Spanx, Inc. is an American underwear maker focusing on shaping briefs and leggings, founded in
Atlanta
Atlanta ( ) is the capital and most populous city of the U.S. state of Georgia. It is the seat of Fulton County, the most populous county in Georgia, but its territory falls in both Fulton and DeKalb counties. With a population of 498,715 ...
,
Georgia
Georgia most commonly refers to:
* Georgia (country), a country in the Caucasus region of Eurasia
* Georgia (U.S. state), a state in the Southeast United States
Georgia may also refer to:
Places
Historical states and entities
* Related to the ...
. The company manufactures mainly
pantyhose
Pantyhose, called sheer tights, or tights, are close-fitting legwear covering the wearer's body from the waist to the toes. Mostly considered to be a garment for women and girls, pantyhose first appeared on store shelves in 1959 for the advertis ...
and other
underwear
Undergarments, underclothing, or underwear are items of clothing worn beneath outer clothes, usually in direct contact with the skin, although they may comprise more than a single layer. They serve to keep outer garments from being soiled o ...
for women and, since 2010, produces male underwear as well. Spanx specializes in
foundation garment
Kim Kardashian in Shapewear-dress
A foundation garment (also known as shapewear or shaping underwear) is an undergarment designed to impermanently alter the wearer's body shape, to achieve what some view as a more fashionable figure. The func ...
s intended to make people appear thinner or more shapely.
History
Founding
![Sara Blakely](https://upload.wikimedia.org/wikipedia/commons/f/fc/Sara_Blakely.jpg)
Following her graduation from
Florida State University
Florida State University (FSU) is a public research university in Tallahassee, Florida. It is a senior member of the State University System of Florida. Founded in 1851, it is located on the oldest continuous site of higher education in the st ...
(FSU) in 1993,
Walt Disney World Resort
The Walt Disney World Resort, also called Walt Disney World or Disney World, is an entertainment resort complex in Bay Lake, Florida, Bay Lake and Lake Buena Vista, Florida, Lake Buena Vista, Florida, United States, near the cities of Orlando ...
employee
Sara Blakely
Sara Treleaven Blakely (born February 27, 1971) is an American businesswoman and philanthropist. She is the founder of Spanx, an American intimate apparel company with pants and leggings, founded in Atlanta, Georgia. In 2012, Blakely was named in ...
joined local stationery company Danka to sell
fax machine
Fax (short for facsimile), sometimes called telecopying or telefax (the latter short for telefacsimile), is the telephonic transmission of scanned printed material (both text and images), normally to a telephone number connected to a printer o ...
s door-to-door. In the heat and humidity of Florida, she tried unsuccessfully to find pantyhose that did not have seamed toes and that did not roll up the leg after she cut them.
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
A prototype is an early sample, model, or release of a product built to test a concept or process. It is a term used in a variety of contexts, including semantics, design, electronics, and Software prototyping, software programming. A prototyp ...
was completed over the course of a year and involved Blakely, her mother, and her friends personally testing the garments. This was innovative at the time, as the industry did not test products with people. 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.
Blakely finalized her
patent
A patent is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an enabling disclosure of the invention."A p ...
application with a patent attorney prior to her submission to the
United States Patent and Trademark Office
The United States Patent and Trademark Office (USPTO) is an agency in the U.S. Department of Commerce that serves as the national patent office and trademark registration authority for the United States. The USPTO's headquarters are in Alexa ...
(USPTO). Following the submission of the online application, Blakely then worked on the packaging of her product, which she intended to color red for the purpose of boldness, as the other brands at the time were all packaged in "beige, white or grey." Additionally, Blakely used three animated images of different-looking women, which was also novel at the time, when other brands displayed the same type of female model.
