Business Wars: Spanx vs. Skims | Not Your Grandmother’s Girdle | Episode 1

Host: David Brown
Release Date: March 19, 2025
Network: Wondery

Introduction

In the inaugural episode of Business Wars, Wondery delves into the fierce competition between Spanx, founded by Sarah Blakely, and Skims, established by Kim Kardashian. Hosted by David Brown, the episode chronicles the entrepreneurial journey, strategic battles, and market dynamics that shape these two titans in the shapewear industry.

Sarah Blakely’s Inspiration and Early Struggles

Setting the Scene: The story begins in Atlanta, Georgia, 1998, where a young Sarah Blakely faces frustration with traditional shapewear. In a department store fitting room, Blakely struggles with uncomfortable compression tights that fail to provide the desired smooth silhouette.

• Quote [00:14:09]:
  Sarah Blakely: “If only somebody made control top pantyhose without the feet that didn't roll up, they'd have a hit business on their hands.”

The Aha Moment: Determined to find a solution, Blakely modifies pantyhose by cutting off the feet, discovering a temporary fix that inspires her to create a better product.

• Quote [00:22:03]:
  Blakely: “These are the same white pants that I was trying to find the right undergarment for two summers ago. Now I want you to look at my butt.”

Entrepreneurial Spark: With $5,000 in savings, Blakely embarks on an entrepreneurial journey to revolutionize the shapewear market, unaware of the challenges ahead.

Developing the Prototype

Research and Development: Blakely dedicates a year to developing her prototype, self-educating on patents and tirelessly experimenting with materials to perfect her control top footless pantyhose.

• Quote [00:28:47]:
  Narrator: “Blakely learns that most American hosiery manufacturers are based in North Carolina, so she puts together a list and writes a letter to the manager of each one, pitching her idea.”

Rejection and Resilience: Facing numerous rejections from manufacturers, Blakely's perseverance eventually pays off when a manager, influenced by his daughters, agrees to help create the prototype.

Pitching to Neiman Marcus

First Major Pitch: In Dallas, Texas, summer 2000, Blakely secures a meeting with the head hosiery buyer at Neiman Marcus. Her initial pitch falters when she awkwardly invites the buyer to the bathroom to demonstrate Spanx.

• Quote [00:21:29]:
  Blakely: “This is what I look like with no Spanx. See the panty lines, the cellulite?”

Turning Point: Realizing her mistake, Blakely improvises in the restroom, successfully showcasing the transformative effect of Spanx. Impressed, the buyer places an initial order of 5,000 units across seven stores.

• Quote [00:23:04]:
  Buyer: “That’s brilliant. We’ll do a test order, let’s say 5,000 units in seven stores. If it sells well, we’ll order more.”

Oprah’s Endorsement and Explosive Growth

The Oprah Breakthrough: Facing logistical challenges and overwhelmed by orders, Blakely receives a life-changing call from Oprah Winfrey’s production company, Harpo Studios, inviting Spanx to be featured in Oprah’s annual Favorite Things episode.

• Quote [00:29:08]:
  Narrator: “The episode airs now. Right away, orders come pouring in through the website.”

Immediate Impact: The feature propels Spanx into national prominence, with sales skyrocketing to $400,000 by year-end and positioning Blakely as a pioneer in organic marketing driven by genuine consumer interest.

Operational Challenges and Scaling Up

Managing Rapid Growth: As Spanx's popularity surges, Blakely grapples with scaling operations. Initially handling everything herself, she hires her first employees and secures a fulfillment center to manage direct orders.

• Quote [00:40:11]:
  Blakely: “We need systems in place to ensure that stores have a steady supply.”

Strategic Hiring: Realizing her strengths lie in marketing and product development, Blakely hires Lorianne Goldman, a seasoned executive, to oversee operational logistics. Goldman’s expertise helps streamline Spanx’s supply chain and expand the product line.

• Quote [00:40:48]:
  Goldman: “Spanx needs to adjust itself to new market realities...”

Growth and Diversification

Product Expansion: Under Goldman’s leadership, Spanx introduces over 40 new garments, including fishnet stockings, bras, and maternity wear, solidifying its market position.

QVC Pivot: In a strategic move, Spanx begins selling on QVC, bridging the gap between high-end department stores and mass-market accessibility. This approach results in impressive sales, further boosting revenue to an estimated $4 million by early 2001.

• Quote [00:30:37]:
  Blakely: “Absolutely. We’ll be ready.”

Shift in Market Trends and Leadership Changes

Market Evolution: By 2011, Spanx faces stagnating sales attributed to the Great Recession and shifting consumer preferences towards comfort and body positivity. The brand’s traditional shapewear approach begins to appear outdated.

Leadership Transition: With revenue plateauing and the need for fresh strategic direction, Spanx brings in Jan Singer from Nike to interview for the CEO position. Singer critiques Spanx’s stagnant image and advocates for adapting to contemporary trends.

• Quote [00:38:34]:
  Singer: “Spanx is starting to look dated. Body positivity is on the rise, and some of Spanx’s packaging and marketing can come across as fat-shaming.”

Strategic Realignment: Singer emphasizes the importance of evolving with market trends, warning that without adaptation, Spanx risks being overshadowed by emerging competitors like Skims.

Conclusion

The episode concludes with Spanx at a critical juncture, facing the imperative to innovate and reposition itself in a dynamic market landscape dominated by competitors like Skims. Blakely’s journey underscores the importance of resilience, strategic pivots, and leadership in navigating business wars.

Key Takeaways

• Entrepreneurial Drive: Sarah Blakely’s determination to solve a personal discomfort paved the way for Spanx’s creation.
• Resilience in Adversity: Overcoming repeated rejections and operational hurdles was crucial to Spanx’s early success.
• Strategic Endorsements: Oprah Winfrey’s endorsement served as a pivotal catalyst for Spanx’s explosive growth.
• Adaptation and Innovation: The need to evolve with market trends and consumer preferences remains vital for sustained success.

Notable Quotes

• Sarah Blakely [00:22:03]: “These are the same white pants that I was trying to find the right undergarment for two summers ago. Now I want you to look at my butt.”
• Buyer [00:23:04]: “That’s brilliant. We’ll do a test order, let’s say 5,000 units in seven stores. If it sells well, we’ll order more.”
• Jan Singer [00:40:48]: “Spanx needs to adjust itself to new market realities...”

This detailed summary encapsulates the entrepreneurial saga of Spanx, highlighting the strategic maneuvers and market challenges that define the business wars between Spanx and Skims.