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Index

In a conference call with Matt Clements and Sarah Roberts from Barclays Equity Research, Achim Berg discusses the state of the European fashion industry, exploring key challenges and future opportunities.

investments

stateoffashion

futureoffashion

financialperformance

Barclays Fireside Chat

Over the past 25 years, the fashion and luxury industry has created significant value, reflected in the massive personal wealth amassed by its super-winners. Using Forbes data as a proxy, the industry now ranks as the third-largest wealth creator, behind technology and finance. Yet, much like the rapidly evolving fashion landscape, the list of billionaires and their net worth is also undergoing a dynamic redistribution. Examining the patterns of wealth creation within the fashion and luxury industry offers inSIGHTS not only into this industry’s evolution over time and its current state, but also into where it may be headed next.

Luxury

Book

hindsight

fastfashion

Out Now: HindSIGHT report No 1 

You've had a long career at McKinsey & Company and you set out on another path in 2024-what were some of your greatest takeaways from that experience and why was it the right time for a change?

I deeply enjoyed my journey at McKinsey & Company because I started as a generalist but found an unexpected passion for fashion and helped to build McKinsey’s apparel, fashion and luxury practice. But after 24 years with the firm, I also felt I wanted to focus on certain elements, like following my passion for research and thought leadership. I started with the State of Fashion report with Business of Fashion and I’ve written more than 40 white papers, but I wanted to do more in-depth research. More and more, I also enjoyed advising senior decision makers more than running and overseeing projects and large transformations. 

When I turned 50, I thought, I could stay on for another 10 years with McKinsey, but I could also make the attempt of being more consequential on what I really wanted to do. And after a long process, I concluded I could do that. And that process resulted in me founding FashionSIGHTS.

Tell us about FashionSIGHTS and your vision for it.

FashionSIGHTS is a corporate think tank—not a consulting firm—that is deeply rooted in research and deep experience and industry expertise that allows us to provide insights on fashion and luxury and, hopefully, helps contribute to a better understanding of what the future of fashion is.


So, from this vantage point, what is the future of fashion?

To answer that question, it's important to understand where we are and where we’re coming from. In the 20+ years I spent working in the industry and advising senior executives, I've seen a prosperous, highly profitable and adaptive industry that was obviously facing one or the other challenge, like consumption fatigue, but was still growing quite massively. I've seen “small” businesses that had $1 billion in sales that are now seeing $20-, $30-, $50 billion in sales. 

So, we've seen a massive growth, amazing success stories, incredible fortunes that have been created. But interestingly enough, if you read the news or talk to people in the industry, you very often get the story how difficult everything is and how much the industry is struggling. And yes, that has happened, but from a 10,000-meter view, the industry is doing much better than one would think, and it's much more profitable and successful than other industries, like grocery, for example. 

Volatility has no doubt increased, and we see a significant saturation in the big Western markets, which will not provide the levels of growth the industry is looking for. As a consequence, I think the next five to 10 years will be challenging, will require a high level of resilience, and will require different levels of innovation to cope. 

Still, I’m generally quite positive about the fashion and luxury industries because I believe people will continue to have the desire to express themselves through fashion, and there is a massive market for want-based purchases, not just need-based purchases.

What makes FashionSIGHTS distinct from what's already in the market?

We do for a living what classical consulting firms are not focusing on and are not paid for: We do research, we do thought leadership based on that research and we provide independent advisory over a longer term, not just project based.

What we do not do is classical trend forecasting. The insights engine we're currently building starts, of course, with the mega trends and the discontinuities that have shaped or impacted the fashion industry in the last decades. But we go deeper and try to understand the underlying economic industry and consumer drivers that really shaped it.

Fast fashion, for example, was enabled by sourcing deflation and the appearance and success of MTV and later social media. So, fast fashion is not a trend, fast fashion is an outcome of the different drivers and the business innovation that have happened. Luxury moving out of its niche and growing to today's size—with an incredible value creation for the industry, but also for business—is the result of a growing middle class, a growing hedonism in the Western world, but also the willingness of larger groups of people to, as one of my industry friends calls it, reward themselves for achievements.

We don't try to look at the phenomenon as such. We try to understand what enabled it and what was driving it. Because we believe that’s the only way to predict where things are heading.

How will you use all of this knowledge and information to better understand where things are heading?

