Investor Critiques Rihanna’s INSANE $1 Billion Lingerie Business
Summary
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Rihanna's wealth largely comes from her business ventures, not music. Her company, Savage X Fenty, showcases innovative strategies any business owner can model, regardless of celebrity status.
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She successfully partnered with LVMH, a company with a vast distribution network of 118 factories and over 6,000 retail stores worldwide. By leveraging their distribution, manufacturing, and online sales expertise, she filled gaps in her own capabilities.
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Selecting the right market is crucial. Rihanna identified an underserved market by offering 40 different shades of nude lingerie catering to diverse skin tones, which aligned with her personal background and brand on inclusivity and body positivity.
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Her products are affordably priced, allowing a wide audience to purchase and making it easy for people to switch from other brands to hers due to her strong personal brand.
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Rihanna's brand and personal story—her motherhood, body changes, and unique style—make her relatable, helping her capture a loyal audience that switches to her products due to their affection for her.
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Her affiliate marketing strategy, leveraging the followings of mega influencers like Bella Hadid and Lizzo, has greatly expanded her brand's reach and reinforced its beauty ideals.
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The innovative membership model includes discounts, personalized recommendations, skippable purchase options, and a credit system that acts like layaway, encouraging continual customer engagement without immediate purchase pressure.
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Rihanna uses a strategic blend of whisper, tease, and shout phases in her launch campaigns to build anticipation and drive sales.
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Her content strategy involves tailoring posts to each platform's unique nature—more visual and aesthetic on Instagram, trendy and collaborative on TikTok, and longer form and educational on YouTube.
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The membership offer is designed as a win-win for the customer by including numerous benefits like early access, free shipping, and a free gift after every fifth billing period, enhancing loyalty and encouraging repeated engagement.
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By personalizing her approach through a lead magnet funnel that offers a tailored shopping experience, she effectively converts interest into purchases, building long-term customer relationships.
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How To Take Action
I would suggest implementing a few key strategies from Rihanna's success with Savage X Fenty to grow your small business.
First, think about partners who can help fill gaps in your business. Maybe you can't reach stores across the country or you need help with online sales. Find someone like LVMH did for Rihanna who can provide that distribution or manufacturing expertise you lack.
A good way of doing market research is identifying underserved customer needs. Don’t just sell what everyone else is selling. Discover something your unique audience lacks and provide it, like Rihanna did with her wide range of lingerie for different skin tones.
Keep your pricing accessible. Make sure your products are affordable so more people can buy from you. This way, more people can switch from other brands to yours without worrying about cost.
For marketing, consider affiliate strategies. Reach out to influencers or well-known people in your niche to help promote your product. This can greatly expand your audience without huge advertising costs.
Think about adding a membership or subscription model for loyal customers. Offer discounts, exclusive content, or special deals to encourage them to keep buying from you regularly. Make it flexible, like a skippable monthly plan, so they can get what they need without feeling pressured.
Lastly, tailor your content for different platforms. Use more visuals on Instagram, trendy videos on TikTok, and tutorials or behind-the-scenes on YouTube. This ensures you engage effectively with your audience on each platform.
These strategies focus on collaboration, understanding your market, value-based pricing, smart marketing, and engaging content to drive sustained business growth.
Quotes by Alex Hormozi
"Make sure that we're going after a clear pain point that's not being served"
– Alex Hormozi
"One of the things that Rihanna does exceptionally well is she makes organic content"
– Alex Hormozi
"Rihanna is worth $1.7 billion but the majority of that money is not from music"
– Alex Hormozi
"You can make Partnerships for that make sense"
– Alex Hormozi
"Brand advertising outperforms direct response advertising every time"
– Alex Hormozi