NZ wool relaunch 'big issue'

Iain Abercrombie confesses to underestimating the size of the challenge he faced when appointed chief executive of Wool Partners International (WPI), a new body charged with resurrecting the fortunes of the wool industry.

It would be hard to find a more difficult job than resurrecting the once proud, profitable export fibre industry that in recent years has been neglected while a generation of retailers and consumers grow up knowing little about its merits.

Mr Abercrombie has endured a range of emotions since taking on the WPI position, from being overawed in the first few weeks at the job in front of him, to feeling much more confident after visiting carpet manufacturers and retailers in the United States.

Any confidence was tempered by the task he faced of uniting growers, creating a co-operative, creating demand for wool and educating retailers and consumers about its merits.

Asked about what role, if any, existing brokers and exporters have, Mr Abercrombie said his focus had been on learning and understanding how the international market functioned and the opportunities there for wool.

He had not had time to meet existing exporters and brokers, but had heard their criticism, which he attributed to the threat WPI posed to their business.

"It could cut across their goal of driving wool prices down."

Mr Abercrombie brings to the job an international business career with a background in sales and marketing.

This has given him an understanding of product branding and brand differentiation.

While he returned from the US optimistic about the potential for New Zealand wool, he was also aware of the strength of the competition.

Synthetic carpet makers have 97% of the US market, earned through massive promotion and education, but importantly by tapping into environmental concerns.

Wool growers may think they produce a clean, green product, but Mr Abercrombie said retailers and commercial consumers did not see it that way, with woollen carpets falling short on a life-cycle measurement.

Synthetic carpet sold for commercial buildings met green-credit standards and surpassed woollen carpet because it could be recycled, and did not generate greenhouse gases in the making, as sheep did.

"It's a big issue and will become more of an issue as sustainability and recycling are very strong topics in the US, probably more advanced than anywhere outside Europe."

Synthetic carpet manufacturers and retailers would remove old carpet and it would be shredded and used as backing for new carpet, or in plastic piping.

Despite the concerns, Mr Abercrombie said the residential market viewed wool as a natural, renewable resource, and recycling and animal welfare issues were not seen as an obstacle.

New Zealand's clean and green image was seen favourably by the residential market and there was a move in the US towards renewable resources and away from a dependence on oil.

"If we can come up with a clever way to recycle woollen carpets, that creates another opportunity."

Match that with the New Zealand clean and green story, that wool was renewable, and he said the stars were coming into alignment for wool.

An ingredient brand, identifying wool that met quality standards, would be created to confirm New Zealand's reputation as the source of the world's best carpet wool.

"It was a key message for us. I had gone over with a great fear I would get there and be told there was nothing special about New Zealand wool."

The Fernmark brand would still have a role, but Mr Abercrombie said it had lost some of its gloss because some processors were using it who were not up to an acceptable standard.

"We feel the Fernmark has been devalued."

WPI saw its strategy as educating retailers and consumers but Mr Abercrombie said wool had an advantage.

Although woollen carpets only occupied 2% to 3% of the market, they tended to be in the homes of the most affluent.

Most of those people employed interior designers to make decisions about floor coverings and Mr Abercrombie said that narrowed down the target audience.

Synthetic carpet manufacturers had heavily promoted their products in design schools, something the wool industry intended emulating to promote its products.

The US was the first market WPI would tackle, as it had several large carpet manufacturers that could influence retailers.

Europe and New Zealand would be the next focus.

Mr Abercrombie said the time was right for woollen carpets.

"If we can tell the right story in the right way to the right people, the chances are very strong that we will increase demand for New Zealand wool, which will also help the price."

Iain Abercrombie

Age: 50.

Born: Auckland.

Education and qualifications: Otago and Auckland University, BSc, BCom.

Married with a son and daughter.

Career:

• New product development manager, McCormick Foods UK, 1988-91.

• Marketing manager, Lion Breweries, 1991-93.

• General manager, All Blacks Club, 1994-95.

• General manager, Lion Nathan International, 1996-97.

• Regional director, Lion Breweries, 1997-2000.

• Managing director, Maxxium NZ Ltd, 2000-03.

• President, Maxxium Canada, 2003-06.

• Managing director, Maxxium Australia, 2006-07.

• Ceo Wool Partners International, 2008.

Interests: fly fishing, golf, sailing, rugby, snowboarding, cooking.