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The wool industry
has stopped talking to its customers and promoting its products. This is
plainly evident in the poor prices achieved by the grower, the subsequent
low margins achieved by the rest of the chain and the reducing quantities
that are purchased year on year. We have not been promoting our products
and therefore the only factor that we have been able to use to
differentiate ourselves is price. This has meant a reduction in margins
throughout the demand chain to a level that is no longer sustainable. Our
product has such strong qualities and benefits that it should not have to
compete on price for the consumer’s discretionary income.
This situation has
been going on for several years, however, never has it been as critical as
it is today. The entire structure of the textile industry has changed
radically over recent times, particularly in apparel, where demand for
cheaper products on the high street has forced manufacturing to lower-cost
supply bases and inevitably be seduced into using lower-cost, poorer
quality fibres. The consumer no longer knows the benefit of buying wool
products and therefore doesn’t demand them from the retailer!
As we all know (and
our consumers should know too), Wool is nature’s miracle fibre – the most
versatile natural fibre in the world. Comfortable to wear – the warmest,
yet the coolest, adaptable to the wearer’s ambient temperature; rich and
versatile in design and colour; technically advanced; ecological and
bio-degradable; naturally flame retardant and protective; easy to care
for…. The list is endless… And the best part of the story – synthetic
fibres are always trying to imitate the qualities that are naturally
present in wool!
However, as a
natural fibre, wool has a long textile pipeline. Facing a decline in
market share, this inevitably has over the past few years, put pressure on
the entire demand chain, with many companies and their skills disappearing
completely. ‘The world has started to forget about wool. It is time for
radical action, the wool industry must unite in their efforts’ says Jo
Dawson, the Chairman of the International Wool Textile Organisation (IWTO)
Apparel Taskforce which has called for immediate action from all players
in the wool apparel industry, to improve the demand for wool.
Michael Lempriere,
newly elected president of the IWTO says ‘Wool is a high value fibre that
should be able to demand higher margins at every stage of the pipeline. It
is imperative to introduce wool into new markets; to invest in education,
research and innovation combined with demand driven marketing and retail
co-operation; and to market the benefits and features of wool by using a
consistent and compelling ‘wool story’.’
It is clear that the
wool industry needs to talk to its consumers and let them know the
benefits of wearing and using wool. To this end, the IWTO is mobilising
forces within the industry to confirm agreement that promotion is
necessary. The views from the industry have so far been unanimous – we
must promote wool if we want to survive! The promotion of wool comes at a
cost however, and support from all areas of the industry is required to
start the ball rolling by launching a marketing test. This “test and
learn” process will prove the efficacy of the marketing and confirm to any
doubting members of the industry that demand can only be improved by
increasing promotional efforts. The cost of this marketing spend can only
be seen as an investment in the future survival of the industry. No
investment will mean failure of the industry and the exit by many industry
players in search of better business opportunities elsewhere.
The call for action
has been well received so far and progress has been made. This needs to be
consolidated upon, and, following successful implementation of the
marketing test, the industry needs to act further. This means the
development of a global co-ordinated marketing campaign, which will need
to include the creation of one global wool marketing company to
co-ordinate the marketing and research and development efforts of the wool
industry worldwide.
The industry needs
to help itself and needs to act now.
For more information, please contact
Henrik Kuffner:
media@iwto.org
IWTO is the international body
representing the interests of the world’s wool textile trade and industry.
Our multi-national membership includes woolgrowers, traders, primary
processors, spinners, weavers, and garment manufacturers, together with
retailers and other companies involved in wool related businesses.
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