We're focusing on four different areas: thought leadership, advisory, investments and community. We want to contribute to the discourse of the industry with our thought leadership, we want to provide the facts and figures. We want to help and shape the discussion and, in that way, support the industry to prepare for the future and to make the best and most informed choices.

We also do targeted advisory for senior decision makers, heads of strategy and chiefs of staff, as well as future decision makers in fashion, to support not only the short term but also the mid- to long-term difficult choices they need to make. That is not classic consulting. It's not the classic strategy project with a team of three for three months. But it is the factual underpinning to discuss strategy and think through the choices at hand. We are sparring partners for top management.

We've also started to engage with promising startups and scale ups at the crossroads of fashion and tech and, on that end, we are excited to build a relationship where we can help over longer periods with our deep understanding of the industry and where it is potentially heading, as well as an industry network we've developed to support those innovations and the positive changes they could bring. We want to be partners that support a part of the journey: from seed to VC, from VC to PE or from PE to exit. In order to do that, we are happy to take equity and invest ourselves with partners.

Lastly, we want to build a community that we can engage with, from followers on LinkedIn to participants in events we’ll host or support, and with our two newsletters that will focus on CEOs and boards on the one side, and heads of strategy and chiefs of staff on the other.

We can provide a unique perspective because, in addition to my team’s exceptional research competence, I have provided more than 20 years worth of advice to some of fashion and luxury’s leading institutions, to entrepreneurs, to boards, and I had the amazing privilege of looking behind the curtain and support clients on strategy questions as well as on big transformations. That will be complemented by the terrific network of friends in the industry and access we have to the board rooms. These views will also appear in a book we have in the works … (more on that below).

Now it would be great to learn a bit more about you—can you describe your greatest inspirations in three words?

People who find their passion and have the energy to shape things are my real inspiration. I’ve seen incredibly inspiring entrepreneurs in this industry who have built amazing businesses. I’ve seen families developing businesses over several generations. I’ve seen courageous CEOs turning businesses around. I’ve also seen that in consulting; some of my great mentors at McKinsey had that great combination of passion and what we call in German, Gestaltungswille, the will to shape and design.

Resilience would be the other word. Typically, it’s not easy to shape things, even if you are passionate, you need to dedicate time and effort and energy, you need to pull out all stops, you don’t accept no as an answer. And if you take all of these three things, that is what I’m really enjoying now in my new role,

At FashionSIGHTS, we are now acting in a very entrepreneurial way, we’re building it up from scratch, we’ve built the infrastructure, we’ve worked on a brand, we started to set up an insights engine and, in that sense, I think the new venture allows me to do all three things: to follow my passion, to shape business and, hopefully, to have a positive impact on the industry. And I’m sure I will need some resilience.

What's something you'd love to do more of?

Even after traveling the world—not quite all the seven seas—I still feel I’ve only seen small parts of the world out there and I’m still incredibly curious to see more. I hope FashionSIGHTS will enable me to get to many interesting places I haven’t been, but I also hope I can privately do more travel with my wife and kids in the years to come. Southeast Asia, Vietnam, Cambodia are on the list, we haven’t been to those places as a family.

What's something you learned recently that you really should have already known?

How much effort it takes to build the infrastucture for even a small company like FashionSIGHTS! But on a more personal note, I didn’t realize how much I learned from my father about carpentry. I recently did some carpentry work with my daughter, and it took me down memory lane. It reminded me of my younger days, helping my father with countless tasks around the house. Back then, I had no idea I was learning—but it turns out just having watched it back in the day was enough to get the job done now. Funny how those lessons stick with you.

I would love to read even more than what I do. While traveling the world as a consultant for 20+ years, I always thought it was the travel and the working hours keeping me back, and it probably was, but I still want to work on prioritizing that more.

The Last Chairlift by John Irving has been sitting on my night desk for a while now and I need to reread The Bling Dynasty: Why the Reign of Chinese Luxury Shoppers Has Only Just Begun by Erwan Rambourg, as I want to recapture the China luxury boom and how it all started.

Let's say it's five years from now: Where is FashionSIGHTS and what have you accomplished?

Five years from now we hope to have built a boutique insights and advisory business that is recognized for a deep understanding of the industry and where it is heading, and that has and is still supporting leading businesses in this industry, from discount to luxury, from Europe to the States to Asia, from manufacturers to retailers to investors.

By then we would also have published the book we are currently working on which has two core elements: One is the hindsight on how fashion and luxury have developed in the 15 years since the financial crisis, including a deep understanding of the drivers and patterns that have evolved from that development, and the second element is an outlook on the themes that will shape the next decade from 2025 to 2035.

