This is about SKIMS co-founder Jens Grede on building brands through pop culture. He says pop culture is the only way to break through fragmented media. He senses a cultural shift from futurism to nostalgic comfort, boosting brands like Olive Garden. He thinks big brands will win more because physical stores are hard to replicate and social algorithms no longer favor newcomers. Key holdings: SKIMS (innovative product and platform strategy, app now over 20% of sales), Abercrombie & Fitch (he recommended buying 5 years ago, consumers still buy despite scandals), and Victoria's Secret (consumers still buy, but Wall Street narrative lags).
Guest Jens Grede, co-founder and CEO of SKIMS, delves into the intersection of brand building, pop culture, and the consumer economy. Jens Grede argues that in an era of media fragmentation, pop culture is the "only remaining hack" to penetrate the consumer economy, and brands must act at the "speed of culture" rather than on "corporate planning cycles."
Jens Grede asserts that in today's fragmented media landscape, pop culture is one of the few effective ways to break into the consumer market. He notes that individual social media feeds are completely different, and people can even live in a "fly-fishing" world. The only forces that can cross these political, racial, and religious boundaries are pop culture and sports. Therefore, if a brand wants mass awareness, it must attach itself to pop culture, because "brand awareness today is largely a function of a personal image and culture." He cites the example that even if someone invested $1 billion to launch a vodka brand, its brand awareness would not compare to Dwayne "The Rock" Johnson's tequila brand, because Johnson's personal value itself is a massive awareness asset.
Jens Grede observes that current social culture is undergoing a major shift, from optimism about the future to a "craving for comfort" in certainty. He believes this stems from widespread uncertainty about technological disruption and the future. As a result, people are "flocking to things that make us feel good," such as Olive Garden, country music, Applebee's, and other brands showing strong performance. Using the example of SKIMS creating a "classic American diner" experience (Skims Diner) in Los Angeles, he illustrates strong consumer demand for "warm, nostalgic, non-threatening" experiences, with reservations selling out within minutes. Grede summarizes this trend as a shift from "futurism" to "nostalgia" and believes it aligns with a more protectionist social mood, a reaction against past globalization.
Jens Grede argues that in the current environment, "big brands will increasingly win," and some once-declining brands are showing surprising resilience. He cites Abercrombie & Fitch as an example: despite its founder's notorious reputation, consumers have not abandoned the brand. He recommended buying the stock five years ago. Similarly, although Victoria's Secret faces criticism and outdated aesthetics, younger consumers are still buying. Grede points out a huge gap between Wall Street's narrative and actual consumer behavior. He believes traditional giants have offline distribution networks that are hard to replicate (about 80% of retail occurs in physical stores), and building new physical stores is costly, creating significant barriers for new entrants. Meanwhile, social media algorithms have shifted from "follower-driven" to "interest-driven," no longer loyal to brands, making it harder for new brands to build communities for free on social platforms—they must "pay to play."
Jens Grede elaborates on the key factors behind SKIMS' success, emphasizing that product is "paramount," and that successful timing is closely tied to changes in supply chains and consumer trends. He attributes the brand's breakthrough to three points: 1) Product Innovation: SKIMS focuses on creating a unique sensory experience based on fabric, akin to the texture of "Vucciria" or the feeling of Starbucks' first sip, creating a "Coke vs. Pepsi challenge" differentiation. 2) Timing and Supply Chain: Drawing historical parallels, he notes that brand success often coincides with macro shifts, such as Les Wexner's empire with the expansion of American malls, or Michael Kors benefiting from the post-2008 financial crisis demand for "designer affordability." SKIMS seized the opportunity from changes in consumer lifestyles (the split between home and out-of-home wardrobes) and the stagnation of legacy competitors' innovation. 3) Platformization Strategy: Grede emphasizes that SKIMS' long-term goal is not to be a "celebrity brand" but a "pop culture platform." He cites the examples of the Jordan Brand and Beats headphones, noting that their success lies in transforming the founder's influence into a platform where other athletes and creators can also participate. SKIMS has been committed to this from day one, using a "Wouldn't it be cool?" decision-making model, acting at the speed of culture (not quarterly planning), and collaborating at high frequency and high risk with culturally relevant figures (e.g., NBA rising stars, stars of the series The White Lotus) to leverage "in-the-moment interest" for marketing.
