Mustang CEO Andreas Baur on change: “Heritage must not become a museum”

This article is based on an independent editorial interview and was not created as part of a paid collaboration.

How much of its past can a brand carry while remaining relevant for the future? For Mustang CEO Andreas Baur, finding the right balance is part of his daily leadership work. In an interview with FashionUnited, he discusses guiding the almost 70-year-old German denim brand through a period of change. Baur also talks about mastering the balancing act between heritage and renewal and understanding artificial intelligence (AI) as a future entrepreneurial task.

A system instead of individual adjustments

When Baur joined Mustang in 2019, it quickly became clear that isolated adjustments were insufficient. The brand, product and distribution had to be rethought, as did the organisation and financial management. Everything needed to work together more closely. “A strategy provides direction and orientation. Transformation only becomes effective when it truly interacts with people, processes and numbers,” explains Baur.

The pandemic, supply chain issues, inflation and, most recently, a noticeable reluctance to buy have repeatedly demanded adaptability from the company. Baur’s conclusion is that even if you know the direction, you must remain prepared to adapt the path. The strategic direction has not changed, but the pace and use of resources have.

Heritage as a compass for the future

For Baur, Mustang's long history in denim is primarily an opportunity: “For me, heritage is valuable when it provides orientation, not when it becomes a museum.” He sees its position as the first European denim brand as a central part of the brand's core. “Denim is our origin, our expertise and the anchor of our credibility.” Fits, materials and distribution channels can change, as long as the development originates from the brand's core. The core must be stable so that the product, communication and distribution can be boldly developed further.

“Today, I make an even more consistent distinction between what we know, what we assume and what we simply cannot know,” says Baur. He focuses on scenarios and adaptability instead of long planning horizons. “In stable markets, you can plan and optimise for a relatively long time. In a volatile environment, however, the importance of speed, scenarios and the ability to correct decisions increases.” For him, leadership means providing orientation and remaining open when new facts require a reassessment.

“Speed has become more important. Speed must not be confused with hasty action,” Baur emphasises. Before making key decisions, Mustang discloses the underlying assumptions: what is expected; what risk is being taken; and how can a false assumption be identified? “I don't believe in waiting for complete information security in uncertain times. It usually doesn't exist.”

Competitive in a changed market environment

“Consumer restraint is currently one of the biggest challenges. Customer footfall and sales are under pressure, while costs continue to rise,” says Baur. Geopolitical uncertainty and regulatory requirements add to this. For him, this raises a fundamental question: “How must we structure our business models so they remain sustainably profitable, even in a lower-growth environment?”

Compared to younger, digitally native competitors, Baur sees different strengths rather than a superior model: speed on one side, trust and a credible history on the other. “I don't believe in the question of analogue versus digital. The winners will be those who bring together the strengths of both worlds.”

Baur rejects prioritising between brand, product and distribution, as the three areas are interdependent. A strong brand without a compelling product fizzles out; a good product without distribution reaches no one; and distribution without brand power remains interchangeable. The greatest leverage lies in thinking of all three as a system.

Artificial intelligence as a leadership task

For Baur, digitalisation is a cross-functional issue that extends into almost every company process. He believes artificial intelligence, in particular, offers great potential for a data-intensive industry. The decisive factor is not the most spectacular application, but the measurable benefit. In the long term, the technology is also likely to change the organisation of companies as a whole. “It will become exciting where companies begin to fundamentally rethink processes, decisions and collaboration.” This makes the development an entrepreneurial transformation task for Baur, not a question for the IT department.

In the coming years, Baur wants to strengthen Mustang's role as a European denim brand, especially outside its German home market. He is not aiming for growth at any price. “We want to grow where we can be relevant as a brand and where this growth makes economic sense.” The focus is on internationalising the wholesale business, the digital business and, above all, a compelling product.

This article is based on an independent editorial interview and was not created as part of a paid collaboration.