Spanx vs Skims | Not Your Grandmother’s Girdle | 1

0:07It's May 2016 in Cannes France. Kim Kardashian scowls at her reflection in the mirror. She's dressed in a floor-length sparkling silver dress with a long train that seems custom-made for her. The dress is gorgeous, but Kardashian hates the way it looks. In just a few hours, Kardashian's set to make her red carpet debut at the prestigious Cannes Film Festival, and she needs to look perfect. She's known for accentuating her hourglass figure. It's helped her build a business empire and a net worth of over$50 million. Every outfit has to be a hit, and this doesn't look like a hit. Kardashian's team gathers around her.

0:49They agree something's off. Her stylist has Kardashian do a 360. The stylist gestures at the skin-tight slip that's visible through the dress's side slits. It's too pale. Kardashian nods. He's right. The contrast between her skin color and the slip makes it look like underwear. It needs to be darker, closer to her own skin tone. Her stylist says they can dye it. Kardashian's not convinced. They don't have any dye and there's not enough time. They need to leave for the red carpet in less than 90 minutes. The stylist thinks for a minute, then snaps his fingers. They can use tea bags. They only need the slip to be a smidge darker.

1:29They can do this. Kardashian agrees and the team springs into action. Her assistant fills the bathtub. The stylist grabs a box of tea bags from the kitchen. The Kardashian strips and throws on a bathrobe. They dump the entire box of tea into the tub. When the water's a deep brown, they submerge the slip. They leave it as long as they can. When they hold it up, it's definitely darker. But now they need it to dry and fast. They all take out hair dryers and blow hot air on the slip. But pretty soon they're out of time. The slip isn't completely dry, but it's dry enough. Kardashian shimmies back into it.

2:09The damp material feels clammy on her skin. She's willing to endure a lot of discomfort and pain for fashion, but a wet garment may be a bridge too far. And it's not the first time Kardashian and her team have had to DIY her shapewear. She frequently has to cut off the legs of compression tights to accommodate the high-slit dresses she loves. Her team has Frankensteined other pieces before, sewing various compression garments together to make them work for her outfits. It shouldn't be this hard, she thinks. These undergarments should come in more shapes, more shades. Kardashian eases into the heavy bejeweled dress.

2:46Her stylist helps her clasp it, and when she looks in the mirror, she likes what she sees. The moist slip may feel uncomfortable, but it looks pretty good. And as Kardashian does one final spin in the mirror looking at herself from all angles, an idea hits her. If no one's making the garments she wants, she should make them herself. By the time she's in her car, Kim Kardashian has made a decision. She's going to remake the shapewear market and become its new queen bee.

3:23So, you just realized your business needed to hire someone yesterday. How can you find amazing candidates fast? Easy. Just use Indeed. See, when it comes to hiring, Indeed is all you need. Stop struggling to get your job posts seen on other job sites. Indeed's Sponsored Jobs help you stand out and hire fast. With Sponsored Jobs, your post jumps to the top of the page for your relevant candidates so you can reach the people you want faster. And that makes a huge difference. According to Indeed data, Sponsored Jobs posted directly on Indeed have 45 % more applications than non-sponsored jobs. Plus, with Indeed Sponsored Jobs, there aren't any monthly subscriptions, no long-term contracts.

4:12You only pay for results. How fast is Indeed? Well, in the minute I've been talking with you, 23 hires were made on Indeed, according to Indeed data worldwide. Look, there's no need to wait any longer. You can speed up your hiring right now with Indeed. And listeners of Business Wars will get a$75 sponsored job credit to get your jobs more visibility. That's at Indeed.com slash BW. Just go to Indeed.com slash BW right now and support our show by saying you heard about Indeed right here on Business Wars. That's Indeed.com slash BW. Terms and conditions apply. Hiring? Indeed is all you need. This message is brought to you by Apple Card.

5:00So you left your wallet in the car. Or was it at home? No need to panic. With your iPhone, you can tap to pay using Apple Card with Apple Pay and earn unlimited daily cash back when you do. Apple Card is ready when you need it. Subject to credit approval, Apple Card issued by Goldman Sachs Bank USA, Salt Lake City Branch. Terms and more at AppleCard.com.

5:28From Wondery, I'm David Brown, and this is Business Wars.

5:58When Kim Kardashian had her lightbulb moment in southern France, the shapewear industry was bringing in about$700 million in annual revenue in the United States. There was one brand that towered above them all. You may have heard of it, Spanx. That company was synonymous with the whole category, the way Kleenex has come to mean facial tissue. About 15 years earlier in the year 2000, Spanx was credited with reinventing shapewear for the modern era. And while it may have seemed old hat by the time Kardashian was dying her slip with teabags, Spanx used to be viewed as highly innovative. Its founder, Sarah Blakely, created an entirely new clothing category.