Requiring a brand name for her product, Blakely was frustrated after failing to settle on a title that satisfied her, after a year and a half of
ideation. At the time she finalized her brand name, Blakely knew that
Coca-Cola
Coca-Cola, or Coke, is a carbonated soft drink manufactured by the Coca-Cola Company. Originally marketed as a temperance drink and intended as a patent medicine, it was invented in the late 19th century by John Stith Pemberton in Atlanta ...
and
Kodak
The Eastman Kodak Company (referred to simply as Kodak ) is an American public company that produces various products related to its historic basis in analogue photography. The company is headquartered in Rochester, New York, and is incorpor ...
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. Blakely then used her
credit card
A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the o ...
to purchase the "Spanx" trademark on the USPTO website for US$150.
Launch
In 2000, Blakely launched the Spanx brand from her apartment, 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.
Blakely previously conducted a meeting with a representative of the
Neiman Marcus Group, at which she changed into the product in the ladies restroom in the presence of the Neiman Marcus buyer to prove the benefits of her innovation. Blakely's product was sold in seven Neiman Marcus stores as a result of the meeting;
Bloomingdales
Bloomingdale's Inc. is an American luxury department store chain; it was founded in New York City by Joseph B. and Lyman G. Bloomingdale in 1861. A third brother, Emanuel Watson Bloomingdale, was also involved in the business. It became a div ...
,
Saks, and
Bergdorf Goodman
Bergdorf Goodman Inc. is a luxury department store based on Fifth Avenue in Midtown Manhattan, New York. The company was founded in 1899 by Herman Bergdorf and was later owned and managed by Edwin Goodman, and later his son, Andrew Goodman.
To ...
soon followed.
[Forbes: "How Sara Blakely of Spanx Turned $5,000 into $1 billion" by Clare O'Connor]
March 14, 2012
2000 onwards
Following the establishment of the company, Blakely's then-boyfriend eventually became Spanx's
chief operating officer
A chief operating officer or chief operations officer, also called a COO, is one of the highest-ranking executive positions in an organization, composing part of the "C-suite". The COO is usually the second-in-command at the firm, especially if t ...
(COO) and met
Laurie Ann Goldman
Laurie Ann Goldman is an American businesswoman and investor. She is best known for her time serving as the Chief Executive Officer of Spanx Inc. from 2002 to 2014. AdAge ranked her in its “50 Top Marketing Executives” list in 2005. In Augus ...
at the
Saks Fifth Avenue
Saks Fifth Avenue (originally Saks & Company; Colloquialism, colloquially Saks) is an American Luxury goods, luxury department store chain headquartered in New York City and founded by Andrew Saks. The original store opened in the F Street and ...
in Atlanta in 2001, while she was on maternity leave from her employer at the time, Coca-Cola. Goldman was specifically looking for a Spanx product, and the pair exchanged contact details—Goldman became the
CEO
A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
of Spanx in 2002.
Writing for ''
Fortune
Fortune may refer to:
General
* Fortuna or Fortune, the Roman goddess of luck
* Luck
* Wealth
* Fortune, a prediction made in fortune-telling
* Fortune, in a fortune cookie
Arts and entertainment Film and television
* ''The Fortune'' (1931 film) ...
'' 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.”
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.
Goldman resigned from the company in February 2014, after over 10 years at the head of the Spanx.
Gregg Ribatt, who had previously worked as an executive for Bennett Footwear, Stuart Weitzman Holdings and Collective Brands' Performance & Lifestyle Group, was appointed as interim
chief executive officer
A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
. Ribatt's appointment generated discussions about a potential footwear expansion by Spanx according to a statement Blakely made in October 2013 explaining her ambition to design the world's most comfortable high-heel shoe prior to retirement.
In Blakely's June 2014 ''
Forbes
''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also re ...
'' 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.
However, speculation arose about a possible
IPO
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...
following Goldman's resignation.
In July 2014, Jan Singer, formerly of
Nike
Nike often refers to:
* Nike (mythology), a Greek goddess who personifies victory
* Nike, Inc., a major American producer of athletic shoes, apparel, and sports equipment
Nike may also refer to:
People
* Nike (name), a surname and feminine given ...
