WoolProducers Australia Open Letter Questions Impact of AWI Promotions
An open letter by WoolProducers Australia sent to Australian wool growers in January questions the value of marketing programs run by AWI, and in particular the impact on the Eastern Market Indicator (EMI). This letter implies that marketing activities do not benefit the Australian wool growers. Such an assertion is misguided.
Not all marketing programs run by AWI may be successful, and indeed, how is a successful promotion accurately measured? Take as an example – the development by AWI and Prada of sportswear for The Americas Cup – more than 28 new brands approached AWI to develop new wool product lines after this promotion. 10 years ago AWI couldn’t even get through the doors to talk to some of these brands.
And what about the latest AWI Wear Wool Not Fossil Fuel promotion? This promotion has been watched over 130 million times – how do you measure this on the EMI?
I would like to remind everyone that The Woolmark sign used to be the most recognised logo in the world. This is no longer the case.
We have seen how removing marketing and promotion can affect fibre sales and fibre profile – look at New Zealand. Some years ago a group of NZ wool growers, who thought they knew better than anybody else, destroyed Wools of NZ, a body similar to AWI, and abolished the wool levy. The proof is in the pudding. NZ wool prices are at the lowest level they have ever been, demand is poor, and the industry and NZ government is now taking steps to re-establish some promotional activities for the industry.
Wool is a commodity, and like all commodities it is at the mercy of the consumer. If consumers do not understand and value wool as a product they will not buy it. To think that consumers will understand the benefits of wool fibre and buy wool products without any promotion is naïve and unrealistic. And if Australian wool growers take the same path as New Zealand their industry will suffer.
Other fibre industries, both natural (cotton) and synthetic are supported by powerful and well healed promotional bodies. Without the advocacy of AWI and IWTO the wool industry has a dim future.
Victor Chesky
Editor
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