Wool Market Trends
 

Brussels, 27/09/2006

The last two weeks have been very important ones for the global wool industry, with four very critical bel weather events being held on either side of the Atlantic in the major centres of consumption and decision making, particularly for the high end of the market upon which quality wool’s future fortune is inextricably linked.

September 13th marked the launch of the first phase of the Test Marketing Project, conceived sixteen months earlier in Hobart at IWTO 2005, and sponsored by the unprecedented Global Wool Initiative of fourteen member countries of IWTO, Australian Wool Innovation and Australian Wool Services who are also the managers of the project.

The gala opening of Saks Fifth Avenue’s “Want It!” campaign, within which wool wool for apparel, particularly merino extra fine, was heavily showcased, was attended by over 1000 of the New York’s most discerning, and was voted as one of the standout events of that city’s famous Fashion Week for Fall/Winter 2006/7.

It is far too early yet to call how successful for wool this project will prove to be (this will be independently judged by two leading firms of retail analysists early in the New year) but suffice it to say that both the senior management of Saks and the representatives of the Global Wool Initiative who were there – IWTO President Michael Lempriere, AWI Director Hugh Nivinson and CEO Len Stephens, together with AWS Executive Director and project manager Brenda McGahan – were all delighted with how the twelve months of detailed work, planning and negotiation had come together.

Phase two will kick off next month with the launch of Dillard’s wool campaign aimed squarely at the aspirational mid/upper level consumer, thus supporting the unashamedly up market emphasis of the Saks offering.

The same week saw Milano Unica, the huge trade fair held with great flair and panache in the famous Italian city known as the centre of style and innovation, particularly as it concerns men’s wear. Here the cream of the world’s designers and producers of luxury fabrics and accessories come together to showcase their offerings and the buyers of the world congregate to make their choices.

Initial reports from Milano Unica demonstrate a renewal of optimism from the upper end European manufacturers and with it for top quality products made from fine wool.
This tends to confirm the recent optimism of trade buyers at auction in Australia and let us hope that this direction continues.

The better tone of interest continued last week in Paris at Premiere Vision, which fair is for women’s wear what Milan is for men’s. Cashmere continues to hold the high ground, but some of the new soft and luxurious fabrics made from superfine wool are gaining increasing attention here and the tone was certainly positive.

As counter to any sense of euphoria from trade reaction at Milano and PV, it could not be missed that at the other trade fair held in Paris, Texworld, a fair for the masses rather than luxe, that man made fibres have not been resting on their laurels and have been both developing and heavily promoting new generations of fibres that increasingly challenge wool in it’s heartland – men’s wear.


Any idea the wool can continue to “sell itself” was quickly dispelled by a visit to Texworld. Complacent we cannot afford to be. Wool, particularly fine wool has been cheap for several years and this fact, combined with the abundance of supply has encouraged wool back into many mid level ranges. However without ongoing innovative and well targeted marketing support, any significant price rise will risk sending these “fibre agnostic” buyers scurrying back to the financial comfort of our competitor fibres.
 

For further information please contact:

Michael Lempriere,
President, IWTO
president@iwto.org