In order to do that, we've run a lot of research, but I’ve also started interviewing many of the movers and shakers of the industry, like The New York Times fashion director and critic Vanessa Friedman, Vestiaire Collective CEO Maximilian Bittner, 3d Design CEO Eric Liu and some famously private owners of very successful family businesses. It’s an amazing privilege to spend time with these individuals and to reflect on how we got here, where everything is heading and to translate that into a book.

I think there is enormous interest in the short term but less focus on the mid-term and long-term outlook for the industry and what will impact it. That's why I think looking back 15 years and forward 10 is a very interesting proposition that doesn't exist at the moment. And it’s at the core of what FashionSIGHTS is doing, providing hindsight and foresight.

Industry

Achim shares his vision and inspiration for founding FashionSIGHTS – building on his 24-year career as a top management consultant and a deep passion for shaping the future of the fashion industry.

What's the Future of Fashion?

Interview

foresight

FashionSIGHTS - Unveiled with Achim Berg

Dr. Achim Berg presents a keynote at Svensk Handel's D-Congress in Gothenburg, Sweden. The congress is a leading retail event in Northern Europe, bringing together over 3,000 innovators and decision-makers to shape the industry's future.

e-commerce

people&organization

globalmarkets

Svensk Handel's D-Congress

Achim shares his perspective on the key themes shaping the fashion industry in 2025.

‍After a drop in global sales of personal luxury goods in 2024, the industry is hopeful for modest recovery in 2025. Achim highlights the need to correct overinflated pricing and notes that structural changes, including the offloading of underperforming assets, may be necessary. Ethical and social responsibility will remain critical and growth opportunities will be mostly seen in emerging markets. Major deals in the fashion industry are unlikely in the near term due to stagnant IPO markets. Nevertheless, Achim predicts further consolidation across the industry in the months ahead as well as a shift back to a more personal, individualistic style.

consumer

Getting dressed will be fun again

Summary: The Apparel, Fashion and Luxury industry has seen amazing growth to USD 2.4 trillion, unprecedented levels of value creation and a significant increase in cultural and societal relevance since the beginning of the century. Globalizing markets, the success of American pop culture.

Title Future of Fashion

In an interview with Der Aktionär, Achim provides his perspective on the outlook for the fashion and luxury market in 2025. Next year will remain challenging for luxury brands, marked by ongoing market consolidation. While the luxury categories of fashion, jewelry, and watches face significant headwinds, demand for experiences and travel continues to thrive. Additionally, more space has emerged between the mid-market and luxury segments, allowing premium brandslike Coach to flourish. Fast fashion players such as H&M and Zara are elevating their positioning to differentiate themselves from Asian competitor Shein, while appealing to customers who increasingly prioritize value for money and sustainability. Meanwhile, the booming sportswear segment is undergoing dynamic shifts, with challenger brands (e.g., On, Lululemon, Skechers) steadily gaining market share from the incumbents Nike, Adidas, or Puma.
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Der Aktionär Edition 2025 by Sarina Rosenbusch

Will luxury stocks remain slow sellers?

Is luxury elder care the next frontier? 

Achim discusses on German television how this year’s Christmas business is unfolding for the fashion and luxury industry.
He points out that while city centers may seem less busy, people are still shopping, especially now during the holiday season – but there is a noticeable reluctance to spend. Affordable luxury in particular is struggling as aspirational consumers cut back, while high net worth individuals continue to spend at the top end of the segment. There are fewer tourists from SoutheastAsia as they shift their spending to Japan given favorable exchange rates; although Americans and Middle Eastern customers are increasingly present inEurope. In addition, online and secondhand sales are growing and taking sharefrom brick-and-mortar stores. Achim attributes the industry’s challenges to a stagnant market in Europe, economic uncertainty, and an increasinglycompetitive landscape. This has led to a wave of consolidation, as evidenced by the recent acquisitions such as the Zalando-About You or MyTheresa-Net-a-Porterdeals.



Retail

tagesschau24 Update Wirtschaft by Anne-Catherine Beck

Fashion industry faces cautious consumers during Christmas season

has been one of my favorite weekend rituals for over 20 years. There’s something special about getting up early on a Saturday, when the

branding

How to Spend It...

futureofluxury

diversification

Is luxury elder care the next frontier?

