The Prof G Pod with Scott Galloway | First Time Founders

Episode: "This Former Trader Built A Luxury Clothing Brand"

Date: January 4, 2026

Host: Ed Elson — First Time Founders, Prof G Media
Guest: Michael Berkowitz — Founder & CEO, Norwegian Wool

Episode Overview

This episode of First Time Founders features an in-depth conversation between Ed Elson and Michael Berkowitz, the former Wall Street commodities trader who founded Norwegian Wool—a luxury outerwear brand gaining cult status among business professionals, especially those in finance. The discussion explores Berkowitz's journey from trading floors to fashion entrepreneurship, how he identified and solved a niche problem, broke into the luxury market, and built a brand at the heart of the "quiet luxury" movement.

1. The Genesis of Norwegian Wool

[02:06–05:35]

• Origin Story:

  • Michael was a young trader on Wall Street, acutely aware of the importance of image ("A lot of who you are...your clothing you are in control of." – Michael, [02:47]).
  • He could not find coats that balanced style and warmth—nice coats were cold, warm coats looked awful.
  • Realized this problem was widely shared with his peers. A friend's mother-in-law, a fashion designer, confirmed the market gap by saying, "when you find one, get one for me too." ([04:21])

• Market Gap Identification:

  • There was no luxury brand offering business-appropriate, truly warm outerwear.
  • Inspiration from brands in other segments (Lululemon for activewear, Vilebrequin for swimwear) led to the idea of a luxury outerwear brand specifically for business professionals.
  • Recognized untapped opportunity: "Who's the guy who's taking care of business professionals who need, like, nice looking, good quality outerwear?" – Michael, [04:21]

2. Transition from Wall Street to Entrepreneurship

[06:33–07:41]

• Cautious Start:
  • Michael did not quit his trading job immediately.
  • Developed samples in spare time, became a traveling salesperson showing them to Northeast specialty shops.
  • Stores instantly understood the problem and were receptive, confirming product-market fit.

“They all right away nodded their head when I said the problem. … We sold really well. When they started to place orders for the next fall, winter, that’s when I quit my job and lined up some investment.” – Michael, [07:41]

3. Breaking into the Luxury Supply Chain

[07:57–12:19]

• Manufacturing Barriers:

  • Faced challenges as an outsider: best factories in Italy were hard to access, wary of newcomers.
  • Strategy: Build trust by demonstrating seriousness, paying on time, and nurturing relationships (including old-school Italian dinners talking about family).
  • Importance of using only the best materials and being patient with brand development.

• Luxury Market Dynamics:

  • Legacy brands (e.g., Hermès, Louis Vuitton) dominate luxury, making entry hard.
  • Berkowitz saw his outsider status as an advantage—he alone truly understood business professionals’ needs.
  • Serendipitous partnership with a designer who was half-Norwegian, half-Italian, and embodied the culture and technical know-how the brand required.

4. Lessons in Craft and Quality

[12:50–13:52]

• There are no shortcuts in luxury—never cut corners on quality, even on a tight budget.
• Overdelivering on quality creates wow-factor, earns trust of both retailers and customers.
• “Show everyone … that your quality is just amazing. So that anyone who touches what you’re doing, they’re wowed by it.” – Michael, [12:56]

5. Brand Narrative & Product Positioning

[14:06–18:05]

• Solution selling: Always lead with the problem being solved; utility first.

• Example of impactful pitching: At a trade show, demonstrating the hidden warmth/assets of the coat to a skeptical room earned a standing ovation.

  “I flashed them open and showed them. The whole thing was lined with down. And I said, by the way, this is cashmere on the outside, fully downlined and waterproof. I got a standing ovation from everyone in the room…” – Michael, [14:26]

• Aspiration and emotion:

  • Luxury is about more than function—it's about making the wearer feel confident and special.
  • Association with influential circles (Davos, Wall Street, Succession) has compounded the brand’s status.

6. Word of Mouth, Influencers, and "Organic Luxury"

[18:50–22:52]

• Most powerful marketing: customer referrals, influential word of mouth.
• Anecdote: A single meme influencer (Liquidity) generated a six-figure surge in web traffic after an authentic shout-out.
• Organic celebrity moments (e.g., Patrick Dempsey pausing production for a Norwegian Wool coat) have reinforced the authenticity.

7. The Power of Microcultures

[24:20–27:28]

• The brand’s initial traction came from deeply understanding and embedding in finance/business subcultures.

