IGNORING the demands of your customers would be catastrophic for Merino wool, according to Australian Wool Innovation director Ken Boundy.
Mr Boundy, who is one of five incumbent directors seeking re-election to the AWI board, said the demand from customers that Australia cease surgical mulesing underpins the company's strategic marketing plan.
He said the AWI's strategy plan based on business-to-business was one of the best global plans he had seen in 25 years.
Mr Boundy's support for the B2B plan is in contrast to the International Wool Textile Organisation-sponsored 2006 Test Marketing Program being advocated by UK processor and rival candidate Laurence Modiano.
The TMP was a targeted program, funded mostly by Australia, which attempted to assess generic wool promotion for two US retailers - Saks Fifth Avenue and Dillards.
"I agree with Mr Modiano that the retailer education component of the TMP was very effective," Mr Boundy said.
"However no one can justify spending more than US$7 million on a six to eight-week promotion with two retailers, which was effectively a discounting exercise.
"We need to lift the price of wool, and the best way to do this is creating demand at the top end, through partnerships with the people who drive the fashion industry," he said.
Mr Boundy said he experienced the value of B2B promotions when he headed Australia's Tourism Commission from 2001 to 2004.
"We were able to leverage $30 million from both Qantas and American Express in the promotion of Australia, and that's what AWI wool programs were all about," he said
"As a general observation, I find it hard to believe that certain wool growers think that the enemy is each other, instead of synthetics and cotton.
"Their behaviour is unhelpful to the silent majority of wool growers who continue to efficiently produce an iconic fibre.
"In regard to mulesing, the debate really gets back to the marketplace.
"Individual growers will be able to make up their own minds about mulesing and the adoption of alternatives, but it will be the market place that determines how we need to respond to meet the needs of those who drive the fashion industry."
