Elders to pitch Just Shorn in United States

GLOBAL PITCH: Catlins farmer Howie Gardner, who is part of a New Zealand pitch for Elders in the United States this week.

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Elders representatives will today be giving a sales pitch they hope will help secure Elders' Just Shorn wool brand with United States retailers.

Elders announced last year via its subsidiary Wool Marketing Enterprises that it would target carpet and rug makers in the US.

But the success of the pitch at the International Design Guild convention won't be known until possible sales orders come in three to four months.

The first step is to convince retailers that there is a niche for its product in carpet manufacturing.

US marketing consultant Karl Johnson (who is working for Elders on the Just Shorn project) said he believed the time was okay to launch the brand, despite a softening in the economy.

People were still willing to pay a premium for premiere products in the States, he said.

However, before potential consumers are swayed, the first step of the launch is to promote Just Shorn to retail executives that belong to the CCA Global Partners Group.

If retailers in the group approve, product samples will be sent to their stores and then the work to educate consumers on the brand will start.

Surveys shows US consumers build trust with a retailer ahead of a brand, Mr Johnson said.

Part of the marketing strategy will be to show retailers the "story" of Just Shorn and the farms in New Zealand that the wool will come from. "In America the `where does it come from' concept is still a novelty and consumers respond to it," he said.

The International Design Guild show is held once a year and more than 900 exhibitors are present, with an estimated 30,000 attendees expected.

Elders has lined up a private meeting with the CCA partners and included in the contingent is Catlins farmer Howie Gardner, Elders export manager Craig Wilson and Elders Primary Wool chairman Stu Chapman.

Mr Chapman said there was a lot of work to do to get prices for wool again back to the premium it used to achieve 15 to 20 years ago.

At present, no Southland farmers are supplying wool for the Just Shorn brand, and future contracts will be dependent on the success of the design guild show and subsequent product samples being sent to retailers.

- © Fairfax NZ News

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