World’s Finest: The Story Behind The Woolmark Company’s Domination Of The World Market With Australian Merino Wool
Since the acquiring of The Woolmark Company by Australian Wool Innovation (AWI) in 2007, a dedicated effort was made towards increasing the demand for Australian wool around the world. This initiative bore fruit, and over the course of 15 years, The Woolmark Company has fully reconnected with its supply chain and consumers and have made a significant impact in the marketplace.
One of the most important pillars of their strategy for succeeding in the global market has been to analyse and keep track of both long term and new trends amongst their consumer base, which the company has used to expand commercial opportunities for their product, across the globe. While numerous countries around the world laboured under the ill effects of the pandemic, it is interesting to note that the wool industry in Australia was not as badly impacted.
The rural areas where wool is grown were virtually unhindered, which led to smooth production as well as maintenance of the quality of Australian wool. The Woolmark Company in itself also suffered minimal damage, due to their previous focus on being a digital first company which enabled them to cope well with remote working and digital communications. Additionally, the lockdown led to many purchases being made online, which has added a digital element to many of their market collaborations. That said, the pandemic did oversee a significant shift in the kind of clothing the consumers preferred. However, there has been a notable rise in demand for knitwear as well as sports and activewear, to which the company was able to rise to, due to their speciality in Merino wool- a well sought after naturally breathable, elastic fibre with anti-odour and thermoregulatory properties.
Indeed, Australian Merino wool is The Woolmark Company’s most valued asset, with its widely known reputation as a premium fibre that provides a superior range of natural qualities such as its softness next to the skin and beautiful drape. It is a unique fibre, loved by fashion and apparel designers for its quality and versatility, which makes it suitable for a range of applications from luxury fashion to high-performance activewear. Furthermore, as a natural and circular fibre, Merino wool is becoming more attractive to consumers who are concerned about the environment and the effect of their purchases on the planet.
India, has been a long-term area of operation for the Woolmark company, with business dating back as long as 50 years. The company has also extended its reach towards education, research and development, and towards the marketing of Australian wool.
India has been recognised as the second largest importer of their wool, behind China, making it a highly valued market for their brand. The elimination of the 2.5% tariff on Australian wool imports into India, announced in April as part of the new Australia-India Economic Cooperation and Trade Agreement, is likely to increase the amount of Australian wool imported into India for processing.
Furthermore, India is also a popular destination for sourcing handmade textile products due to its rich heritage and knowledge of various crafts and techniques. The various properties of Merino wool have made it an ideal fibre for warmer climes like India, with its ability to actively respond and adapt to the body’s temperature being well-sought out. As a result, the Woolmark Company has, over the years, worked with prominent spinners such as Jaya Shree Textiles and Oswal Woollen Mills.
Weavers such as Raymond have been a preferred fabric partner of theirs, having used their product for several major projects of theirs. Knitters of importance include Space Knitwear, with which The Woolmark Company has worked on developments for both local and international requirements. They have also worked with organisations like Bhutti Weavers Co-operative Society which has a longstanding relationship of more than 50 years with Australian Merino wool.
Australia’s existing fibre capacity comes up to about 180 million kgs of Merino wool, which makes up 65% of the global fibre supply. It is, however, worth noting that the superior quality of Australian Merino wool has led to fine apparel manufacturers preferring it over the Merino wool produced in other countries. As a result, 90% of the Merino wool that is used in fine apparel comes from Australia. The company has dedicated itself towards building the demand for Australian wool by reinforcing it as a premium fibre for luxury apparel and sportswear in the global market. As of now, their key areas of focus include the promotion of the eco-credentials of wool and taking advantage of the recent growth in the e-commerce sphere.
The Woolmark Company has placed ample importance in the areas of recycling and sustainable processing, with their understanding that wool is indeed the most recyclable fibre on the planet. The incorporation of ‘Closed loop’ recycling, which involves high-value wool garments being deconstructed to enable new yarns to be spun which leads to new high-value garments fabricated, has long been an integral part of the wool textile industry.
To this day, The Woolmark Company continues to educate brands and the supply chain about wool’s natural eco-credentials and its suitability and benefits for the circular economy. In contrast to synthetic fibres, wool fits into a sustainable circular model of textile production that minimises waste and pollution. It also has a unique set of ‘circular’ features – such as being a renewable and biodegradable fibre, suitable for reuse and recycling, and free from microplastics – which has made the fibre more sought after by designers, brands & retailers.