Achim shares his views on the Zalando-About You merger and the ongoing consolidation of online marketplaces in the fashion industry. Zalando announced plans to acquire the fashion retailer About You from the Otto Group for € 1.13billion, thereby strengthening its market position while About You will continue to exist as an independent brand. The acquisition also includes the technology platform Scayle, which will be strategically integrated into Zalandoin the future. Experts see the deal as a necessary step to streamline the market and fend off competition from large Chinese players such as Shein and Temu.



wholesale

WirtschaftsWoche by Lisa Ksienrzyk and Nele Antonia Höfler

What's behind the merger of Zalando and About You

The CELEBRATIZATION of #Fashion and Why the US is a Graveyard for European Brands ...
… was at the heart of my recent conversation with James Fallon Editorial Director of WWD and Chief Content Officer of Fairchild Media Group, in his office on 5th Avenue.
James is a legend in the fashion media industry, with an impressive 45-year career at Fairchild Media. He oversees editorial content across iconic brands like WWD Beauty Inc, Sourcing Journal, Footwear News, and Fairchild Live Media. Having spent 20 years as Fairchild’s London bureau chief before relocating to New York in 2001, James has developed a deep understanding of both the European and U.S. markets, making his perspective on their intersections and contrasts invaluable.

Interview #10 - James Fallon; Chief Content Officer, WWD

Achim talks to WWD about our research on the fashion and luxury industry’s wealth creation.
Fashion and luxury billionaires, led by LVMH’s Bernard Arnault and Inditex’s Amancio Ortega, have solidified their wealth despite global crises and a pandemic, with fashion and luxury ranking as the third-largest wealth-creatingindustry after technology and finance. The analysis highlights the polarizationin the industry, where luxury and value players dominate, while the mid-market struggles. It also showcases a dominance of European-based billionaires that account for 81% of the sector’s net worth. Looking forward, business model innovations, such as Inditex’s agility and Shein’s direct-to-consumer approach,coupled with the growing middle-class worldwide, suggest a resilient and prosperous future for fashion and luxury.


Luxury and Fast Fashions Are Creating Billionaires Galore

Achim provides his perspective on the opportunities and challenges of the growing own-branded jewellery business. There is arising trend of retailers expanding into jewellery, leveraging market knowledge and customer access todevelop high-margin, unique own-branded offerings. The strategy aligns with broader industry shifts as retailers diversify portfolios and introducein-house lines to cater to consumer demand for exclusivity and fill product gaps. While this move can drive growth and strengthen partnerships, expertscaution that market conditions and potential risks of cannibalizing salesrequire careful curation and strategic execution.

Strategy

Retailers open up windows of opportunity in own-brand jewellery

Why Fashion Needs to Move from “Albums to Playlists” ...
… was just one of the many fascinating topics I discussed with Jörgen Andersson , Global Creative Director at H&M during my recent visit to Stockholm.

Jörgen is a true industry veteran who began his career as a business controller at H&M in 1990. Over two decades, he held key roles in product, marketing, and brand development. In 2010, he joined Esprit as Director of Brand and New Business, later becoming Global Co-Chief Marketing Officer at UNIQLO and Fast Retailing in London. For the last decade, he’s been active in Stockholm’s fashion and beauty start-up scene and contributed his expertise to boards like , Filippa K and the H&M Foundation. 

Interview #9 - Jörgen Andersson; Global Creative Director, H&M

Achim Berg holds the opening keynote at the Barcelona Fashion Summit 2025, Spain’s largest fashion business event. Under the theme "Revolution: Breaking Fashion Paradigms", it will gather industry leaders to discuss transformative trends shaping fashion's future.

Barcelona Fashion Summit 2025

Why #Sustainability is the Next Wave of #Disruption in the #Fashion Industry

During my recent visit to Stockholm, I had the pleasure of sitting down with Helena Helmersson for a thought-provoking conversation on the future of sustainability in fashion. Helena’s new role as Chairperson of Circulose, a leading Nordic recycling innovator, made this a natural focal point for our discussion.

Interview #8 - Helena Helmersson; Chairperson Circulose

Achim lends his expertise on luxury strategy to examine the German auto industry's challenges.
In their ambition to establish themselves as luxury brands, German carmakers such as Mercedes, BMW and Audi are encountering obstacles. Despite efforts to appeal to high-end consumers, they are struggling to differentiate from the mass market and establish a true sense of exclusivity.


