Private equity will need to keep up with Kim Kardashian.
In the big news last week, Kim Kardashian would enter the world of private equity. There was the expected response from online commenters who must have their opinion known. Okay, this is one of those opinions, but not for the reasons the internet mob would typically write about with “Kim K” and “Private equity” news.
Here’s the reality: Kim Kardashian is about to shake up the world of private equity with SKKY Partners. Once you look past the social equity and influence, there’s a core skill that she has (that I frankly envy). She’s a genius at building a brand.
Sunny Bonnell, branding expert and founder of Motto, was interviewed in a recent Yahoo! Finance article where she correctly stated, “Brands are powerful, brands build equity, and Kim Kardashian is undeniably a seismic influence,” Bonnell said. “A lot of people underestimate her... nobody ever sees the rebel coming.”
She fundamentally understands the core elements of building a value-adding, modern brand. Her family has built an entire empire from the strategy. It’s a model that’s worked so far on SKNN by Kim and Skims. It’s one that I imagine she will continue to apply to the consumer, hospitality, luxury, digital commerce, and media sectors in her focus.
In addition to private equity firms themselves needing to be different from one another, Kim’s approach to amplifying brands that will bring attention to the massive value that focused branding can provide to a business.
Building a modern brand is much simpler to explain than it is to execute. But the approach that any brand should take is identifying and creating a plan around the complete brand story. Below is a chart we use to build our brands and ensure a thoughtful experience.
In Kim K’s case, she will build out all these elements using all the tools in her toolbox. Most importantly, she will create a close connection between her invested brands, culture, and people. It’s a two-way street.
Kim can listen to her audience and focus on what’s around the corner. The other direction follows the modern way of brand building championed by experts like Marty Neumeier. The company creates the customer group, which builds the brand momentum, which then sustains the companies bottom line.
Her social savvy will be supercharged and capitalized on, which at its most fundamental level, is branding—influencing peoples feeling about a product or organization. Modern branding is the difference maker that private equity must understand if they wish to keep up with what Kim is doing at SKKY Partners.
She’s not in this because she has a passion for operations and improving EBITDA (although, if she is, more power to her). I think she’s in this because she knows she can make big moves with the proper financial infrastructure and brand development.
Let’s see what happens next.
Are you in private equity and want to learn more about branding? Want to make a low-risk, high-reward investment into a new brand?
