I meet Mihhail Zigadlo at Racer Worldwide’s new headquarters, an impressive multi-level space carved into an old factory with tall windows offering panoramic views of Tallinn’s Old Town on one side and a glimpse of the Baltic Sea on the other. Raw, concrete, post-industrial.Racer is one of Eastern Europe’s most compelling fashion exports: a label that runs like a start-up, thinks like a cultural lab, and moves like a global brand. What began in 2017 as a high school project has since evolved into a tightly run, 16-person team that quietly outgrew its streetwear roots, without a single investor or traditional retail.As a proud millennial, I came in half-expecting a hype-seeker riding the wave of local fame. What I found instead was a well grounded entrepreneur. We didn’t talk hype. We talked business.
Estonia isn’t exactly known for streetwear. How did Tallinn shape your outlook on fashion and subculture?
I don't think it shaped it in a particularly special way, at least not in terms of style. But being cut off from the world gave us motivation. The scene in Estonia was so small and conservative that we knew from day one we had to go global. We couldn’t just focus on local popups or Russia, even if it seemed convenient. Strategically, it didn’t make sense long-term. So we built our presence in places like Paris, London, Berlin and focused on English from the beginning.
What about outerwear? It seems to be your strongest category.
That's 100% influenced by Estonia. We have pretty harsh winters. So when we make a puffer, it’s not just a look, it’s functional. Tested. Worn every day. That’s why it sells so well in Germany, Poland, Scandinavia. Our jackets and furs are built for real cold.
Racer launched in 2017 when you were just 16. It started as a culture-building project for Gen Z. Has the audience grown with you?
Yeah, definitely. When we started, it was all about the hustle, the hype, who had the longest queues, who sold out faster. Supreme, Off-White, Vetements, all that. But as we and our audience matured, it became more about design, quality, customer service. We still care about community, but now we care about product a lot more. It's also about building infrastructure, not just a vibe.
Do you think the moment you started Racer was unique or is it still possible to build a brand like that today?
I think it’s actually easier now. Back when we launched, people weren’t really buying through Instagram or TikTok. I remember taking a trip to Helsinki just to get a Thrasher tee, no one in my school had one. Buying online just wasn’t normal yet.Now, social commerce is the default. People trust it. But while it’s easier to start, it’s harder to stand out. When we began, it was the Wild West. There weren’t many doing what we were doing, especially around here. In Estonia, you don’t have celebrities or big fashion culture. But that pushed us to focus. We built a 16-person team, which most brands in London or Stockholm couldn’t afford. And most of our team grew with us, they learned the process here. That’s one advantage of being based in Tallinn: fewer distractions, lower costs, and space to really build both the creative and business sides.
What advice would you give someone starting a brand right now?
Don’t wait to be original. Just start. A lot of young people are paralyzed by high standards. That’s not how it works. They want to skip the "bad" phase. But you have to start somewhere - copy, imitate, experiment. That's how you develop your voice. It’s okay to be young and dumb at first.
Are you still designing for Gen Z?
Yes, but Gen Z has grown older. Our audience is more global, more diverse. In Estonia, we’re considered mainstream, like Tommy Cash. But in Berlin, Paris, LA, we’re alt, queer, niche. Our tagged photos show that. It’s about alignment. The fashion ecosystem is changing, the market is oversaturated. Influencer marketing is dying. What lasts is taste, community, and product.
Racer’s grown a lot, especially for an independent brand. How have you scaled without outside investors?
Around 2020 we dropped this hand-painted puffer jacket with a detachable hood, and it just started selling. Like, one day we sold 3K worth, next day the same, then 30K, then 60K. That’s when I realized, okay, this could be real. I took a small loan from my grandfather to buy more stock. My dad didn’t even believe it until we made more than his company that fall.We’re direct-to-consumer and self-funded. That’s how we can move fast and take risks. We’ve done viral shoots, wild campaigns, but honestly? What really works is product. We learned early on that quality and consistency win. We don’t shy away from carryovers. Some of our jackets are better than big brand ones, because they’ve been tested and continuously improved.I think people overestimate taste and underestimate logistics. Great design isn’t enough if your jacket doesn’t arrive on time or fits weird. We’re obsessed with every part of the pipeline.We just moved into a space with high ceilings and industrial floors, but not for clout, it’s for hosting, for building the kind of working environment that helps the whole team grow. We could’ve rented a flashy office earlier, but we waited until the timing and cost made sense.
Has your view on success changed?
Definitely. I respect the hustle more now. Building something that lasts is hard. I’ve seen amazing designers burn out because they couldn’t balance ideals and business. It’s about survival sometimes. Business and morals are sometimes in conflict, and you can’t fight every battle if you want to stay afloat.
You seem very business-oriented for someone in fashion. Where does that come from?
Many people in this industry don’t understand business at all. So many cool projects die because no one knows how to scale or reinvest. But I’ve always been interested in systems. Big fan of Steve Jobs. Not just for the design, but for how he built things. Infrastructure.
Many people in this industry don’t understand business at all. So many cool projects die because no one knows how to scale or reinvest. But I’ve always been interested in systems. Big fan of Steve Jobs. Not just for the design, but for how he built things. Infrastructure.Someone like Rei Kawakubo isn’t just inspiring because of the clothes, but because she built a whole infrastructure: Comme des Garçons, all the sub-labels, Dover Street Market. That’s legacy. To me, Racer isn’t just a brand - it’s a system. Like a town. I love building teams, setting up systems, figuring out operations. It’s a strategy game.
So you’re building your own infrastructure with Racer?
Exactly. Racer, the clothing brand, is the foundation, but we’re expanding it outward. We’re working in music with the first side project called Jessica 2010. We’re shooting films, preparing a reality show. We moved a young TikToker here from Latvia; now she’s running social content for us. Our video director, Martin Pihlap, was just a student when we met and now he’s winning awards internationally.It’s all happening inside Racer, but the structure supports multiple lanes. That’s what I want to build - something flexible but strong. Something bigger than just clothes.
That sounds like the beginnings of a creative incubator.
That’s the dream. Eventually, I want to build a kind of campus: 30% Racer HQ, 70% experimental space. A place where people can live, collaborate, build fashion, music, film. No flexing, just a real space for work and growth. We’re already doing it informally via mentoring, sharing resources, but one day, I want to give it physical form.
Story by Kamila KučíkováPhotography by Veera Gonchugova