, joined Spanx as CEO.
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.
It was announced on October 20th, 2021 that Sara Blakely, owner of Spanx, had sold a majority stake in the business to
Blackstone.
The company was valued at 1.2 billion US dollars. The deal was prepared by an all-female investment team from Blackstone, and it was announced that the
Board of Directors
A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit organiz ...
would be all-female under Sara Blakely as the Executive Chairwoman.
Products and marketing
Products
![Spanx Shaping Pantyhose Super Control Sheers top front](https://upload.wikimedia.org/wikipedia/commons/6/69/Spanx_Shaping_Pantyhose_Super_Control_Sheers_top_front.jpg)
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.'"
Spanx started manufacturing body-shaping undergarments for men ("Spanx for MenMANX") in 2010,
and then introduced denim to an expanding Spanx product line for the brand's "Fall" range in March 2014.
Marketing
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.
However, Spanx received a marketing boost shortly afterwards, when
Oprah Winfrey
Oprah Gail Winfrey (; born Orpah Gail Winfrey; January 29, 1954), or simply Oprah, is an American talk show host, television producer, actress, author, and philanthropist. She is best known for her talk show, ''The Oprah Winfrey Show'', br ...
endorsed the product as one of her "Favorite Things" on her television show in 2000. 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.
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.
Other celebrities who wear the brand are
Gwyneth Paltrow
Gwyneth Kate Paltrow (; born ) is an American actress and businesswoman. She is the recipient of various accolades, including an Academy Award, a Golden Globe Award, and a Primetime Emmy Award.
Paltrow gained notice for her early work in films ...
and
Jessica Alba
Jessica Marie Alba ( ; born April 28, 1981) is an American actress and businesswoman. She began her television and movie appearances at age 13 in '' Camp Nowhere'' and '' The Secret World of Alex Mack'' (1994), and rose to prominence at age 19 ...
.
Blakely was later caught on
CCTV
Closed-circuit television (CCTV), also known as video surveillance, is the use of video cameras to transmit a signal to a specific place, on a limited set of monitors. It differs from broadcast television in that the signal is not openly t ...
by a department store repositioning her products so they were displayed more prominently.
Corporate affairs
Ownership
Spanx is a private company and has not released financial information. Forbes estimates its value at $540 million in 2021. Blakely owns the entirety of the brand and employed approximately 100 personnel as of 2011.
[ Goldman was the CEO of Spanx from 2002 to February 2014, when she resigned.]
Manufacturing
In search of a manufacturing partner, Blakely searched ThomasNet
The ''Thomas Register of American Manufacturers'', now ThomasNet, is an online platform for supplier discovery and product sourcing in the US and Canada. It was once known as the "big green books" and "Thomas Registry", and was a multi-volume ...
to find North Carolina hosiery manufacturers. Highland Mills in Charlotte, on the recommendation of the CEO’s daughters, ultimately transformed Blakely’s ideas into a prototype sufficient to interest Neiman Marcus.
In 2000, the first year of the company’s existence, Blakely recruited friends to fill orders out of her Atlanta apartment, and generated $8 million in retail sales. Because Highland had no interest in distribution, Blakely took Spanx production to a small mill in Siler City, which then went out of business. Acme-McCrary Corporation, a hosiery mill founded in Asheboro
Asheboro is a city in and the county seat of Randolph County, North Carolina, United States. The population was 25,012 at the 2010 census. It is part of the Greensboro–High Point metropolitan area of the Piedmont Triad and is home of the sta ...
, 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.
References
External links
*
{{Authority control
Clothing companies of the United States
Clothing manufacturers
Hosiery brands
Lingerie brands
Manufacturing companies based in Atlanta
American companies established in 2000
Clothing companies established in 2000
2000 establishments in Georgia (U.S. state)