With New Fragrances, Bottega Veneta Smells a Hit

in Wall Street Journal
by Rory Satran
October 2024

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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‍“Everybody now in fashion is looking into beauty. It was a growth category in the past, and it is perceived as a very resilient category.” (Achim Berg)
 
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Luxury online retail – Mytheresa is now facing these challenges

in WirtschaftsWoche
by NeleAntonia Höfler
October 2024

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 overcomethese hurdles through synergies, a curated offering and the integration of YNAP's platform and customer data. 

‍“For along time, online luxury retail was all about growth and market share. Profitability was secondary. In the meantime, however, interest rates have risen. There is no longer any cheap money to finance growth. Investors are now demanding profitability instead.” (Achim Berg)
 
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“Size is not in itself a guarantee for success”

at Modaes.com
by Pilar Riaño
October 2024

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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“The positive side of the story is that there are many opportunities. Itremains a sector with great margins. If a brand manages to hit the right note,if it has an amazing collection, if it runs an incredible campaign, it cangenerate business and excitement. And that’s what has always fascinated meabout the fashion industry.” (Achim Berg)
 
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Giorgio Armani- L’uomo, il marchio, l’azienda

Book by Frank Pagano and Marco DiDio Roccazzella
with contributions of Achim Berg, Federica Marchionni, Nicoletta Polla - Mattiot, Giuseppe Stigliano
October 2024

Achim pays tribute to Giorgio Armani in 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. 

"His clear point of view and radical consistency in building his empire have not only solidified Mr. Armani as critical to the can on of fashion but also a vital case study in business building. His is a legacy set to inspire generations of design creatives and entrepreneurs to come.” (Achim Berg)
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GLOSSY

What's next for luxury e-commerce
at glossy.com
by Jill Manoff
October 2024

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. 

‍“We’ll see a bigger share of D2C sales, more brands moving to D2C [sales] only, and other brands offering just an appetizer [of products] on platforms, forcing customers to go to the brand website for the full experience. Everything that is too price-driven will lose out, and we will have a much more limited, differentiated multi-brand luxury landscape.” (Achim Berg)
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FAZ Magazin

LuxuryProblems
in FAZ Magazin
by Jennifer Wiebking
September, 2024

Achim Berg 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.

“With the inability to spend money elsewhere (during the Covid pandemic) and reward one self hedonistically, people bought luxury accessories. (…) Companies took advantage of this general demand and pushed through price increases.” (Achim Berg)
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Modaes

Lemonade is made with lemons and how Shein snuck into the Sustainability Summit
at Modeas.com
by Pilar Riaño
May 2024

Achim Berg 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’santi-Shein law, aimed at fast fashion regulation, and the call for companies to adapt to new market trends, were key topics discussed. 

‍“Brandswill be forced to make circularity profitable. (…) Of course, there will be acertain cannibalization (of the circular model over the traditional one), but we will have to get used to it. The margins will decrease, this is a very unpopular topic, but the current growth and margins are not sustainable.” (Achim Berg)
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Modaes

Fromhawk to dove: the Fed's rate cut and its impact on fashion from a bird's eyeview
at Modaes.com
by Pilar Riaño
September 2024

In a discussion with Modaes journalists, Achim Berg 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.

‍"It's something too abstract and far away for people, but it's definitely a requirement for an improvement in consumption. (…) Everything is at the expense of what happens in the American elections (this will be) a game changer." (Achim Berg)
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Scandinavian MIND conference
at scandinavianmind.com
August 2024

A firesidechat with Achim Berg 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. 

‍“(The state of fashion) is tough. Even the luxury industry has had a landing, some of the successful players have a softer landing than others, but what has fundamentally changed is that consumers are not willing to spend anymore, which is different from the pandemic where they weren't able to spend. Consumers are not as excited as they used to be. (...) It's sobering and it's not clear when this will change.”(Achim Berg)
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Mango appoints renowned fashion industry expert Dr. Achim Berg as external advisor to the CEO
www.mangofashiongroup.com, February 2024
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