First Doesn't Mean Forever
Winston Peters
Business & Brand Strategist @ MyUberLife Consulting - Program Director at Entrepreneurs@MC / Adjunct Professor at Manhattan College
In the fast-paced realm of business, being the pioneer often garners significant acclaim. Yet, the narratives of Spanx and SKIMS in the shape-wear sector illustrate a crucial truth: innovation is a continuous journey rather than a singular milestone. The recent unveiling of SKIMS' flagship store on New York's? Fifth Avenue—alongside a vibrant advertising campaign featuring the iconic Nia Long—highlights this reality with striking clarity.
You might ask "Why is Winston writing about shape-wear?" It's more about what these two brands represent as it relates to business innovation & brand positioning.
The Numbers Tell a Story
Spanx, founded in 2000, revolutionized the shape-wear market and is currently valued at $1.2B with $149M in annual revenue. In contrast, SKIMS, launched nearly two decades later in 2019, has achieved a remarkable $4B valuation with $750M in revenue for 2023. This stark difference raises intriguing questions about the true value of being first.
The First-Mover Advantage: A Double-Edged Sword
First-mover advantage enables a company to establish strong brand recognition, customer loyalty, and early resource acquisition. Spanx initially benefited from these advantages, becoming synonymous with shape-wear and enjoying a loyal customer base.
However, first-mover disadvantages are equally real. High-risk moves often translate to high failure rates, and being a technology pioneer can be extremely challenging. Spanx's focus on utility and problem-solving, while revolutionary at first, eventually left room for innovation.
From Utility to Fashion Statement: The SKIMS Revolution
SKIMS disrupted the market by transforming shape-wear from a hidden necessity to a fashion statement. They embraced inclusivity, offering a wide range of skin tones and sizes, and positioned their products as lifestyle choices rather than just functional items.
This shift in approach demonstrates that markets evolve, and consumer preferences change. First movers must be willing to reassess and adapt their positioning continuously to maintain their lead.
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Lessons for All Industries
The Spanx vs. SKIMS narrative offers crucial lessons applicable across sectors:
1. Continuous Innovation is Key: Being first to market is an advantage, but it's not a guarantee of long-term success.
2. Adapt or Fade: Markets evolve, and so must your brand and products.
3. Create Emotional Connections: Transform your product from a mere utility into a coveted lifestyle item.
4. Embrace Inclusivity: Diversity in product offerings can significantly expand market reach and brand appeal.
Looking Forward: Staying Ahead in a Competitive Landscape
As we move forward, successful brands will need to:
The shape-wear industry's evolution reminds us that in business, standing still is moving backward. Whether you're a first mover or a late entrant, the key to longevity is to keep innovating, listening to your customers, and evolving your brand.
What are your thoughts on the importance of continuous innovation versus being first to market? Have you observed similar trends in other industries? Let's discuss in the comments below!