6:40Kardashian may have had fame and fortune on her side, but her entrance into the shapewear business going up against an established titan-like Spanx, that was no safe bet. This is a story about what it takes to launch a product, to convince everyone from prototype manufacturers to buyers to investors to take a chance on something that's untested in the marketplace. It's also a story about how far celebrity backing can take a brand. Is the endorsement of a big name enough to upend the status quo? And how long before the sizzle of that newcomer wears off? Beyond just a battle for dollars, Spanx and Kardashian's skims have to contend with a shifting retail landscape, one that's been affected by the body positivity movement.

7:27They're wrestling over what the ideal women's body looks like and how much discomfort women should endure to achieve it. Global forces are at play too, of course. Is the pandemic-era athleisure trend here to stay? Is it smart to make a full pivot to sweats and yoga pants? Or will the pendulum suddenly swing back? In order to survive, both companies are going to need to adapt. But first, I told you this was a story about entrepreneurship, about faking it until you make it. And by making it, I'm talking about Spanx founder Sarah Blakely becoming a billionaire. But once upon a time, Blakely was just a woman who hated the way she looked in white pants and was determined to change that.

8:09This is Episode 1, Not Your Grandmother's Girdle.

8:20It's summer, 1998, in Atlanta, Georgia, a department store fitting room. 27-year-old Sarah Blakely can feel beads of sweat forming on her forehead as she yanks another pair of compression bike shorts up her thighs. It's her third pair, and she's ready to give up. The shorts are thick and uncomfortable, and somehow they make her look even more lumpy. Her stomach bulges over the waistband where the shorts squeeze, and the seams around the hips and thighs are visible right through the pants. She looks worse than she did wearing regular underwear. There's no way she's wearing any of these awful garments to a swanky cocktail party.

8:58Blakely came to this department store on a quest to find underwear that would help her feel better about how she looks in a pair of white pants. Pants that have hung unworn in her closet for eight months now. She splurged on them after getting a promotion in her sales job. But every time she tried the pants on, she ended up putting them back in the closet and picking something else. She hates the way she looks in them from behind and the underwear lines that they create. A lingerie saleswoman insisted she'd find a solution in the shapewear section. Blakely peels off the shorts and decides she's done here.

9:31So it's back to square one. But that doesn't mean she's going to give up. In fact, she's going to find something to wear under these pants.

9:46A few days later, Blakely sachets across the rooftop toward the bar. She's wearing her white pants and a pair of snazzy sandals. Feeling good. The night before, she had a breakthrough. She cut off the feet of a pair of pantyhose. The top of the hosiery features a control top, extra layers of nylon that flatten her stomach, thighs, and butt. The tights are made of a thin enough material that the fabric of the pants easily slide over them. And without the pantyhose feet, she can wear her open-toed sandals. This is the solution she was looking for this whole time. Blakely orders a Cosmo and finds her friend.

10:23The two start chatting, but as they continue to stand there, Blakely feels the bottom of her pantyhose, the cuff where she cut off the feet, start to roll up her leg. She shifts uncomfortably as the legs continue to creep up. She can feel them bunching up underneath her pants. Blakely tries to stay focused on what her friend is saying, but eventually the distraction is just too much. She excuses herself to the bathroom.

10:51Inside the stall, she adjusts the pantyhose and heads back out to the party. But not much later, you know it, the legs roll back up again. Blakely clenches her jaw, frustrated. She thought she'd found the perfect solution. If only somebody made control-top pantyhose without the feet that didn't roll up, they'd have a hit business on their hands. Yeah. You might be thinking here, this sounds a lot like Kim Kardashian's aha moment with those teabag-dyed tights. And it is. Except Blakely isn't a household name, and her bank account is missing a few zeros. Blakely freezes in place, her drink halfway to her mouth, an idea striking her.

11:37If no one else is making this product, then she should. She has$5 ,000 saved up, and now she feels confident enough in this idea she's willing to put it toward getting this new business off the ground. Blakely downs the last of her drink with new determination. She walked into this party as a sales trainer, but she's walking out as an entrepreneur. Some people will see what's coming here. Some won't. If there's anything that separates a budding entrepreneur from, say, someone who dreams about success, it might be this. They have an intuitive sense of how to leverage personal experience. And as you're about to hear, Blakely may not have known exactly how to do the leveraging.