Enhancing traceability has also been an area that the Woolmark Company has placed immense importance on. From investing in initiatives through the supply chain to enhance transparency to collaborating with pioneering technology company Everledger so as to successfully track Australian wools as they move along the supply chain, the company has cut no costs towards ensuring that the high reputation that Australian wool holds in terms of quality, authenticity and low eco-footprint is actively protected in the eyes of the consumer. These efforts will lead to the creation of value for manufacturers, retailers and uphold traceability for the consumers.
The future of The Woolmark Company looks very promising indeed, with their iron clad determination to continue expanding the commercial opportunities for Australian wool across the globe and their intent on adopting a clear, swift, and practical approach to any obstacles or opportunities that may present themselves. There is no doubt that the COVID-19 pandemic has cast a fog of uncertainty over their key markets, which could potentially pose an even bigger hurdle than before. In addition to this, the matter of ensuring that the proposals before the European Union regarding environmental impact are given the right amount of consideration by the appropriate authorities there. However, the company’s focus on long term consumer trends towards products that are environmentally friendly and supportive of health and wellness has served to further improve the reputation of Australian wool, which has worked immensely in their favour.
In addition to this, the company’s Managing Director, Mr John Roberts, has expressed his interests in increasing the profitability and sustainability of the wool processing and manufacturing supply chain, and aims to develop new innovative manufacturing and technology processes, which will lead to the development of exciting new product ranges.
Constantly keeping in track with popular consumer trends and upholding the quality of their product whilst ensuring that consumer wellness, environmental health, sustainability, and traceability are upheld will continue to be the pillars behind The Woolmark Company.
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“I make a commitment that The Woolmark Company will continue to take advantage of these trends and expand the commercial opportunities for Australian wool across the world, including India. We aim to build the reputation for Australian wool amongst the global apparel industry, increase business development and an alumnus of Australian wool advocates, and develop and implement consumer marketing campaigns with key designers, brands, and partners.
– John Roberts
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“Raymond’s 100 % wool and wool rich suiting fabric are soft and supple and has great drape and style. With wool softness and fluidity it has elegant look and can be distinguished when the fabric hangs or when the fabric is converted to suits. It retains its shape and has natural wrinkle recovery and stretch property and lasts for many years and still looks as new after Dry Clean.
Raymond association with WOOLMARK is very long and goes beyond 30 years and three generation. Raymond is license holder of WOOLMARK company since 1995 for wool and wool blended product of Suiting, Apparel and Blankets. From WOOLMARK Company we receive the support in the area of industry intelligence, product development expertise and colour forecasting for summer spring and winter. We also get the technical expertise from WOOLMARK Company as and when it is required. WOOLMARK licensees help us to promote the quality of our product in domestic and export market.
– Harish K. Chatterjee, Vice President – Manufacturing, Raymonds
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“Wool is the most primitive fibre human civilization learned to use after animal skin. Undoubtedly wool is the best suited material on human skin, just extension of natural hairs already existing. Wool is wrongly labeled as winter material whereas it is the best fibre for all seasons, protecting body heat in winter, resisting external heat in hot summer, transporting moisture in humid – sweating climate, presenting dry, odour free surface for body comfort, natural anti- bacterial, fire retardant, UV resistant, high stretch, quick stretch recovery, wrinkle free, longer retention of new look of garment with very long durability, etc.
Moreover, it is sustainable, harmless to environment – what we must focus is to offer a better world to future generations. Jayashree Textiles, leading Textile manufacturing company in Grasim Industries Ltd. is associated with Woolmark & Australian Wool Association since nineties of previous century and has taken prime role to import sizable volume (about 5%) of Australian fine wool, processing raw wool to clean sliver for spinners and offering a wide range of Woolmark accredited worsted yarn to weavers, knitters in India as well as in all five continents in quality at par with top 2-3 international worsted producers . Incidentally Jayashree is the only processor of wool in India to offer super wash/ machine washable easy-care wool in India to eliminate hassles of dry cleaning of wool products.
– Aloke Roy, Vice President – Wool Business, Aditya Birla