Australian Wool Innovation (AWI) is rolling out a $1.4 million marketing program involving five major Japanese retailers during 2008 and through to March 2009.

The aim of the program is to create just under 1 million kilograms of new demand over the next three years for the world’s most natural fibre - Australian Merino wool.

Japan is a priority strategic market for the growth in demand for Australian Merino wool. It is a sophisticated market, which is well represented by a small range of retailers. Five of the leading retail apparel groups in Japan will join with AWI to promote the ‘Excellence in Australian Merino Wool” marketing campaign.

Educating the market is particularly important as the attitudes of young Japanese consumers have become more evident since the mid-1990s. Young consumers who did not experience the past wool marketing campaign in Japan will be made aware of the positive attributes of wool clothing.

“Japan is the second largest wool apparel consuming country in the world after China, with an estimated retail market size of 80 million kilograms of wool,” said Craig Welsh, AWI Chief Executive Officer.

Mr Welsh said there has been an absence of a targeted wool marketing campaign in Japan for more than a decade and Japan has a particularly large influence on global superfine wool demand with its consumer preference for suits.

The retail partners consist of:

Isetan - Fourth largest department store for apparel sales in Japan and a market leader in retail fashion (pictured).

Onward Kashiyama - The largest apparel manufacturer and wholesaler in Japan. They are ranked first in men’s wear sales and second in women’s wear sales. They are the number one supplier to most of the department stores in Japan.

Sanyo Shokai - Ranked second in national mens wear sales in Japan and sixth in women’s. Servicing mainly department stores, Sanyo Shokai carries a wide range of successful local and international brand licences.

Aoyama Trading - Japan’s largest men’s wear chain store. They are ranked first among total men’s apparel retailers in Japan. Its impact on national wool consumption is by far the largest of all apparel business in Japan with its high concentration on men’s business suits.

Flandre - Known as a market leader in young women’s apparel in Japan. Successful operation made the company turnover grow six times in the last 10 years, currently ranked 8th largest in all women’s apparel manufacturers in Japan.

These partners were selected on the basis of their influence in the market, reputation for consumer marketing and commitment to increase the volume of wool merchandise during the course of the program.

The program will offer the retailer:

* In-store displays

* Swing tag - branding, description of the product and the fibre story

* POP such as poster designs and banners

* Advertising templates for each collection, and for the program as a whole

* Training kit for retail staff on Australian Merino wool

* In-store events and campaigns

* Sales staff training

* Website resources

* Direct mail advertising

Source:www.woolinnovation.com

Released by: AWI Corporate Affairs. Media contact: David Dawson 0428 782 266