12:21After all, what did she know about the fashion business? But she did know this much. She identified a problem and a possible solution she could profit from if she could find the right path forward. She might not know how to get there from here, as they say. But with persistence, she'd find a way.

12:42Over the next year, Blakely throws herself into her new endeavor. She logs hours in her day job training people on how to self-axe machines and printers, but she spends her nights and weekends developing what she calls her control top footless pantyhose. She needs a prototype and a patent, and with only$5 ,000 to spend, she has to do almost everything herself. She buys samples of different kinds of elastic and lace. At home, she paperclips the swatches to the bottom of pantyhose to see which works best. She reads up on patents and trademarks, preparing a patent application to make sure her invention will be protected.

13:18She holds up in the Georgia Tech library, reading through every existing patent registered in the undergarment category. It's an arduous undertaking, but by the end, she believes in her product more than ever. There really isn't anything like it, but she knows she needs professional help for the prototype. 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 and asking them to help her make a prototype. Each and every one turns her down. Some are blunt, telling her her idea's stupid and will never sell.

13:59One day on a business trip for a sales training job, she's alone in her hotel room, feeling down. She spent the better part of a year working on this invention, and she doesn't have much to show for it. She still believes in it, but seems like no one else does. And she's just not sure what to do next. She turns on the TV and flips to her favorite comfort watch, The Oprah Winfrey Show. A few minutes later, her eyes go wide. She can't believe what she's seeing. Today, in order, because I have these shoes and it's hard and I didn't want the toe, so I cut my pantyhose and they're right there. It feels like a sign from the universe.

14:40If Oprah is using the same trick Blakely did, lots of other women must be too. And if not, they sure will be now. Blakely decides she's not going to accept defeat. The hosiery manufacturers don't yet understand what she's trying to do, but maybe they will if she can explain her idea in person. When she's back in Atlanta, she takes a week's vacation from her day job and drives up to North Carolina. But even pitching her idea in person and turning up her charm, the managers still don't think her idea is promising. Two weeks later, she gets a phone call. It's one of the managers who turned her down from up in North Carolina.

15:19He says he still doesn't think the footless pantyhose thing will take off, but he mentioned the idea to his daughters, and they both thought it sounded great and urged him to work with Blakely. So now he's decided to help Blakely make that prototype. For the next year, she goes back and forth from Atlanta to North Carolina, working with the product development team to create the perfect sample. Finally, in summer 2000, two years after she had that idea for control top footless pantyhose, Blakely has her prototype. Hitting mid-calf with a cuff that prevents the leg from rolling up, they're smooth and thin and tighten and flatten the midsection and thighs.

16:00She also has a patent for her invention and a name for her company, Spanx. She liked how the cheeky name signals that this is a different approach to shapewear. At the last minute, she changes the spelling to use an X at the end to make it easier to trademark. Now, in the era of department stores, she just needs to find a store to carry her product.

16:29In summer 2000, Blakely is in Dallas, Texas, sitting across from the head hosiery buyer for the department store, Neiman Marcus. Over the past couple of months, Blakely has persistently called this woman, leaving voicemail after voicemail, until finally the buyer granted Blakely a 10-minute meeting. With only 10 minutes to make her case, Blakely does not waste any time. She pulls out the prototype and lays it on the table. I introduce you to Spanx. The buyer's eyebrows shoot up, but Blakely pushes on. She knows the name is a little risque, but she likes it. This is a product that's going to change women's lives.

17:08Huh. That's a bold claim. It is, but I stand by it. With Spanx on, women can wear anything they want and feel confident and empowered. They won't be worried about their panty lines while giving a presentation to the board. they'll dance away at that wedding without worrying about cellulite. Look, you're clearly very passionate about this. But the truth of the matter is that the hosiery market is facing a downturn. Women just aren't buying pantyhose like they used to. I know. I've spent the better part of the past year with a bunch of hosiery designers in North Carolina. I've heard all about the softening sales.

17:49But Spanx is different. This is hosiery made for women by a woman. Blakely leans across the table like she's sharing a secret. Did you know that before working with me, my manufacturer had never tested any other products on an actual woman? They only used a plastic mannequin to assess size. Spanx are comfortable. I can attest to it. I tested them myself. Hmm, I just don't know. Will you come to the bathroom with me? The buyer looks at Blakely horrified. Excuse me? Blakely gulps. She thought showing the buyer the before and after of Spanx using her own body and white pants would be cute and memorable.

18:35But looking at this woman's face, she realizes just how weird it is to invite a stranger to the bathroom. She needs to wow this buyer and prove to her that Spanx is the game-changing product Blakely knows it is. She doesn't figure out a way to fix this. she won't be able to get Spanx into actual stores, and it will remain nothing more than a prototype.

