By Anna Watson Poet and Quant
Sometime before or after contributing to a Harvard Business School lecture, Kim Kardashian snaps a photo while on campus. She later posts it on Twitter and other social media channels, captioned with a thank you to the B-school and professor for hosting a class about her shapewear line SKIMS, reportedly valued at over $3.2 billion.
Harvard Professor Leonard Schlesinger: “Two things we were focusing on being hot was, ‘Is TikTok the new Google,’ and moving from influencers to celebrities as a strategy for lowering the cost of customer acquisition”
This year’s DTC program was all about moving away from influencers and toward celebrities to try to acquire a larger customer base at a lower cost, hence appearances from two highly regarded female celebrities.
Johansson’s visit largely went unnoticed by the internet, while Kardashian’s attracted a deluge of media coverage. One Twitter user speculated that HBS was “desperate” for speakers. Another responded to Kardashian’s tweet referencing Legally Blonde character Elle Woods — a reference in which Kim later reposted a meme about.
Schlesinger argues that Kardashian and her ability to reach over 350 million followers represent a channel for marketing that is quite unprecedented. So what can a Harvard cohort learn from an unrelatable 350 million?
“A number of our students are going to want to be investors in this space,” he says. “If (students) meet a celebrity, how do you understand what the two of you need to do to make something happen?”
Schlesinger says both Johansson and Kardashian as celebrities offer different perspectives on product portfolios in that they approach social media and what they do publicly differently.
“It is really important for our students to be able to see the juxtaposition between those two businesses and business strategies as they think about how it actually fits for them,” he says.
Johansson’s company emphasizes a simple skincare regimen offering just a few products while staying conscious about ingredients, vying for someone who aims to have quality products with enough ease but without harmful additives.
Kardashian’s SKIMS collection was described by the Financial Times as “Spanx for Gen Z.” The brand sells shapewear, loungewear and underwear, catering to a diverse range of sizes and shapes and known for collaborating with brands such as Fendi or promoting through other celebrities, such as a nostalgic crew of former Victoria Secret Angels.
Schlesinger says celebrity has very little advantage in the market without a good product. He wants students to understand how difficult the DTC space can be for lowering consumer acquisition costs and for other various emerging barriers. One being that someone like Kardashian does hold an audience of 350 million.
“I mean she’s got 350 million followers, so the issue becomes, that’s a natural asset that every other traditional DTC is chasing,” he says.
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