| Position | Guest Stance (Bullish/Caution/Neutral) | Key Data |
|---|---|---|
| SKIMS | Bullish (holds and operates) | Founded nearly 6 years ago; once had 2 million customers on a waitlist; one year after app launch, it contributed over 20% of business |
| Abercrombie & Fitch | Bullish (previously recommended buying) | Market cap of $700-800 million five years ago; consumer purchasing behavior unaffected by brand's negative publicity |
| Victoria’s Secret | Neutral (cautions difference between consumer behavior and Wall Street narrative) | Consumers still buying; Wall Street view unchanged |
| Vucciria | Neutral (mentioned as positive example) | Focuses on product experience, not marketing-driven; contrasts with SKIMS |
| Tesla | Neutral (mentioned as positive example) | No advertising, driven solely by product strength |
| Starbucks | Neutral (used as business model comparison) | Built brand through innovation (e.g., Pumpkin Spice Latte) and quality premium; SKIMS models itself after it |
| Shein | Neutral (benchmark for supply chain efficiency) | Has 10x better unsold inventory management than peers |
| Moncler | Neutral (source of brand inspiration) | Founder Remo Ruffini combined high-performance ski brand with fashion culture |
| LVMH (Louis Vuitton) | Neutral (learning object) | Chairman Bernard Arnault remains objective, highly in sync with customer needs |
| Passes | Bullish (as an investor) | Founder Lucy Guo; provides a direct monetization platform for creators |
| Jordan Brand | Neutral (case study of platformization success) | 40-year history, based on Michael Jordan's influence, became a 40-year cultural platform |
| Beats by Dre | Neutral (case study of platformization) | Founder Dr. Dre; influence translated through athletes like LeBron James |
| Neutral (emerging power of closed networks) | Mentioned as a platform with strong influence | |
| Neutral (trust network for information sharing) | Groups (e.g., D1) become reliable information sources |
1. Pop culture is the only "hack" (Jens Grede): In an era of media fragmentation, pop culture is the only path that can cross all social boundaries (politics, race, religion) to reach the masses, making it the most effective means of penetrating the consumer economy.
2. Product is "paramount" (Jens Grede): Product is the "first, second, and third" priority for a company's success. Marketing is just "lipstick"; it can only accelerate or emphasize what already exists. "You need to create a product so great that even without marketing, you could get to the same place on the power of the product alone."
3. Culture is shifting from "futurism" to "nostalgic comfort" (Jens Grede): Uncertainty about the future has driven a craving for "comfort," reflected in the resurgence of country music, Olive Garden, classic TV shows like Friends, and the revival of "diner" culture.
4. "Big brands will increasingly win" (Jens Grede): Due to the capital barriers of offline distribution (80% of retail) and social media algorithms that disadvantage emerging brands, large, established brands will have structural advantages. Additionally, consumer behavior is often out of sync with Wall Street narratives, and investors should not underestimate the resilience of legacy brands.
5. Decisions must be made at the "speed of culture," not "corporate planning cycles" (Jens Grede): Brands should make quick decisions in the moment, like answering "What do you want to eat tonight?" rather than planning months in advance. "Pop culture is a 'dairy product'—it spoils." Adopt an intuitive "Wouldn't it be cool?" decision-making model, increase output frequency, and accept failure as part of the process.
6. "Individual voice" will surpass "institutional trust" (Jens Grede): In the "post-truth" era, individual opinions command higher trust than traditional media. People are more inclined to believe an "individual" (e.g., Elon Musk or AOC) than an institution like The Washington Post. Therefore, the era of building closed networks around individuals (e.g., creation platforms) has arrived.
7. "Transform on the way up" (Jens Grede, quoting Pierre-Yves Roussel): Most companies only start changing when performance declines, but then it's too late. The secret to success is to proactively change while the company is still growing, to avoid being trapped by the inertia of success.
8. SKIMS' long-term goal is to become a "pop culture platform" (Jens Grede): Its aim is not to be a "celebrity brand," but like the Jordan Brand, to become a lasting pop culture platform where other athletes and creators relevant to culture can join and share the brand's influence.