growth in recent years due to various fashion trends, an increasing focus on body positivity, and a growing demandfor functional and stylish clothing. This has made the industry highly competitive with the competition between both established and emerging brands. For Skims specifically, its main competitors are Spanx, Commando, Yummie, Honeylove, and Savage x Fenty, who all either offer similar product offerings and/or incorporate similar messaging and branding.

 

The Pricing Strategy: Inclusive Luxury Positioning in a Highly Competitive Market

Target Consumer Audience:

Due to the nature of their products, Skims has a generally broad consumer audience but primarily focuses on women seeking comfortable and inclusive shapewear, loungewear, and undergarments. Their emphasis on inclusivity means that their products aim to cater to women of all shapes, sizes, and skin tones. And, with Kim Kardashian as the figurehead of the company, much of its marketing often features many other celebrities and influencers.

 

Current Pricing Plan:

Across its wide variety of products, Skims’ pricing is considered mid-range to premium, reflecting its focus on quality materials and innovative designs. 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 some lower-priced brands. So, Skims emphasizes the quality and value of their products so that customers can instead perceive Skims’ products as worth the investment.

 

How Pricing Has Evolved

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 consistency 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 may have different pricing structures. Thus, this has pushed the image of the brand being one that is both premium yet accessible. 

Also, compared to other brands, Skims offers very limited discounting in terms of frequency. They have also done discounting in various ways, such as distributing promo codes through email newsletters, social media, or partnerships with influencers or media outlets. They have also offered discounted prices for members as membership benefits as well as occasionally holding short sales periods for select products as advertised on their website and social channels.

Deeper into Skims: Key Takeaways from their Pricing Strategy

Why is their 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 its 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? Maximize branding and marketing assets

1. Create and support assessable premium pricing: Good brand positioning helps them focus on being a premium brand with high quality 
2. Influence, influence, influence: Founder Kim Kardashian and other celebrities helped to create buzz and reinforce their premium image
3. Create FOMO: Limited Edition drops help create buzz and excitement by being different from regular offerings which creates a sense of exclusivity
4. Leverage social selling: Savvy social media marketing helps them focus on their messaging around value and inclusivity 

 

Watch Out! If you use this pricing strategy playbook… 

1. Understand your target customer segmentation and their willingness to pay because this is crucial to figuring out your eventual pricing strategy.
2. Skims is a premium brand, so it is important to remember that the quality of your product justifies your pricing. 
3. Value perception is key as it affects the way customers view your pricing and determine whether your product is truly worth the investment.
4. 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. 
5. A compelling brand image can essentially support higher pricing, so take time to work on it and make it consistent with your product offerings. 

Did you know? 

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