Merino to be tested the US way

SYDNEY: Australia's Merino wool market looks set to benefit from a US retail test marketing program (TMP) designed to promote extra fine and fine merino wool.
Targeting high profile US retailers Saks and Dillards, the program was a collaboration between wool brand Woolmark's owner Australian Wool Services (AWS), research body Australian Wool Innovation (AWI) and the International Wool Textiles Organisation (IWTO).
Woolmark Company executive director Brenda McGahan said it was hoped the initiative would play a role in winning back market share from synthetics as well as boosting the price of extra fine merino.
"The fact is that Australia produces 95 per cent of the world's superfine merino wool, but we're getting a terrible price for it.
The basic proposition [of the TMP] is 'can you influence sales through targeted marketing?'".
The project would roll out later this year for the northern hemisphere autumn winter season, McGahan said.
"It's one part of an integrated, two-pronged marketing strategy; We're looking at ways to influence the influencers - in other words designers, manufacturers and retailers, while influencing consumers is the other prong," she said.
"We're employing a differentiation strategy focusing on extra fine Merino wool, which uses 19 microns and finer with the idea of 'leading with our best to sell the rest'.
US retailers were chosen for the program because of the sheer size of the market and because it had a high proportion of high income consumers with a propensity to buy beautiful clothes and also had the ability to pay for them, she said.
The TMP would test two different profiles; upmarket department store Saks was an ideal test bed for high end branded womenswear product such as Max Mara and Ralph Lauren, while men's department store Dillards - which operated a significant private label business - would give insight into the mid-market menswear sector.
"In addition, Dillards is a retailer from warmer southern states such as Florida, which will allow us to market wool as a 12-month fabric."
Meanwhile, discussions were also afoot around the possible merging of AWI and AWS to create a single wool research, marketing and branding entity.
"I have no doubt that combining the expertise of the two organisations would greatly benefit the interests of Australian Merino," McGahan said.