Last chance for marketing: AWI

Because the Australian wool market finished 0.7 per cent lower last week, Australian Wool Innovation (AWI) believes there is one last chance to get the marketing right.

AWI and Woolmark Australia general manager Stuart McCullogh expressed his concern at the Stud Merino Breeders Association of WA annual general meeting last week in Cottesloe.

"Every kilogram of wool produced in Australia does actually sell - it is just a matter of how much value there is in the return to keep the industry viable," Mr McCullogh said.

Compounding this dilemma last week was stronger exchange rates, over which AWI has little control.

But a stronger presence of European wool buyers at last week's sales was an encouraging sign.

Australian Wool Industries Secretariat consultant Peter Morgan said the increased European buying was during a steady week in the market where there was strong competition in the sale rooms.

Mr McCullogh said that to increase this competition the marketing of Australian wool needed to be aimed at areas of the world with higher populations, colder climates and affluence.

He said that China sent half of its wool production to other parts of the world and kept the rest for domestic use. While Asia seemed to be steadily creating its own demand for wool, North America and Europe were ripe for AWI's focus on building more demand.

Mr McCullogh said most of the marketing push should be directed at the large retail potential for below the waist woollen clothes as well as interior products for middle micron wools.

"We are missing the market in below the waist marketing," he said.

"At first we thought the shower suit produced for the Japanese consumers was too gimmicky, but after the first 400,000 suits were sold, it seems we may need to be looking at these types of innovations to sell more wool.

"Scientific information such as the fact people sleep better in wool will play a part in increasing the demand for our broader wool types."

One last chance of getting it right would mean educating potential consumers who were unaware of the benefits of wool or those chasing trendy brands.

"We need to convince them that the label will swing better if it carries Australian wool," Mr McCullogh said.

Wool sales will be held in Newcastle, Melbourne and Fremantle this week, when 47,756 bales are rostered for sale.

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