Fashion-Tech in Stockholm

Fashion, Tech, and Growth Opportunities

Stockholm isn’t just stylish – it’s smart. The Swedish capital houses headquarters for a plethora of internationally renowned fashion brands. From omnipresent powerhouses like H&M and Filippa K to chic brands like Acne Studios, Our Legacy, Totême, and Mini Rodini. The trendy atmosphere, in turn, attracts other actors; Prada, Louis Vuitton, and Uniqlo have all recently set up shop in Stockholm. Combined with a booming tech sector, this makes Stockholm a unique intersection of fashion, technology, and sustainability, and a top-tier destination for innovation and success.

The established major brands are part of a larger fashion ecosystem that they both nurture and benefit from. With ample collaboration opportunities with tech companies, the city is a thriving environment for cutting-edge fashion brands. The start-up scene also hosts numerous tech incubators – even one focused solely on innovative fashion.

The available venture capital (both domestic and foreign) further helps businesses to grow even faster. Small and Medium Enterprises (SME), especially, can take advantage of the city’s unique offering to seek growth through an IPO and further capital via a listing. This is supported by a solid financial ecosystem, where the stock exchange, banks, private equity firms, and other players actively work together.

Sustainable Fashion: Stockholm’s Golden Thread

The fashion industry is transforming, shifting towards circular business models, digitalization, and consumer-driven sustainability. The Stockholmers are happy to shop second-hand, with new sustainable fashion concepts – with different business models and target audiences – keep appearing. Sneakershyllan, Cirkus, and A Retro Tale are all tell-tale signs that Stockholm is not just embracing sustainability – it is monetizing it.

And it’s not just a local phenomenon either – the Slow Fashion District was recently named one of TIME Magazine's best places in the world. This example illustrates how Stockholm is leading the €350 billion global second-hand fashion boom, proving that circular business models can be environmentally and financially rewarding.

Stockholm’s fashion sector is particularly notable for its high-set sustainability ambitions. To highlight these efforts and inspire others, the Stockholm Fashion Council selects a company to receive the Encouragement for Action award. Furthermore, the city of Stockholm itself is committed to becoming carbon-positive by 2030.

Seeing the Pattern: Fashion Industry Trends and Projections

• Swedish fashion exports have surged by 75% since 2018, with a 20% year-over-year increase in 2022, proving Stockholm’s global dominance in high-growth fashion exports.
• Social media is accelerating industry shifts: On TikTok, #upcycling has 10 billion views, #sustainablefashion has nearly 5 billion views, and #slowfashion has 1.5 billion views – a testament to shifting consumer priorities.
• The global second-hand market is set to nearly double by 2027, reaching €350 billion, driven by economic necessity and sustainability concerns.
• AI-powered styling, virtual try-ons, and digital garments are more than innovations – they are cost-cutting game-changers, reducing production expenses, waste, and improving margins.
• The Swedish second-hand market is expected to grow from €1.7 billion to €5 billion by 2034

In short, Stockholm is not just a fashion hub
—it’s the blueprint for the future of the industry.

In Summary: Growth, Sustainability, and Innovation

• Market Growth: Sweden’s fashion exports are booming, and its digital & circular models continue expanding.
• Sustainability Leadership: Strict environmental policies and consumer-driven sustainability demands make Stockholm an ideal hotspot for future trends.
• Tech-Driven Innovation: AI, automation, and metaverse fashion are transforming business models, making Stockholm the leader in scalable, high-ROI fashion-tech investments.