‘RED BAND’ and ‘PURELANA’ a Hit in China

MEDIA RELEASE

22 November 2010

WSI’s ‘RED BAND’ and ‘PURELANA’ a Hit in China as Wool Values Reach New Levels

New Zealand Wool Services International’s pre-eminence in the important Chinese strong wool market has been strengthened by its RED BAND and PURELANA marketing and branding campaign and has significantly contributed to keeping New Zealand strong wools at the forefront of that vital market, which bodes well for the future of New Zealand wool growers.

WSI Managing Director Michael Dwyer said the resurgence of wool prices has been a boost for growers who, with prices at a new base level, could now look forward to a far more sustainable income from wool.

“As New Zealand’s largest wool exporter and merchant scourer, we are very proud of our role in the wool industry and our contribution through our branding campaigns which have added momentum to lifting wool values. WSI has a strong market presence much of which can be attributed to the strength of our long term relationships with international buyers – particularly in China – and marketing initiatives such as the RED BAND and PURELANA campaigns bearing fruit.

“Buyers know that scoured wool bales from WSI carrying these brands carries assurances that the product meets high quality standards, and only virgin wool enhanced by the world's most modern wool scouring processes goes into our branded bales”, said Mr Dwyer.

Chinese manufacturing giant Xinjiang Golden Sun Textiles Co Ltd, a major international buyer of scoured wool, has been particularly struck by RED BAND wool’s quality and practicality according to President Chu Xiaofeng.

“Regarding the red band in your packages of wool, we have already taken it as a unique symbol of the scoured wool from New Zealand Wool Services International Ltd. It has been very well accepted by our technical staff and machine operators for stable deliveries and reliable processing properties and easy storage.

“Red band has been widely accepted in our market and is considered as a very successful brand. So it is obvious that red band products are very well welcomed in our market”, said Mr Chu.

But Mr Chu also pointed out the danger should other exporters try to emulate RED BAND in the Chinese market.

“We don't want to imagine the chaos it is going to create in this already established market if every New Zealand exporter starts to use red band in all packages. If it is so, New Zealand will lose a successful brand. New Zealand scoured wool will lose its foot in this market again. And we believe it will bring chaos and trouble to Chinese market as well”, said Mr Chu.

Michael Dwyer said WSI had every intention of maintaining a strong presence in China and other international markets, and buyers could continue to rely on RED BAND and PURELANA wools.

“We’ve been working hard on brand marketing internationally for seven years and it’s really paying off. Buyers know that the RED BAND and PURELANA brands mean compliance, consistency, repeatability and traceability – and they have come to rely on our product. It’s great for the New Zealand strong wool industry”, said Mr Dwyer.

New Zealand Wool Services, who export 45 percent of New Zealand strong wool, is in the process of securing the trademark for both RED BAND and PURELANA.

ENDS

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