19:02Ready or not? Yep, the holidays are coming, and I'll be honest, I love having friends and family over, but I don't love realizing at the last minute that my serving pieces look like they've been through one too many dinner parties, or that the guest room is more college dorm chic than holiday cozy. Know what I mean? Well, that's where Wayfair comes in. We just ordered some new serving plates, a new wreath for the door, a set of crisp new sheets, and suddenly the house feels just about guest ready. Even better, it didn't feel like a chore. It felt fun. But I've been here before, I'll be honest.

19:35My secret? The Wayfair app. What I love most is how Wayfair has literally everything you need. That's no exaggeration. I was surprised to find high-quality cookware that's perfect for hosting those big family dinners. And let me tell you something, delivery was a breeze, free and fast, even for the larger items. Whether you're looking to spruce up your kids' rooms with festive touches or need new bedding for the guest room, Wayfair's got you covered. From Christmas trees and wreaths to inflatables for the yard, they're truly a one-stop shop for holiday prep. And the best part? There's something for every style and every budget.

20:11I can't wait to tackle more of my holiday home goals with Wayfair. It just makes getting ready for the season so much easier. leaving more time to enjoy with the family. That's what it's all about. Get organized, refreshed, and ready for the holidays for way less. Head to Wayfair.com right now to shop all things home. That's W-A-Y-F-A-I-R dot com. Wayfair. Every style. Every home. This episode is brought to you by PrizePix. You and I make decisions every day, but on PrizePix, being right can get you paid. Don't miss any of the excitement this season on PrizePix. where it's good to be right. Look, I'm big on college football, but getting really interested in picking the pros, all eyes on Patrick Mahomes, of course, as he continues to lead the Chiefs offense and hold on to his status as one of the league's best.

20:59But then you got Josh Allen, hugely dynamic quarterback. Playmaking ability for the Bills makes him one of those talents you gotta keep tabs on. Wanna put your money where your mind is? PrizePix is the only app that offers stacks. This means you can pick the same player up to three times in the same lineup. You want to pick, say, more on Josh Allen's pass yards, rush yards, touchdowns? Well, now you can pick all of them in the same lineup, only on PrizePix. Follow other PrizePix players directly on the app and copy their lineups in one click, whether it's a friend, a celebrity partner, or just someone whose picks you really like.

21:34Hit the follow button and check out every lineup they create in the new feed tab on PrizePix. Download the PrizePix app today and use code BW to get$50 in lineups after you play your first$5 lineup. That's code BW to get$50 in lineups after you play your first$5 lineup. PrizePix. It's good to be right.

22:12It's summer 2000 in Dallas, Texas. Sarah Blakely sits, dumbfounded. She can't believe she just asked the head hosiery buyer of Neiman Marcus to go to the bathroom with her. Why did she think this would be a good idea? The buyer shifts in her chair, preparing to stand up. That's it. Blakely blew her chance to pitch the product she spent the past two years in her life savings on. She has to do something. Ah, wait, sorry, that came out wrong. So you don't want me to go to the bathroom with you? No. Well, yes. I want to show you what Spanx can do. If you see the difference Spanx makes, you'll understand why I say this is a product that will change lives.

22:57The buyer purses her lips. All right, fine, let's go. The buyer leads Blakely down the hall to the women's restroom. Inside, under the fluorescent lights, Blakely gestures toward her legs. 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. She spins around, ignoring the buyer's raised eyebrows. This is Blakely's last chance, and she's going to do whatever she needs to do, even if it is a little uncouth. This is what I look like with no spanks. See the panty lines? The cellulite? This is the before picture, if you will.

23:41You have that image in your head? I do. Okay, hang on a second. She steps inside the stall and quickly takes off her pants, pulls on the spanks, shimmying them over her hips. Once she's redressed, she steps back out and spins around. Now look at my butt again. See how much firmer it looks? Plus, the pants drape like a dream with no panty lines. Lakeley looks over her shoulder and the buyer is nodding her head, impressed. You're right. I totally get it now. Really? Yes, it'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. Does that sound good?

24:27Oh my God. Yes, that's great. A woman walks into the bathroom and slinks into a stall. How about we go over the details back in my office? Blakely eagerly agrees, and the two exit the restroom. Hey, remember what I was saying about persistence earlier? There's something that goes hand in hand with that. Resilience in the face of rejection. You know, when Blakely was shopping her idea around with manufacturers, she got no at every turn until someone said yes. Same thing with this pitch. You may first think you've blown it, but after many years of doing business wars, I've never come across a success story that ends with no can do, or you can't get there from here.