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Wool Stocktake : AWI Annual Report 2008-09
Japan Marketing Program AWI s Japan Marketing Program (JMP) was hailed a success by its five retail partners after all recorded incremental growth in sales of Australian Merino wool products. The five retail partners -- Isetan, Onward Kashiyama, Sanyo Shokai, Aoyama Trading and Flandre -- were later joined in AWI s marketing efforts by two more Japanese retail partners Uniqlo and Konaka, who also increased the volume of their wool apparel sold. The campaign launched in 2008 resulted in a 26 per cent increase in Merino wool demand -- bucking a forecast decline in national demand of 14 per cent. The nationwide campaign blended a mix of television and magazine advertising, product catalogues, direct mailers, a special educational website, in-store displays and an extensive program of retail sales staff training. The print advertising alone was seen by more than 2.75 million magazine readers, while posters in trains and at train stations accounted for another 41.7 million commuter impressions. Topping these numbers were the 370 million promotional inserts in major newspapers the length and breadth of Japan. In sum, the partners invested a combined total of $5.3 million in media spending. This investment in consumer marketing helped lift the ratio of AWI/partner-matched funding from an original target of 1:2 to an impressive 1:4.7 -- affirming the five partners commitment to the program and their confidence in its ability to deliver sales growth. Key product innovations During 2008/09, AWI released premium value-adding innovations for the knitwear, woven, sports/active and corporate wear sectors: Merino PerformTM Merino PerformTM is AWI s new range of next-to-skin performance fabrics. Made from Extrafine Merino (17 to 19.5 micron), Merino PerformTM fabrics were the centrepiece of a global partnership between AWI and some of the world s best circular knitters. The supply chain currently includes market-leading companies in Australia, China, Europe, Japan, Korea and Vietnam. Merino PerformTM is the fruit of development work by AWI and The Woolmark Company, over several years, to introduce Merino to the sports and outdoor arena. Launched in January 2009 at three consecutive sport/outdoor trade exhibitions -- Outdoor Retailer in Salt Lake City, PGA Golf show in Orlando and ISPO in Munich, Germany (which is the biggest in the world, with about 2,000 exhibitors) -- Merino PerformTM has become very successful. The Merino PerformTM program, which has two key components -- Next-to-Skin and Advantage (formerly Sportwool ) -- drew accolades from the brands, retailers and manufacturers at each of the trade shows. AWI s Merino PerformTM program is targeting the fast- growing global sports and active wear segments. There was much industry excitement about the potential of Merino PerformTM, particularly as AWI has developed new product segments such as seamless knitwear, second layers, socks and base layers. Shower Clean Suit Tokyo businessmen have been rushing to get their hands on the latest must-have clothing item -- the suit that can be cleaned using a domestic shower -- since its arrival in Japanese department stores last year. The Shower Clean Suit, which was a joint product development between AWI and leading Japanese suit retailer Konaka & Co Ltd, sold out in Japan over the spring/summer season. The suit is the world s first Merino wool, non-iron suit that can be rinsed under a normal shower stream to remove the dirt, stains and smells of the day. The suit can be washed in the evening, hung up to dry and be ready to wear the following morning, with no ironing required. Through the Merino FreshTM campaign, the technology was transferred to companies in China, India and Korea. Retail interest across the globe was high. AWI launched the Merino FreshTM program for the autumn/winter 2009/10 retail selling season at the Première Vision trade show in Paris in September 2008 and Intertextile in Shanghai in October 2008. REPORT OF OPERATIONS -- MARKETING AND SALES
AWI Annual Report 2007-08
AWI Annual Report 2009-10