From Trader to Fashion Entrepreneur: The Birth of Norwegian Wool
In August 2014, Michael Berkowitz received the first prototype of what would become Norwegian Wool’s signature jacket. At 95 degrees outside, Berkowitz tested the knee-length waterproof wool coat in a supermarket freezer in West Harlem to evaluate its warmth. The experience convinced him of the product’s potential: stylish yet functional outerwear designed for harsh winter climates. Berkowitz, then a 38-year-old commodities trader, had long envisioned creating a coat that combined elegance with true cold-weather protection. His vision was sparked by a cold New York subway platform conversation in 2013 when he realized traditional Italian wool coats were insufficient for colder U.S. cities.
Identifying a Market Gap: Style Meets Function in Cold Weather
Berkowitz’s research revealed a disconnect between fashion and functionality. Most luxury coats originated in warmer Italian regions where winters rarely dropped below 40 degrees Fahrenheit, leaving coats ill-equipped for colder cities like New York or Chicago. Meanwhile, manufacturers in Canada and Scandinavia focused on warmth but lacked fashion-forward design. Norwegian Wool’s coats bridge this divide, offering classic European styling with insulation suitable for sub-40-degree weather. Berkowitz explains, “If you show up wearing a puffer coat that looks like you’re going to the Arctic, but it’s only 40 degrees, you do not look like the person that’s going to be able to break through walls and get a deal done.”
Investment and Early Growth: From Bronx Apartment to Luxury Retail
Berkowitz invested $50,000 of his own money and secured $200,000 from a former CFO to develop prototypes and produce an initial run of 200 coats. He personally distributed these early products to luxury family-owned stores across the U.S., often pitching directly to sales associates to understand client needs. The coats sold out within three months, prompting Berkowitz to resign from his trading job in early 2015 and focus full-time on Norwegian Wool. The company has since grown to sell in over 100 stores worldwide, including Saks Fifth Avenue, Bloomingdales, and Nordstrom, alongside its exclusive New York showroom.
Positioning Norwegian Wool in the Luxury Outerwear Market
Priced between $1,545 and $2,945 depending on fabric, Norwegian Wool coats offer a premium alternative to Canada Goose and traditional Italian brands like Loro Piana. The brand’s commitment to quality is praised by industry insiders, with HBO’s “Succession” costume director describing the cashmere as feeling like “dipping your hand into warm butter.” The brand has attracted an elite clientele, with Berkowitz estimating around 40 billionaires among its customers. Norwegian Wool coats have appeared at high-profile events such as the World Economic Forum in Davos and on television, enhancing the company’s prestige.
A Founder-Driven Approach to Product Development
Berkowitz remains deeply involved in product testing, personally trying prototypes during trips and daily commutes to ensure the coats meet customer expectations. This hands-on approach reflects his commitment to blending style with practical performance. Looking ahead, Berkowitz aims to expand Norwegian Wool’s product range and increase brand visibility through marketing initiatives and pop-up retail events, aspiring to establish the brand as synonymous with refined, functional luxury akin to the Range Rover in the automotive world.
FinOracleAI — Market View
Norwegian Wool exemplifies a successful niche luxury brand that addresses a specific market gap—combining aesthetic appeal with functional warmth for cold climates. Founder-led innovation and strategic retail partnerships have propelled the brand into a competitive segment dominated by established players.
- Opportunities: Expansion into new product lines and geographic markets; increased brand awareness through targeted marketing and pop-up events; leveraging celebrity and high-profile endorsements to enhance prestige.
- Risks: Competitive pressure from established luxury and technical outerwear brands; dependency on founder’s vision and involvement; potential supply chain challenges with overseas manufacturing.
Impact: Norwegian Wool’s growth reflects strong demand for luxury outerwear that does not compromise on functionality, positioning the company favorably for continued expansion in the premium apparel market.