WirtschaftsWoche by Nele Antonia Höfler 

Why German car manufacturers are failing with their luxury strategy 

Why Luxury Goods Companies Should Take Back Their Products and the Addiction to Consumption

These were just a few of the topics I discussed recently with Vanessa Friedman Fashion Director and Chief Fashion Critic at The New York Times.

Vanessa and I first met 15 years ago when she was the inaugural Fashion Editor at The Financial Times. It was then that we began the partnership between McKinsey & Company and the FT’s Business of Luxury Summit Series. I fondly remember events like the one in Marrakech, where I had the privilege of moderating a panel with Moncler‘s Remo Ruffini.

Interview #1 - Vanessa Friedman; Fashion Director & Chief Fashion Critic, New York Times

Against the backdrop of upcoming EU legislation, we explored how technology, collaboration, and innovation can drive sustainability and digitalisation. From regulatory compliance to scalable innovations, we’ll address the key challenges and opportunities shaping our industry’s future.

Scandinavian Mind Transformation Conference Copenhagen 2024

Achim comments on the challenges of relaunching heritage brands, particularly the high financial and time investment and the corporate structures required. Daniel Roseberry has transformed Schiaparelli into a celebrity favorite with bold designs that spark public debate. Despite limited retail presence and no mass marketing, high-profile clients like Kim Kardashian and Lady Gaga have kept the brand relevant in fashion's attention economy. Now, as Schiaparelli expands into ready-to-wear and accessories, Roseberry faces the challenge of making the brand commercially viable while maintaining its exclusivity, marking thebeginning of a crucial "Act II."


He Transformed the Red Carpet. Now What? 

Achim shares his perspective on why luxury brands are increasingly venturing into the beauty segment.

Bottega Veneta is launching a collection of five unisex luxury fragrances this October. These high-end perfumes are the first project to be launched by the newly formed Kering Beauté, the conglomerate's division dedicated to the booming beauty industry. According to Achim, beauty is an attractive segment for luxury brands as it has proven to be more resilient than fashion.
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With New Fragrances, Bottega Veneta Smells a Hit

At Global Fashion Agenda Summit 2024 in Copenhagen Achim Berg was on Stage to discuss and share insights on scaling circularity in fashion and to discuss why luxury players hesitate to embrace #Rent #Resell and #Repair. 

The theme of the summit, 'Unlocking the Next Level,' perfectly aligns with the need to move from commitment to action after 15 years of awareness creation.



Events

Global Fashion Summit: Copenhagen Edition 2024

How #Apparel #Sourcing Has Changed — and Why #Sustainability Is an #Operational #Imperative

These were the core themes of my recent conversation with Colin Browne CEO of Cascale (formerly the Sustainable Apparel Coalition or SAC).

Colin is a true industry veteran, starting his career as a buying and sourcing manager in Asia in the late ‘80s. I first met him about ten years ago in Hong Kong during his tenure as VP and Managing Director of Asia Sourcing at VF Corporation Corporation , where he was a key architect of supply chain strategy in the apparel industry. 

supplychain

Interview #3 - Colin Browne; CEO, Cascale

#Luxury E-commerce’s Perfect Storm and the Future of #Resale

These were the key themes of my recent conversation with Maximilian Bittner during our meeting in hashtag#NewYorkCity.

Max began his career at McKinsey & Company before founding and leading Lazada Group in Singapore. In 2019, he joined Vestiaire Collective as an investor, CEO, and Chairman, recognizing a massive scalability opportunity in the luxury resale market.


Interview #2 - Max Bittner; CEO, Vestiaire Collective

In an article in WirtschaftsWoche, Achim comments on the challenges that online luxury retailers like MyTheresa are currently facing and how they can overcome them.

MyTheresa has announced plans to acquire rival Yoox Net-a-Porter in a bid to become the leader in online luxury e-tailing. However, the company faces several challenges as demand for luxury goods has weakened due to uncertain consumer sentiment and rising prices of luxury goods. In addition, luxury brands are increasingly turning to direct sales and moving away from multi-brandplatforms. Growth alone is no longer sufficient for luxury online players; instead investors are now demanding profitability. MyTheresa plans to overcome these hurdles through synergies, a curated offering and the integration of YNAP's platform and customer data.



Luxury online retail – Mytheresa is now facing these challenges

Is the Fashion Industry Having Its #TESLA Moment?

That was at the heart of my conversation with Eric LIU, founder and CEO of Style3D.

