Natural Fibre Solutions from Source to Shop FELICITY MCDONALD THE MERINO COMPANY (TMC) A UNIQUE BUSINESS MODEL, PROVIDING WOOLGROWERS STABLE AND SUSTAINABLE.

Natural Fibre Solutions from Source to Shop

FELICITY MCDONALD

THE MERINO COMPANY (TMC)A UNIQUE BUSINESS MODEL,

PROVIDING WOOLGROWERS STABLE AND SUSTAINABLE RETURNS


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.


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…


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’


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


THE TMC BUSINESS MODEL

TMC Pools

Greasy Wool

Tops

Yarn


Fabric

Garment / Product

Customer

Customer focused approach Supply Chain Management CommunicationMarketing Services Innovation Transparency

A competitive advantage generating real opportunities for wool


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


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 …


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


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


TMC RESPONDING TO DEMANDTMC has developed differentiated brand platforms in line with these current trends

and opportunities, providing value added wool solutions to customers


MARKETING SUPPORT & TRACEABILITY


A TMC CUSTOMER EXAMPLE


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


TMC Pools

Greasy Wool

Tops

Yarn


Fabric

Garment / Product

Customer

TMC - PROVIDING A REAL ALTERNATIVE

Natural Fibre Solutions from Source to Shop FELICITY MCDONALD THE MERINO COMPANY (TMC) A UNIQUE BUSINESS MODEL, PROVIDING WOOLGROWERS STABLE AND SUSTAINABLE.

Documents

wool slide

system slide

wool wool price

tmc pool system

wool production

wool growers

traditional system supply

sustainable returns