Timo Karanko, Global Apparel Leader, and Anna K. Johansson, Change Management Director at TAM Retail Sweden, come together in a fireside chat to explore the next decade of global fashion, with a focus on growth, reinvention, and consumer value creation.
Anna K Johansson: You have driven growth by simplifying your product and accelerating speed, rather than expanding the range. In a scale-driven market like India, how do you decide what not to pursue?
Timo Karanko: In this business, it is tempting to believe that doing more, offering more, and adding more products will automatically lead to higher sales. However, based on experience and learning, I strongly believe that ‘less is more.’ Growth does not come from constant expansion of choices, but from doing fewer things better and making faster, more focused decisions.
A well-known example is the ‘Jam Study’ conducted in the early 2000s in the US. Supermarkets offering 24 varieties of jam were compared with those offering only six. Surprisingly, the stores with fewer options achieved higher sales. This reflects the ‘paradox of choice,’ where too many options make it harder for consumers to decide, often leading to inaction. The same principle applies to apparel retail. Success comes from consolidation and clarity. Brands should focus on styles that align with their core identity, generate higher volumes, and meet margin expectations. While a few distinctive or trend-led pieces are important, everything else that does not add real value should be eliminated. By simplifying assortments and sharpening focus, brands can strengthen consumer engagement, improve efficiency, and build sustainable growth.
AJ: How do you see the retail consumer fundamentally changing especially in terms of not just what they buy, but why they buy?
TK: In today’s rapidly changing world, consumer behavior is evolving just as quickly. At its core, retail is about people, and it is essential to recognise the human behind every purchase. Consumers today are more demanding, less loyal, and faced with endless choices. To succeed, brands must focus on building loyal customers through strong relationships and a sense of community. Creating meaningful engagement requires authentic storytelling that reflects the brand’s values and purpose. Consumers seek more than just products—they want connection, trust, and transparency. They expect brands to be genuine and consistent in their actions and messaging. Ultimately, successful retail is rooted in understanding people, respecting their needs, and creating lasting emotional bonds.
AJ: “With reinvention being widely discussed today, and given your experience leading large, complex organisations, where should a fashion company’s reinvention truly begin?”
TK: Reinvention is often misunderstood as starting with large campaigns or major organisational restructuring. While these may have a role, real change begins with improving internal decision-making processes. Many legacy and global companies struggle because of slow, complex approval systems where too many people are involved. Endless approval loops dilute original ideas and weaken product and delivery outcomes. This lack of agility prevents brands from responding effectively to market needs.
A critical factor in successful reinvention is establishing clear ownership and accountability. When responsibility is defined, decisions become faster and more focused. Equally important is breaking down functional silos. Departments such as product, merchandising, marketing, sourcing, development, and visual merchandising often operate independently, which limits collaboration and alignment.
Instead, companies must encourage cross-functional integration through shared touchpoints and early involvement. For example, visual merchandising teams should be engaged well before products reach stores, ensuring they understand and support the brand’s seasonal narrative. This integrated approach strengthens consistency and execution.
By streamlining decision-making, promoting collaboration, and aligning teams across physical and digital channels, organisations can create more effective reinvention and deliver stronger, more cohesive consumer experiences.
AJ: How do you see the physical retail evolving today and in the future?
TK: Retail is not dying; only poor retail is. Despite years of speculation about the decline of physical stores, they remain highly relevant today. However, the conversation must shift from focusing on channels to focusing on consumers. Shoppers no longer distinguish between online and offline; they expect a seamless, consistent experience across all touchpoints. This is why the concept of ‘phygital’ retail is gaining importance, where digital and physical experiences are fully integrated around the brand.
For today’s consumer, the brand experience matters more than the platform. In-store environments must offer engagement, convenience, and emotional connection, matching the quality of online interactions. This presents significant opportunities in markets like India, where experiential retail is still evolving. Brands must also rethink the role of stores. They are no longer just sales outlets but can function as marketing platforms, community hubs, or learning spaces. Examples like Apple, Lululemon, and Gymshark show how stores can educate, inspire, and connect with consumers. This experiential approach will shape the future of retail.
AJ: When it comes to consumer value in apparel, which aspects do you think are currently underestimated, and how could this shape the market in India?
TK: Consumer value in apparel is often underestimated in terms of simplicity and effort reduction. ‘Less is more’ remains a powerful principle, as consumers do not necessarily seek more variety or trends, but easier, more confident decision-making. Whether online or in-store, the experience must feel effortless. When internal teams work seamlessly together, this efficiency is reflected in the customer journey. In markets like India, shoppers want clarity, consistency, and trust across channels. They value simple communication, intuitive layouts, and easy navigation that removes confusion. Products and messaging should be so clear that anyone can understand them instantly. By focusing on reducing effort and complexity, brands can strengthen confidence, loyalty, and long-term engagement in a highly competitive apparel market.
TK: Where do brands and retailers most often get stuck today, and in your advisory work, what do you see as the three key factors for success in modern retail?
AJ: The most important priority in retail is, first, the consumer; second, the consumer; and third, the consumer. Retail is fundamentally about people. In today’s world of AI, digital tools, and phygital platforms, it is easy for brands to lose sight of the human behind every purchase. Technology should support, not replace, human connection. When companies become overly focused on systems and innovation, they risk forgetting real customer needs and emotions. Sustainable success comes from consistently understanding, respecting, and engaging people. Keeping the consumer at the center must remain the guiding principle for every retail strategy.
AJ: When entering a market like India, how can brands balance local adaptation and what are the most common mistakes they make in doing so?
TK: When entering a market like India, brands often struggle to find the right balance between localisation and maintaining their core identity. The most common mistake is swinging too far in either direction, be it over-localising or under-localising. Over-localisation is particularly risky, as it can lead to an ‘ocean of sameness,’ where brands lose their distinctiveness and start looking alike. In trying too hard to fit in, companies may dilute their brand DNA and weaken their global positioning. At the same time, some level of adaptation is necessary. Differences in climate, cultural preferences, regional tastes, and religious considerations must be acknowledged. Ignoring these factors can make a brand feel disconnected from local consumers.
The key lies in balance. Ideally, 60–70% of a brand’s offering should remain consistent globally, preserving its identity and values. The remaining 30–40% can be adapted to local needs. This approach ensures relevance without compromising authenticity.
AJ: Looking 10 years ahead, what leadership habits do fashion executives need to unlearn to drive sustainable growth in fast-growing markets like India?
TK: I believe this applies across all markets. The key is to simplify and accelerate decision-making while designing for change rather than relying on predictions. While AI will play a major role in forecasting, it cannot replace human creativity or emotional insight. It cannot design experiences or deliver the feelings that connect with consumers. Focusing on agility, adaptability, and human-centered design will remain essential for long-term success.
TK: Your views in terms of future retail?
AJ: No one can truly predict the future, but brands can prepare by staying deeply focused on the consumer. Building loyalty comes from creating genuine connections and strong communities. Flexibility will be essential in the coming years, allowing businesses to adapt quickly to change. At the same time, AI must be integrated seamlessly, working in the background to enhance experiences without being visible to customers. When technology feels natural, it adds real value. In a challenging economic environment, brands must also explore new revenue streams such as retail media, subscriptions, and other direct income models. Above all, success will depend on remembering that retail is ultimately about people and meaningful relationships.
