THE promotion of wool will go online in one of China's biggest marketing campaigns for more than a decade.

The joint venture between Australian Wool Innovation and 35 Chinese Woolmark licensees will use a guerilla marketing, or blog strategy to reach an estimated 15 million people.

AWI chairman Brian van Rooyen said it was a first for the wool industry.

Mr van Rooyen said the campaign, which commenced in mid-October and will run to December 7, was timely given the problems in western economies.

The thrust of the campaign was to promote the Woolmark label for knitwear.

It will focus on six of China's largest cities.

"This is an exciting development involving partnerships with eight department stores and 35 Chinese knitwear brands and Woolmark licensees," Mr van Rooyen said.

He said Woolmark licensees had set a campaign target to lift unit sales by 5 per cent and a 20 per cent increase in store traffic.

Mr van Rooyen said he hoped the campaign would restore the credibility of the Woolmark brand for Chinese licensees as a device which provided differentiation and drove demand.

He said like in the western economies, conventional advertising in China was becoming too expensive.

"China is the perfect place to launch this online approach, particularly given the global economic slow-down and the fears of a recession in western markets," he said.

In the past decade, due to a lack of marketing support, Woolmark licensee numbers in China have fallen each year by 15 per cent, resulting in low consumer awareness of the Woolmark.

"By using a well-known Chinese fashion 'blogger' and other on-line marketing techniques, younger fashion markets will be exposed to the Woolmark," Mr van Rooyen said.

He said initial reports indicated the campaign was already exceeding its targets for on-line visits.

The online component is being driven by a consumer website at www.merinotouch.com.cn

Of the 500 current apparel licensees in China, 60 per cent are in the knitwear business.

Arrangements for the campaign include AWI providing 25 per cent of the funding.