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Wool Stocktake : AWI Annual Report 2009-10
Zhejiang Qianqiu Knitwear Co Ltd, a knitting company in China, last year had been looking to strengthen its brand position by working with a quality fibre and a well-respected ingredient brand. Due to AWI involvement, Merino wool and the Woolmark brand are the centerpiece of Qianqiu's new marketing campaign. AWI provided technical and marketing assistance to Qianqiu, which improved the quality of the company's knitwear and also provided it with an effective branding strategy for the launch of its autumn/winter 2009/10 product range. Qianqiu, a Woolmark licensee, has about 400 retail outlets, mainly in eastern and northern China. It sells men's and women's knitwear products -- about one million pieces of wool knitwear a year. This consumes more than 300 tons (about 300,000 kilograms) of Merino wool. Since working with AWI, the company's sales have increased by 200,000 pieces. AWI will continue to strengthen its relationship with Qianqui by offering training seminars about new textile innovations from AWI, the Woolmark brand and knitwear trends to the company's staff. India's largest private-sector company, Reliance Industries Ltd, might not be a household name in Australia, but with annual revenue of US$32 billion -- equivalent to the revenues of American Express, Coca Cola, Apple and DuPont -- it is the type of partner with which AWI is keen to do business. Last year AWI began a joint marketing campaign with Reliance in India. The campaign promoted an innovative range of trans-seasonal wool/polyester worsted suiting in a market dominated by polyester. The Fresca range is Wool Blend-certified. Its major feature is its antibacterial, feel fresh' properties. A modest campaign investment of $90,000 by AWI was more than matched by Reliance, with the textile giant's spending on marketing totaling many times more than AWI's investment. Collaboration with key decision-makers in the apparel industry such as Reliance, helps AWI deliver a strong return for Australian woolgrowers. In this campaign, AWI leveraged marketing funds in an extremely efficient manner. It is a very cost-effective way of operating. Reliance is a Fortune Global 500 company and the largest private-sector company in India. By working business to business to consumer' through targeted campaigns like this, AWI is making more Australian Merino wool available at retail. Media activity for the autumn/winter 2009/10 season began at the start of August 2009 and ran to the end of November 2009. The Fresca product is produced by Reliance under its flagship textile brand VIMAL'. It is being sold in VIMAL's 400 retail outlets across India; plus it is being distributed to thousands of multi-brand outlets across the country. Chinese knitting company Qianqiu s new marketing campaign was built around the Woolmark brand. A major cotton apparel manufacturer has introduced Australian Merino wool into a range of its cotton yarns to provide trans-seasonal garments with a softer and more luxurious feel. The yarns, developed by the Esquel Group with AWI support, are indicative of a new trend by cotton apparel manufacturers to achieve a more comfortable feel in their garments by using cotton/Merino wool blends instead of 100 per cent cotton. The Esquel Group is one of the world's leading producers of premium cotton apparel. Based in Hong Kong with production facilities in China, Malaysia, Vietnam, Mauritius and Sri Lanka, the group manufactures for some of the world's best known brands, including Tommy Hilfiger, Hugo Boss, Nike, and major retailers such as Marks & Spencer. By blending Merino wool with cotton, AWI and Esquel have created yarns that are softer and more comfortable to touch and wear than 100 per cent cotton. The yarns are lighter, breathe better, have more elasticity and provide better UV protection. The launch of the ComerinoTM yarns was particularly significant last year given that 2009 was the United Nations International Year of Natural Fibres. REPORT OF OPERATIONS -- MARKETING & OFF-FARM R&D
AWI Annual Report 2008-09
AWI Annual Report 2010-11