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Saks Fifth Avenue garment sales increase under TMP

May '07
The results of the Test Marketing Project (TMP) have been announced at the 76th Congress of the International Wool Textile Organisation (IWTO) in Edinburgh, UK.

The TMP was a collaborative project between Australian Wool Innovation (AWI), IWTO and Australian Wool Services (AWS). The three organisations joined forces in October 2005, contributing $US6.6 million in funding and resources for the project to identify manufacturers, retailers and end consumers who will stimulate demand for fine wool apparel.

Two North American retailers were selected to trial the program; Saks Fifth Avenue and Dillards. The industry funds were used for product marketing with the addition of in-store education programs for customers and sales staff.

IWTO President, Michael Lempriere said the aim of the TMP was to test the degree to which consumer marketing can have a measurable, positive impact on wool sales; and this has been achieved.

“In terms of dollar value of the garments sold, there was between 8 and 12 per cent increase at Saks Fifth Avenue, and between 6 and 7.5 per cent increase at Dillards,” said Mr Lempriere.

“Perhaps the most positive result was the leveraging of funds, with Saks creating media value of over $US7million, from a contribution of $US1.5million.

“Dillards leveraged the $US1.5million contributed by the TMP to create a media value of over $US4.6million.”

AWI Deputy Chairman, Brian van Rooyen said these resultsshow what can be achieved by building good working relationships with key partners in the market.

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