THE world’s largest vertically integrated wool company Sunshine Mills is poised to open hundreds of retail stores in China to offset flagging export sales.
Australian Wool testing authority’s China liaisons manager, Robert Wang, said the wool giant was confident it could counterbalance reduced demand in its traditional markets, Japan, USA, Europe and South Korea, by targeting its domestic market, which had been buoyed by the Chinese government’s $600 billion stimulus package that had a 10 per cent textile focus.
“The emphasis has clearly changed from an export to a domestic focus,” Mr Wang told Stock & Land after visiting China last month.
“The export market is really struggling throughout China, yet domestic wool sales in China are very good.”
Mr Wang said Sunshine’s chief executive, Xiuming Cao, confirmed there would be no changes to their wool buying and re-enforced that he believed there was “no replacement for Australia wool.
*Extract. Full story Stock & Land, May 21.
