Our Strategy
AWI manages highly focussed research and development programs to create unique and innovative products. These products are sold into or developed collaboratively with our global business partners.
Importance of AWI’s Business Partners
Any new Australian Merino product can only be deemed successful if there is a consumer at the end of the supply chain who wants to buy this product.
From the moment that fibres leave the farm gate, all the way down the wool pipeline, AWI has a focused objective to deliver products that satisfy a certain market desire or niche.
Our focus on the global apparel market centres around developing products in the following areas:
- Knitwear
- Woven
- Outdoor
- Sports
- Corporate wear
Our global business partners are in-touch with what their consumer wants in a garment.
Understanding exactly the factors which influence those considering buying a woollen product is fundamental to the way any new AWI product is created.
We only ever develop products that have a specific consumer challenge or garment characteristic in mind.
This is why AWI often works in collaboration with some of the world’s most important retailers and manufacturers: to always deliver new fabrics that are just what a consumer is looking for.
When creating a new fabric in collaboration, both parties stand to benefit greatly. AWI creates a new or expanded market for Australian woolgrowers. Our partners reap the benefits of having an exclusive or innovative new product, that can directly increase their sales.
Push and Pull Product Development
Research and development undertaken by AWI in the creation of new products is almost always driven by one of two strategic mechanisms, both of which centre on creating new markets for Australian Merino.
These are known as ‘Push’ and ‘Pull’ strategies of development.
Push Development
Push development utilises the collective knowledge of AWI to produce a garment with the specific objective to reach new consumers without going into collaboration with a manufacturer or retailer.
These products are always targeted to addressing precise criteria, for example the reduction of pilling, which AWI research illustrates are sought after in the industry.
These are then ‘pushed’ to our existing and potential clients as a means to overcome issues that their consumers have traditionally held in their decision to buy wool garments.
The fabrics created under push strategies also have the benefit of highlighting the kind of innovation that AWI is capable of. For potential new partners seeing these items is often the stepping stone to the creation of other, new fabrics in collaboration.
Pull Development
Pull development is undertaken in collaboration with a business partner who comes to AWI with a specific challenge. This may be addressing a direct consumer need, such as the development of a machine-washable woollen suit, or may be a design characteristic, for example, the creation a wool fabric that drapes like silk.
Either way, it sets AWI an objective to work backwards down the supply chain. The benefit of working under a pull strategy is that AWI knows that the market is already there, the challenge lies in developing the technology and production knowledge to meet the criteria in a timeframe the market requires.
Technology and Knowledge
One of the distinct advantages that AWI holds in being a company focused on research, development, innovation and marketing is that with the creation of each new product, we increase our knowledge base and our potential to create other new fabrics.
The technologies, supply chains and know-how that is built up by AWI in creating any new product, builds on the intellectual property already inherent in the organisation.
This intellectual property and technological innovation directly impacts on the ability of AWI to rapidly respond to new challenges and to develop new products for our business partners that, in turn, increase the return to Australian woolgrowers.
Recent Product Developments
MerinoActive
Partner: Haitian Textile group (China) products
Product: A blended Merino / polyester fleece aimed at the outdoor clothing market
Properties: Thinner and lighter, but equally warm as competitive fleeces
Result: Haitian is very pleased with the product developed and is looking to Merino to give it a competitive advantage over rivals. A second product is under development between AWI and Haitian.