FashionSIGHTS is an independent corporate think tank that aims to redefine thought leadership and advisory by transforming data, experience, and expertise into actionable insights. Achim is already an established thought leader in the industry. He worked for 24 years at McKinsey & Company, where he was instrumental in founding and leading the global Apparel, Fashion, and Luxury practice.
In this conversation, we talk about:
- His observations for attending D-Congress in Gothenburg
- Why AI is a significant game changer for the fashion industry
- How Fashion became the third largest wealth-generating industry after technology and finance
- How to navigate technology and compliance
- His advice to brands in the Nordic market
Hosted by Konrad Olsson, Editor-in-chief and founder of Scandinavian MIND.
Key takeaways
Fashion and luxury have become major wealth generators
Fashion and luxury have emerged as the third-largest wealth-creating industry after technology and finance. As Achim explains, “Fashion and luxury come as the third biggest wealth-creating industry after technology and finance. That was kind of stunning because that is not the general reputation of the industry.” Despite challenges, these sectors continue to produce substantial fortunes, particularly for major players like LVMH and Inditex.
AI is transforming the fashion industry
AI is poised to revolutionize the way fashion operates, enhancing productivity, efficiency, and profitability. Achim notes, “AI seems to be a real game changer for that. Very different to Metaverse, which was one of those fancy topics at the end of COVID.” The application of AI is helping brands achieve greater operational efficiency, especially as sourcing costs and sustainability pressures increase.
The polarization of fashion: luxury vs. fast fashion
The fashion industry is increasingly polarized, with luxury and fast fashion giants like LVMH and Inditex leading the charge. Achim highlights, “Like it or not, Shein is a true innovation… connecting manufacturers directly with consumers, which is based on technology.” Fast fashion’s agility and luxury’s brand value creation continue to fuel massive wealth generation, and this dynamic shapes the industry’s future.
Sustainability is shifting from priority to profitability
As the economic landscape tightens, the focus of fashion companies is shifting from ESG initiatives to driving profitability. Achim reflects, “The unfortunate truth is the consumer says they care about it, but their action is pretty inconsistent with that.” With increasing costs and uncertain regulations, brands must find ways to drive efficiency while balancing sustainability goals.
Nordic premium brands face growing pressure to scale or consolidate
The premium fashion segment in the Nordics is under increasing pressure, caught between rising sourcing costs, sustainability demands, and growing international competition. Achim warns, “There is a large number of brands that are somewhere between 20 and 200 million euros in sales… that struggle to break out of that and sell internationally despite all the e-commerce opportunities.” To survive, these brands must either expand into key markets like Germany and the UK, consolidate with competitors, or develop stronger direct-to-consumer strategies.
2025 will be a year of transition for fashion
The fashion industry will not experience a major recovery in 2025, according to Achim. “We’re not going to see the big recovery that a lot of people were hoping for, the same way we haven’t seen it in 2024.” The year will likely be marked by volatility and structural shifts, including challenges in luxury and mid-market segments, setting the stage for further industry consolidation.
