Spanx

Spanx, Inc. is an American underwear maker focusing on shaping briefs and leggings, founded in Atlanta, Georgia.^[2] The company manufactures mainly pantyhose and other underwear for women and, since 2010, produces male underwear as well.^[3] Spanx specializes in foundation garments intended to make people appear thinner or more shapely.

History

Founding

Following her graduation from

Investing her life-savings of $5,000, she moved to Atlanta at age 27, where she researched and developed a hosiery concept predominantly on her own. The creation of the initial product prototype was completed over the course of a year and involved Blakely, her mother, and her friends personally testing the garments. Blakely's research revealed that the industry had previously been using the same size waistband for all hosiery products to cut costs, and a rubber cord was inserted into the waistband. For her product development, Blakely created different waistbands to suit different-sized consumers.^[7]

When determining the brand name, Blakely knew that Coca-Cola and Kodak were two of the most recognized brand names in the world, and that both contained a strong "k" sound. Blakely read that the founder of Kodak liked the sound so much that he used it as the beginning and end of his brand name and then proceeded to create a functioning word based upon this foundation. The name "Spanks" eventually came to Blakely, and she decided to replace the "ks" with an "x", as her research had shown that constructed names were more successful and were easier to register as a trademark.^[7]

Launch

In 2000, Blakely launched the Spanx brand from her apartment,^[8] undertaking all initial calls and marketing herself. Her boyfriend at the time, a healthcare consultant, later resigned from his job and joined Blakely in the running of the nascent business.^[7]

Blakely previously conducted a meeting with a representative of the

Writing for Fortune magazine in February 2014, Colleen Leahey identified Goldman as a key aspect of the company's successful growth:

Goldman crafted a business model for the company based on lessons she learned during her 10-year stint at Coke: thinking big, starting small, and scaling fast. She advised her team at SPANX to focus on product quality over profit margins. “Every time somebody puts on a SPANX product, one of two things can happen: Our brand can get stronger, or our brand can get weaker. We gain leverage or we lose leverage.”^[11]

In the first half of 2014, Blakely worked on building the company's first standalone retail stores in shopping malls along the East Coast of the U.S., and also introduced denim to an expanding Spanx product line for the "Fall" range in March.^[12]

Goldman resigned from the company in February 2014, after over 10 years at the head of the Spanx.

In Blakely's June 2014 Forbes profile, the publication claims that the company generates "over $250 million in annual revenues and net profit margins estimated at 20%", while Blakely is very strongly committed to maintaining the private status of Spanx.^[12] However, speculation arose about a possible IPO following Goldman's resignation.^[13]

In July 2014, Jan Singer, formerly of Nike, joined Spanx as CEO.^[14]

In April 2020, Spanx owner Sara Blakely partnered with longtime friend and restaurant owner Justin Anthony to feed frontline workers to fight the coronavirus. Workers at Atlanta's Children's Healthcare and its associated clinics receive free typical South African meals.^[15]

It was announced on October 20, 2021, that Sara Blakely, owner of Spanx, had sold a majority stake in the business to

The company was valued at 1.2 billion US dollars.

Board of Directors

would be all-female under Sara Blakely as the Executive Chairwoman.

Products and marketing

Products

This section needs expansion. You can help by adding to it. (June 2014)

The brand produces lines with names such as "Bod-a-Bing!" and "Hide & Sleek." In 2009, Spanx launched a deluxe collection called "Haute Contour" that included items such as a lace thong with waist reinforcements and color options like pink. Following the release, Blakely explained, "I said, 'Let's make it beautiful ... like shapewear in disguise.'"^[19]

Spanx started manufacturing body-shaping undergarments for men ("Spanx for Men – MANX") in 2010,^[20][21] and then introduced denim to an expanding Spanx product line for the brand's "Fall" range in March 2014.^[12]

Marketing

This section needs expansion. You can help by adding to it. (June 2014)

During the inception of Spanx, Blakely was contacting friends and acquaintances, including those from her past, and asking them to seek out her products at select department stores in exchange for a check that she would send to them by mail as a token of appreciation.^[7] However, Spanx received a marketing boost shortly afterwards, when Oprah Winfrey endorsed the product as one of her "Favorite Things" on her television show in 2000.^[22] Prior to officially establishing the company, Blakely had sent a basket of Spanx products to Winfrey's television program, with a gift card that explained what she was attempting to develop, and this garnered Winfrey's attention.^[7]

Winfrey's production team explained to Blakely that, while Winfrey usually only promoted the product itself, they sought to travel to Blakely's apartment in Atlanta and interviewed her in her home, as Winfrey was especially interested by the entrepreneur's story. At the time, Blakely was still a fax machine salesperson and needed to enlist the help of friends to act as employees for the purposes of the filming of the episode.^[7]

Other celebrities who wear the brand are Gwyneth Paltrow and Jessica Alba.^[19]

Blakely was later caught on

Spanx is a private company and has not released financial information. Forbes estimates its value at $540 million in 2021.[24] Blakely owns the entirety of the brand and employed approximately 100 personnel as of 2011.^[21] Goldman was the CEO of Spanx from 2002 to February 2014, when she resigned.^[25]

Manufacturing

Highland Mills in Charlotte manufactured the prototypes presented to Neiman Marcus.^[26]

In 2000, Blakely recruited friends to fill orders out of her Atlanta apartment.^{[citation needed]} Because Highland had no interest in distribution, Blakely took Spanx production to a small mill in Siler City, which then went out of business.^{[citation needed]} Acme-McCrary Corporation, a hosiery mill founded in Asheboro, North Carolina, in 1908, then took over production and distribution. Sales have grown from about $15 million in 2002, when Acme-McCrary began working with Blakely, to more than $400 million in 2014. The North Carolina firm is no longer the sole manufacturer of Spanx, but remains highly involved with Blakely in new product development, yarn specifications and manufacturing expertise.^{[citation needed]}

References