Physical touching (see notes for more information)Kanji Components:
Sex starts with caressing and touching and ends with caressing and touching.
Skin contact is very important for kids.
1. This word is part of the 和製英語
（わせいえいご）family; words that sounds like English but.. aren't. As this word is particularly hard to directly translate, it's better seen with examples. Skinship is simply touching, rubbing, carressing, etc with those that are close to you. You can have skinship with children, pets, and of course, 恋人. I yanked the second example and translation straight from Jim Breen.
2. I learned the word in class, but got the above 例文 from Googling 「スキンシップ」, and a site dealing with.. vibrators came up! The following sentence reads バイブを使うときにも、このことは忘れずにいて下さい。 I thought that was kind of funny.. the whole website can be found here
for all you perverts out there ;)