Eric is a true pioneer, driving the digital transformation of fashion’s back-end processes. With over 20 years of experience, he founded Style3D in 2015, blending his expertise in computer science with hands-on experience in apparel manufacturing. 

technology

Interview #17 - Eric Liu; Founder & CEO Style3D

In an interview with Pilar Riaño from Modaes, Achim delves into the future of the fashion industry.

He explains how SHEIN is disrupting fashion, similar to Inditex in the past, shaking up established business models. He also highlights the urgent need for regulators to step up, enforce sustainability standards and create a framework that holds fast fashion players accountable. He goes on to emphasize the importance of technological advances to make circularity a viable reality for the industry. Further, Achim addresses the growing polarization within the sector, where size increasingly matters and small brands are struggling to compete. Amidst this, he asserts that novelty and creativity remain crucial, ensuring cultural relevance and connecting brands with evolving consumer desires.
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“Size is not in itself a guarantee for success”

Achim pays tribute to Giorgio Armani in the afterword of the book "Giorgio Armani - L'uomo, ilmarchio, l'azienda" by Frank Pagano and Marco Di Dio Roccazzella, published by Il Sole 24 Ore in October 2024.

Achim honors Armani’s keen ability to consistently deliver distinctiveness and timelessness—kept at the core of everything he did—over five decades in business. Armani parlayed his signature aesthetic and his distinctive vision for lifestyle into a thriving brand, growing it into a multi-billion, multi-gender, multi-category global fashion group. All while maintaining the company's independence and full ownership in an industry that is characterized by intense consolidation.



Book by Frank Pagano and Marco DiDio Roccazzella

Giorgio Armani- L’uomo, il marchio, l’azienda 

The FashionSIGHTS team is thrilled to share our first #inSIGHTS #report, titled "Behind the Fortunes – How Fashion and Luxury are Creating Billionaires Galore." 


The Two-Horse Race: How Fashion’s Richest Are Shaping the Industry Through Business Model Innovation

Achim discusses his perspective on the future of luxury e-commerce with Glossy's Jill Manoff.

Luxury brands are increasingly by passing multi-brand e-tailers, offering direct-to-consumer sales with full product ranges, exclusive perks, and enhanced omnichannel experiences. Many once highly valued e-commerce platform shave struggled to achieve profitable growth in a high-interest rate environment, while others, such as Mytheresa, have thrived by focusing their differentiation strategy on curation rather than low prices, and by building customer loyalty through exclusive services and events. Although luxurye-commerce is projected to grow by 20 to 30 percent, physical retail will remain essential for luxury brands.



What's next for luxury e-commerce

Where is German fashion heading?

That was the central theme of my recent conversation with Michael Werner, Editor-at-Large at TextilWirtschaft in our Wiesbaden offices.
With over 30 years of experience in the industry, Michael has been a keen observer of the German fashion market. He spent more than a decade leading the editorial team at TextilWirtschaft the leading trade publication for the DACH fashion market, and continues to shape the industry dialogue in his current role as Editor-at-Large. Few have analyzed and narrated the sector’s evolution as extensively as he has.

Interview #19 - Michael Werner; Editor-in-Large, Textilwirtschaft

Achim talks with Jennifer Wiebking from the FAZ about the luxury goods boom, the COVID effect, and why the industry is now suffering a post pandemic hangover.

Luxury fashion prices have risen dramatically, with Chanel's iconic 11.12 bag increasing by 470% since 2007, reflecting broader hyperinflation across the industry. As a result of the massive price increases, more accessible luxury brands such as Longchamp and new entrants such as Polène are gaining popularity, offering high quality products at relatively lower prices amidst rising consumer price sensitivity.


LuxuryProblems

The US administration has announced a series of 31 regulatory rollbacks, including the repeal of emissions limits on power plants, a reconsideration of the mandatory greenhouse gas reporting program, and an overhaul of the “social cost of carbon.” These moves follow US foreign aid cuts in January and the country’s withdrawal from the Paris Climate Agreement.

These regulatory changes will have significant implications for fashion. But what does this mean for ESG (Environmental, Social, and Governance) in fashion? Will US fashion players reverse their sustainability efforts, much like some retailers have scaled back on DEI initiatives?

What means the US deregulation push for ESG in fashion?

What does it take to become a CEO of a fashion company?

