SKIMS: How Kim Kardashian Turned Hype Into a $4 Billion Business

When Kim Kardashian announced she was launching a shapewear brand called Skims back in 2019, most people rolled their eyes.

“Another celebrity brand?”

It felt like a short-term side hustle, the kind of project that sells fast, fades fast, and ends up on clearance within a year.

Six years later, Skims is worth over $4 billion. It outsells some long-established fashion houses, has partnerships with Nike, NBA stars, and major pop icons, and recently launched a menswear line that crashed its website within minutes.

So how did a brand selling shapewear become one of the biggest names in modern fashion? The answer lies in smart marketing, a direct-to-consumer business model, and a masterclass in creating hype.

Image credit: Skims.com (2025)

The Drop Effect: Making Ordinary Feel Exclusive

Skims doesn’t quietly release products. Each new colour, style, or limited-edition range is teased across Instagram and TikTok weeks in advance. Influencers begin posting “unboxing” videos, fashion editors speculate about upcoming designs, and millions of fans set reminders for the launch.

Then, within hours of release, everything is gone. Sold out. Again.

This is what marketers call a scarcity strategy, keeping supply slightly below demand to create FOMO — the fear of missing out. By limiting availability, Skims makes everyday items like underwear feel rare and desirable.

People love the chase. Owning a pair of Skims isn’t just about comfort; it’s proof that you were quick enough, stylish enough, or connected enough to get them before they disappeared.

Every “sold out” moment becomes free advertising. TikTok fills with disappointed customers saying “I missed the drop!”, which only fuels excitement for the next release.

Direct to Consumer: Cutting Out the Middleman

One of the smartest business moves Skims made was skipping the high street entirely.

Instead of relying on department stores, the brand sells almost exclusively through its own website. This is known as the direct-to-consumer (DTC) model, and it is a huge part of why Skims has been so profitable.

This model matters because it allows Skims to keep full control over pricing, branding, and customer data. There is no retailer taking a share of the revenue, which means profit margins are much higher. It also gives the company complete control over its stock levels, perfectly aligning with those limited-edition drops that generate so much buzz.

The DTC approach also ensures that the customer experience is consistent from start to finish. From the sleek website design to influencer-led marketing, every step of the journey feels like it comes directly from the brand rather than a store shelf.

Other modern brands such as Gymshark and Glossier used this strategy to build loyal online communities before opening physical stores. Skims is now doing the same, launching flagship stores in Los Angeles, New York, and London while maintaining its online dominance.

How Social Media Turned Skims Into a Lifestyle

Scroll through Instagram and you won’t just see adverts for Skims, you’ll see people living in Skims.

Models, influencers, celebrities, and athletes share photos in minimalist beige sets or post try-on hauls on TikTok.

Image credit: GQ (2023)

Kim Kardashian’s own platform of more than 360 million followers gives Skims instant global reach, but it’s the community effect that drives long-term success. Each repost, mention, and hashtag builds the sense that Skims is everywhere.

The brand doesn’t rely on glossy billboard campaigns. Instead, it relies on conversation. The posts look spontaneous, but behind the scenes Skims operates one of the most strategic influencer networks in fashion.

Major names like Hailey Bieber, Rihanna, and Neymar Jr appear in campaigns, alongside hundreds of smaller influencers who make the brand feel relatable and authentic.

This mix of celebrity glamour and real-world relatability helps Skims reach every corner of social media, from luxury fashion pages to TikTok’s “get ready with me” creators.

Turning Influence Into Income

Skims might look like a social-media phenomenon, but it is also a serious financial powerhouse.

In 2023, annual revenue exceeded $750 million, and the company’s valuation climbed to $4 billion after a major investment round. Kim Kardashian owns around 35 percent of the business, meaning her personal stake is worth well over a billion dollars.

That level of success has been built on the DTC model, tight brand control, and investment from major venture capital firms such as Thrive Capital.

Unlike traditional fashion brands, Skims doesn’t spend vast amounts on magazine adverts or billboards. The hype is the marketing. Every influencer post, every limited drop, and every viral TikTok forms part of a self-sustaining advertising cycle.

It might look effortless, but it’s a masterclass in modern brand engineering.

When Hype Becomes Heritage

The real challenge for Skims is maintaining its relevance now that it has achieved mainstream success.

So far, the company has handled this through careful expansion, moving beyond shapewear into loungewear, menswear, and beauty. Its partnership with Nike will push the brand deeper into activewear, while the recent acquisition of SKKN by Kim shows clear intent to dominate the beauty market too.

Yet staying “cool” is harder than becoming famous. Scarcity and celebrity can launch a brand, but to stay on top a business must continue evolving.

Skims seems prepared for that. Its new physical stores focus on customer experience, with minimalist interiors, interactive displays, and exclusive in-store product drops. The company is no longer just selling clothes; it’s selling an identity, a sense of belonging, and a lifestyle that millions of customers want to be part of.

That’s the real genius of Skims. It’s not just a fashion label; it’s a brand that turned hype into heritage.

Questions for Business Students:

1. How does the deliberate use of scarcity influence consumer behaviour, and to what extent can this strategy create long-term brand value rather than just short-term hype?

   
   

2. In what ways does the direct-to-consumer model give brands like Skims a competitive advantage, and what potential risks might arise as the business scales globally?

   
   

3. To what extent is Skims’ success dependent on Kim Kardashian’s personal brand, and could the company sustain its growth if it became less associated with her celebrity status?