• Michael highlights the failure of legacy brands to adapt, focusing instead on the needs and aspirations of modern professionals:

  “Performance is luxury.” – Michael, [26:35]

• Finds the greatest resonance among professionals who want to combine functionality and understated elegance.

8. Quiet Luxury & Brand Identity

[30:39–36:45]

• "Quiet luxury" is not new; it’s an ethos for those confident in themselves—products with little to no visible branding.
• Rejects logo-chasing as a substitute for self-confidence:

  "If you're spending 1500, 2000 just for the logo, you'd be better off spending that money on therapy." – Michael, [32:44]

• Sees a shift in consumers: people want fewer, more meaningful, and story-rich purchases.

9. Social Media & Storytelling

[37:06–41:02]

• Norwegian Wool’s social media strategy is authentic: showing “what we’re already doing,” including behind-the-scenes and production processes.
• Details like fabric ‘resting’ for a month, or the design process happening in a Tuscan castle, add layers to the story.
• Leverages platforms like LinkedIn and Instagram, but always with content that reflects authenticity and quality, not gimmicks.

10. Advertising, Pricing, and Growth Strategy

[42:14–48:09]

• Advertising Placement: Michael is willing to break with luxury tradition if that’s where customers are, but insists the ad must feel luxurious.

• Pricing Strategy:

  • Balances cost-up and market-down approaches.
  • Rejects constant sales, prioritizes "price integrity."

  "People are happy to spend, but they just don't want it to be that the guy next to them spends half the price.” – Michael, [44:59]

• Inventory discipline: Prevents overproduction and discounting, which preserves both margins and brand value.

11. Scaling & The Future

[50:20–53:15]

• Women’s line is now the fastest-growing segment.
• New products always need a genuine performance twist (e.g., work trousers that feel like joggers but look business-ready).
• Expansion is both geographic (new presence in Paris, Vienna) and via specialized collaborations focused on genuine skill-sharing, not superficial celebrity tie-ins.

12. Customer Service as a Differentiator

[55:09–59:35]

• Michael’s #1 advice for founders: Obsess over customer service, especially in high-ticket e-commerce.
• Example: When a Christmas surprise gift was accidentally shipped too early, Michael’s team sent a second, different coat free of charge to restore delight.

  “We did mess up. We owned it. ...Now we gotta match that in the other direction and just try to make it right. I think that's what people want. A real relationship.” – Michael, [59:16]

Notable Quotes & Memorable Moments

• On luxury’s changing nature:
  “The softest luxury cashmere vicuna with stretch and waterproof is not a contradiction. It belongs together.” – Michael, [26:35]

• On the importance of quality:
  “Even if you don't have the legacy brand name yet, ...when people see that you're actually bringing them something special...that will open up so many doors.” – Michael, [12:56]

• On 'quiet luxury' versus loud branding:
  “If you're just wearing it to show off, it means you don't have confidence in who you are.” – Michael, [32:44]

• On authentic marketing:
  “If there's actually a connection, if someone's really wearing it when they're not paid to ...that gets out.” – Michael, [22:10]

• On service as differentiator:
  “Go all out on good customer service and value that very, very greatly in terms of your business plan.” – Michael, [57:09]

Important Timestamps

• [02:06] — Story of the Wall Street origin and coat dilemma
• [04:21] — Recognizing the industry gap via personal networks
• [07:41] — Early proof of concept with boutique orders
• [12:56] — Rule for any luxury founder: never sacrifice quality
• [14:26] — Pivotal trade show moment (standing ovation pitch)
• [18:50] — Brand legitimization by Wall Street, Davos, and Succession
• [20:46] — Viral effect: Liquidity’s endorsement
• [26:35] — Redefining what “luxury” means
• [32:44] — Therapy, not logos: the “quiet luxury” philosophy
• [44:59] — Reason behind maintaining price integrity
• [55:09] — The primacy of high-touch customer service
• [59:16] — Going above and beyond to correct a mistake

Conclusion

This episode is a masterclass in niche luxury brand-building from an authentic, problem-solving founder. Michael Berkowitz’s story demonstrates how deeply understanding your customer (because you are that customer), never compromising on product, and embracing genuine storytelling can disrupt even the most legacy-focused industries. His insights offer practical lessons in everything from managing supply chains, to harnessing microcultures, to maintaining the emotional heartbeat of a brand—customer service.

For anyone considering starting a product company, especially in luxury, this episode is a must-listen exemplar of strategic, grounded, and modern brand-building.