This was the focus of my recent conversation with Claus P. Fischer, the Global Practice Lead for Retail, Luxury & Apparel at Russell Reynolds Associates.

diversity&inclusion 

Interview #20 - Claus Fischer, Global Leader Retail, Luxury & Apparel Practice, Russell Reynolds

In a discussion with Modaes journalists, Achim shares his perspective on the impact of interest rates on the fashion industry.

The FED’s recent interest rate cut, the first in over four years, has sparked mixed reactions in the fashion industry. Some experts believe it could stimulate consumer spending, especially during the holiday season, while others think its effects may take time to materialize, and the upcoming U.S. elections could heavily influence its impact. The rate cut is expected to weaken the dollar, potentially reducing costs for European fashion companies sourcing materials from abroad but making exports to the U.S. more expensive.


macroeconomics

From hawk to dove: the Fed's rate cut and its impact on fashion from a bird's eyeview

Two months ago, I had the privilege of giving the opening keynote at the Modaes Barcelona Fashion Summit. Here is what I shared:

The #futureoffashion is bold - my predictions are too.
 
1️⃣ #Growth will only occur in pockets
2️⃣ #Polarization will intensify
3️⃣ #FastFashion will face challenges and decrease in relevance
4️⃣ #Mid-market squeeze will move up to premium
5️⃣ #Luxury will pause before the next boom
6️⃣ #AI will be the game-changer for back-end efficiencies
7️⃣ #Nearshoring will finally gain traction
8️⃣ #ESG will become non-negotiable
9️⃣ #Online&offline channels will merge seamlessly
🔟 #Competition for talent will intensify
 

Barcelona Fashion Summit 2025 

A fireside chat with Achim and Konrad Olsson at the Scandinavian MIND Transformation conference in Copenhagen.

Achim Berg reflects on the current state of the fashion industry, including the post-COVID boom and the industry's hard landing in the face of multiple global crises, a challenging macro economic environment, and weakening consumer demand. He also reflects on his personal career, the lessons learned at McKinsey, and provides insight into the plans for his new company.


Scandinavian MIND Transformation conference Copenhagen 2024

In his Op-Ed, Achim comments on the current state and progress of sustainability in the fashion industry and what regulation can do for it (or not).

Fashion's sustainability efforts have grown in importance, yet significant challenges remain as consumption, emissions, and pollution continue to rise. While many hope that regulation will drive change by forcing brands to deliver on climate commitments, there is concern that relying on slow-moving policies will further delay progress. Industry leaders, especially its “super winners,” must take responsibility and accelerate their sustainability initiatives, or risk being overtaken by more innovative competitors.


manufacturing

Op-Ed: Fashion Can’t Wait on Regulation to Act on Sustainability

Achim speaks about circular business models, emphasizing the need to make these models more profitable in order to achieve sustainable growth.

The second day of the Global Fashion Summit in Copenhagen focused on sustainability, circular business models, and overproduction, with critiques of the fashion industry's current practices, including Shein's business model. Speakers emphasized the need for transformative change in the industry, highlighting circularity, creativity, and new regulations, while acknowledging challenges like reduced margins and increased complexity. The French government’s anti-Shein law, aimed at fast fashion regulation, and the call for companies to adapt to new market trends, were key topics discussed.


Lemonade is made with lemons and how Shein snuck into the Sustainability Summit

Advisory

Mango appoints renowned fashion industry expert Dr. Achim Berg as external advisor to the CEO

Achim shares his perspective on Inditex’s expansion strategy in Leipzig, Germany.

Inditex is expanding its brand portfolio in Leipzig with new stores for Zara, Pull & Bear, Bershka, and Stradivarius. Achim points out that this move reflects broader industry shifts, particularly in the mid-market segment, where competition has weakened due to bankruptcies. Coupled with lower retail rents, Inditex is seizing the opportunity for growth. Achim further explains that Inditex’s vertically integrated business model is a key driver of this success, allowing the company to control the entire value chain and operate with greater resilience.

Spanish fashion conglomerate conquers Leipzig

WWD provides exclusive coverage of Achim’s vision for FashionSIGHTS, a day before its official business launch.

In an exclusive press release, Achim is quoted on his idea behind founding FashionSIGHTS to provide in-depth insights and advise fashion and luxury decision-makers in an increasingly complex landscape. The article highlights FashionSIGHTS' unique proprietary insights engine and the four core pillars upon which the think tank is built. Achim's ongoing influence in shaping fashion's future is underscored by his recent co-edited report with WWD which analyzes the wealth creation of fashion and luxury billionaires on the Forbes 200 list over the past 24 years.

