natural fibre solutions from source to shop felicity mcdonald the merino company (tmc) a unique...
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Natural Fibre Solutions from Source to Shop
FELICITY MCDONALD
THE MERINO COMPANY (TMC)A UNIQUE BUSINESS MODEL,
PROVIDING WOOLGROWERS STABLE AND SUSTAINABLE RETURNS
Natural Fibre Solutions from Source to Shop
THE MERINO COMPANY (TMC)
TMC Pools Products (Manufacturing)
Sales & Marketing Solutions
Customer
Providing differentiated and targeted natural fibre solutions from Source to Shop for leading retailers and brands globally.
Our Ultimate Aim: to provide stable and sustainable returns to woolgrowers.
Natural Fibre Solutions from Source to Shop
VOLATILE ‘COMMODITY’ BUSINESS ENVIRONMENT• More than 40 years of declining prices in boom and bust cycles
• Declining wool production - down >60% since 1990• A new business model was needed…
Natural Fibre Solutions from Source to Shop
SIGNIFICANT CHALLENGES FOR WOOL
wool price = customers exit or substitute fibres
wool price = decrease in production
TOUGH BUSINESS CONDITIONS ADVERSARIAL STRUCTURE / COMMODITY TRANSACTIONS
HIGH VOLATILITY & COMPETITION
• Wools share of apparel market declining - a large fibre switch occurring
• Increased pressure on manufactures to reduce cost (globalisation)
• Traditional system – wool pushed to customers with little value
• Customers dictate play
• Producers are ‘Price Takers’
Natural Fibre Solutions from Source to Shop
THE AUCTION SYSTEM• a single option for woolgrowers at a point in time
• multiple buyers ‘on-the-floor’
• limited involvement beyond auction
THE TRADITIONAL SYSTEM – SUPPLY DRIVEN
THE SUPPLY CHAIN•disconnected trading relationships at each link
•information and timing flows slowly down the supply chain from wholesaler / retailer regarding their future needs
•no transparency at each stage of the supply chain, final use or for the final user
Natural Fibre Solutions from Source to Shop
THE TMC BUSINESS MODEL
TMC Pools
Greasy Wool
Tops
Yarn
Sales & Marketing Solutions
Fabric
Garment / Product
Customer
Customer focused approach Supply Chain Management CommunicationMarketing Services Innovation Transparency
A competitive advantage generating real opportunities for wool
Natural Fibre Solutions from Source to Shop
THE TMC POOL SYSTEMThe Pool system enables TMC to provide price stability and supply security to both
growers and customers.
• Managing greasy wool through to yarn for Pool Participants
• Enable TMC to provide retailers & brands
• Specific quality• Specific quantity• Differentiation • Certifications• Traceability
Natural Fibre Solutions from Source to Shop
STRATEGIC PROCESSING & SALES
TMC is committed to growing (differentiated) ‘pull-through’ from the Pools, by increasing strategic-alliance processing capacity and sales capability
CONNECTING the value chains …
Natural Fibre Solutions from Source to Shop
CUSTOMER DRIVEN MARKET DEMAND
• TMC’s unique relationship at both ends of the supply chain enables an unparalleled flow of information
• TMC discovers customers needs and feeds this information back to wool growers creating a pull through system
Natural Fibre Solutions from Source to Shop
CURRENT CONSUMER TRENDS AND MARKET OPPORTUNITIES
• Burgeoning demand for environmentally friendly products
• “Green” is now mainstream• The Sustainable Revolution - Global
apparel industry is embracing sustainability
• Value, high quality natural products over fast fashion
• Transparency and traceability in both food and fashion
Natural Fibre Solutions from Source to Shop
TMC RESPONDING TO DEMANDTMC has developed differentiated brand platforms in line with these current trends
and opportunities, providing value added wool solutions to customers
Natural Fibre Solutions from Source to Shop
TMC – A POSTIVE OUTLOOK FOR WOOL
• Surviving the fall in wool demand by meeting customers’ needs.
• Significant uptake in customer enquiry
• Solid growth in brand partners
• Significantly increased global capabilities and facilities
• Impressive year-on-year growth in pool participants