First Time Founders: This Former Trader Built A Luxury Clothing Brand - The Prof G Pod with Scott Galloway Recap

Podcast: The Prof G Pod with Scott Galloway

Published: 2026-01-04

Duration: 1 hr 1 min

Guests: Michael Berkowitz

Summary

Michael Berkowitz, a former Wall Street trader, founded Norwegian Wool after spotting a gap in the market for stylish yet warm luxury coats. The brand has achieved success without traditional marketing, relying on organic growth and the quiet luxury trend.

What Happened

Michael Berkowitz transitioned from Wall Street trading to founding Norwegian Wool, a high-end coat brand known for its blend of luxury and functionality. He was driven by the lack of stylish yet warm coats suitable for both business and leisure, a need he felt keenly in his previous finance role. His initial designs were tested in specialty shops along the Northeast Corridor, which led to significant orders and his eventual departure from finance.

Norwegian Wool's coats have become a staple at Davos and are available at prestigious retailers like Saks and Bloomingdales. The brand's rise is partly attributed to its alignment with the quiet luxury trend, which favors understated elegance over flashy logos. This trend has been popularized by features in shows like 'Succession' and endorsements from figures such as Patrick Dempsey.

Manufacturing in Italy, known for its exclusive industry, posed challenges for Berkowitz, but it allowed Norwegian Wool to maintain high quality. The brand's head designer, with experience at Loro Piana, brought expertise in Scandinavian outdoor living, enhancing the coats' performance and luxury appeal.

Norwegian Wool avoids traditional influencer marketing, instead relying on word-of-mouth and organic promotion. The brand gained unexpected visibility through Liquidity, a Wall Street meme account that spotlighted its products. This approach aligns with the luxury sector's move towards authentic storytelling over mass-market advertising.

The company's pricing strategy focuses on maintaining price integrity, avoiding artificial markups and false discounts. This approach ensures that when consumers purchase a Norwegian Wool coat, they're investing in quality rather than just a brand name.

Customer service is a cornerstone of Norwegian Wool's business model. A notable incident involved a customer service oversight with a Christmas gift, which the company rectified by offering a second coat for free, highlighting their commitment to customer satisfaction and brand reputation.

Key Insights

• Norwegian Wool's coats are a staple at the World Economic Forum in Davos and are sold at high-end retailers like Saks and Bloomingdales, aligning with the quiet luxury trend popularized by shows like 'Succession'.
• The brand's manufacturing in Italy, despite its challenges, ensures high-quality production, with the head designer bringing expertise from Loro Piana and Scandinavian outdoor living to enhance luxury and performance.
• Norwegian Wool's marketing strategy avoids traditional influencer marketing, instead gaining visibility through organic promotion and unexpected endorsements like the Wall Street meme account Liquidity.
• The company's pricing strategy focuses on maintaining price integrity, avoiding artificial markups and false discounts, ensuring consumers invest in quality rather than just a brand name.