Achim Berg Launches FashionSights, an Independent Think Tank

Achim discusses the broader challenges of struggling luxury houses and success factors that set certain brands apart from its competitors.

The luxury sector is facing challenges as consumer demand weakens and growth driven by price increases reached its limits. Achim highlights two successful categories: zeitgeist brands that thrive on trends, and exclusive high-end brands like Hermes, benefiting from wealthy buyers whose spending remains stable during economic downturns. In contrast, luxury brands focusing on volume rather than exclusivity, such as Gucci and LVMH, are more vulnerable to economic fluctuations. Achim emphasizes that profitability and an adapted pricing strategy will be key to sustaining growth in the future.

Major luxury groups show weaknesses - with exceptions

Modaes reports on Achim’s newly launched corporate think tank FashionSights.

The leading Spanish industry publication describes FashionSIGHTS as the start of a new chapter that allows Achim to follow his passion for the fashion industry by providing strategic guidance to decision-makers, supported by in-depth research on the industry’s past, present and future. This approach sets FashionSIGHTS apart from traditional consulting firms, offering long-term advice rather than just project-based advisory. Modaes also highlights Achim’s continued impact on the Spanish market, including his keynote to open the Modaes Fashion Business Summit earlier this month and his advisory mandate for Mango.

Achim Berg Launches an independent Think Tank dedicated to the Fashion and Luxury Industry

Achim comments on fashion’s ongoing musical chairs and highlights the financial impact of transition periods.

During interim periods without a creative director, brands often rely on classic bestsellers, but this approach doesn’t always prevent revenue declines. In a fragile macroeconomic environment with declining consumer demand, frequent creative director changes signal deeper sales problems rather than strategic moves in a frantic bid for success. While these changes typically impact the top line, Achim urges not to underestimate the “time lapse” effect, noting that new creative directors typically need at least two collections to make a meaningful impact, delaying potential revenue recovery.

What Happens to a Multibillion-Dollar Luxury Brand When the Boss Leaves

Achim is featured as a top voice with his keynote speech on fashion's paradigm shifts and the evolving e-commerce landscape.

Held in Sweden, home to innovative e-commerce companies, D-Congress brought together prominent industry thought leaders to explore the transformative power of AI in global fashion, culture and retail. In his keynote, Achim discussed fashion’s e-commerce transformation, highlighting how the landscape is consolidating and evolving around three core value-driven archetypes. He also identified ten key paradigm shifts that are revolutionizing the fashion industry, from AI streamlining back-end operations to ESG initiatives becoming non-negotiable for brands.

D-Congress 2025: How AI Is Powering Fashion, Culture And E-Commerce

Achim talks about his perspective on the role of AI and advanced technology in changing the dynamics of fashion’s future.

With fashion at an inflection point, AI and innovation are redefining how brands operate and compete. In a conversation, Achim explores how AI is transforming fashion beyond the hype, why the industry has become the third largest wealth generator after tech and finance, and the unique challenges facing premium Nordic brands in an increasingly competitive market. Achim also highlights the evolving role of sustainability, balancing priority and profitability in today's changing landscape.

Scandinavian MIND podcast by Konrad Olsson

Navigating wealth and technology in fashion (with Achim Berg)

Achim shares his opinion on the opportunities and challenges of resale in fashion and luxury.

Resale has become a major force in luxury, with watches leading the way due to limited supply, durability, and high value retention. Their scarcity fuels demand and strengthens strong resale prices. Fashion faces greater challenges in resale, as items like cashmere and shoes degrade over time, and the industry often overproduces rather than limiting supply, reducing long-term value. As Achim notes, this makes resale more complex, requiring a careful approach. Many brands still underestimate consumer demand or struggle to integrate resale into their business. A key lesson from watches is the importance of authentication and collaboration with trusted resale platforms to protect brand equity and unlock new opportunities in the secondary market.

resale

What luxury can learn from the watch resale playbook

Achim's keynote on fashion's paradigm shifts, presented live at D-Congress, is now available as a podcast episode.

After a decade of massive growth, peaking during Covid, e-commerce now faces a reality check. Achim dives into the drivers behind the past decade's e-commerce boom and gloom and explains why the focus has now shifted from aggressive growth to profitability. This shift is leading to a market restructuring and consolidation, with a future focus on three key archetypes that define the landscape.

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What luxury can learn from the watch resale playbook

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