Wool to make its mark in the USA
 

Brussels, 13/06/2006

In a significant breakthrough, famous luxury high-end retailer Saks Fifth Avenue and mid to upper-tier retailers, Dillards have signed up to the wool industry’s Test Marketing Project (TMP) – a collaboration between the International Wool Textiles Organisation (IWTO), Australian Wool Innovation (AWI) and Australian Wool Services (AWS) owner of the Woolmark. Andrew Jennings, President and COO of Saks, reinforced his company’s commitment to the project earlier this month at the International Wool Textiles Organisation (IWTO) Congress in Cairo, Egypt. He said “With your support Saks Fifth Avenue is committed to launching a new private label women’s trouser line in the finest wool. We are confident if we educate the consumer and create excitement around wool, this program will be an enormous success and will lead to future collaborations between Saks Fifth Avenue and wool producers ….it is only just the beginning.”

TMP Project Director, Brenda McGahan, said the TMP remained focused on selling existing garments that have high wool content.

“We chose the US for the test program because we wanted to target regions with a high incidence of consumers, with high disposable income and disposition to buy quality clothes.
“It is one of what we term, four super regions for wool consumption that are potentially worth more than US$500 billion dollars at the retail level.

President of IWTO, Michael Lemprière said that from the outset of the TMP in October 2005, the industry consulted with Boston Consulting Group, and together developed a business case that said action must be taken to promote demand for wool. ”We are now at an important milestone in that process and with the help of Saks and Dillard’s – we’re testing it.”

Chairman of AWI, Ian McLachlan, said his Board had no hesitation in making funds available on a co-funding basis for this Test Marketing Project.

Saks Fifth Avenue is renowned for its superlative American and international designer collections, as well as its first-rate selling services and expertly edited assortment of handbags, shoes, jewelry, cosmetics and home furnishings. Today, Saks operates 55 full-line stores in 26 states, 2 stores in the Middle East in Dubai and Riyadh, 52 OFF 5th Outlet Stores and a website, www.saks.com.

As a quality retailer based in the Southern States of the USA, Dillard’s will play an important role in delivering volume sales for wool apparel. Its broad reach across the US will ensure the TMP has the ability to deliver maximum fashion and value to America’s middle-to-high income earners by providing a mix of national branded products and private labels. Dillard’s will initially focus on woollen menswear in the southern US, which will help us reinforce that wool is a year-round fabric.

Ms McGahan said that both Saks and Dillard’s met the TMP’s very specific selection criteria:

• Leadership Positioning – Ability to position wool as a “must have” premium product;
• Wool Business Growth and Measurement – Commitment to new ranges and incremental wool sales;
• Marketing Investment – Matching TMP investment with retailers own vehicles and funds to create an €integrated campaign; and
• Education – Willingness to educate buyers, sales associates and consumers about the nature, uses and comparative benefits of wool.