Global demand for both wool and cotton is expected to decline over 2011/12 due to adverse economic conditions across US, Europe and Japan, which account for a large portion of global apparel consumption.
Adverse economic conditions in these countries and regions has depressed consumer demand and discretionary spending on cotton and woollen clothing items. However, Australian cotton exports are expected to spike in 2011/12 compared to declining wool exports.
This is due to a number of factors including increased production; competitive pricing, which makes it a good substitute for wool and; woollen apparel is more discretionary than cotton.
IBISWorld forecasts that the value of Australian cotton exports will rise 82.2 per cent in 2011/12 to reach $2.63 billion, but decline by 12.5 per cent in 2012/13 to reach $2.3 billion. The value of Australian wool exports is expected to decline 3.7 per cent in 2011/13 to reach $3.1 billion and again by 12.9 per cent in 2012/13 to reach $2.7 billion.
The value of Australian cotton exports is expected to decline because of falling prices in other cotton-producing markets. In fact, the global demand for cotton and wool generally is expected to grow in 2012/13 due to expected improvement in economic conditions in major apparel markets such as the US and Europe.
Income and population growth in developing markets such as China and India will also play a role, as well as ongoing global economic recovery. Global demand for cotton is likely to outstrip the demand for wool due to declining and more competitive cotton prices compared to wool prices, making cotton a viable substitute in textile manufacturing.
Wool is a more discretionary product because it costs more, thus consumers are more likely to purchase cheaper clothing made from cotton. Despite an improvement in major apparel markets such as the US and Europe, consumer sentiment and discretionary spending on clohtes is likely to remain weak, which gives cotton that competitive edge.
Declining and more competitive cotton prices compared to wool prices makes cotton a viable substitute in textile manufacturing. The weak demand for woollen apparel from US and European cosnumers is likely to lower demand from Chinese mills, however domestic demand for wool in China will support global demand for wool to some extent.
The ongoing rise in incomes across China means that consumers are likely to increase demand for expensive woollen apparel.
The International Woolmark Prize
The International Woolmark Prize will be presented in London in February 2013. Over 70 nominees were initially selected by a global panel of industry nominating bodies, with finalists including Sophie Theallet (USA), Christian Wijnants (Belgium), Ban Xiao Xiu (China), Dion Lee (Australia) and Pankaj and Nidhi (India).
Since launching his label in 2008, Dion Lee has won several major accolades Australia has to offer including the Qantas Spirit of Youth Award and the L’Oréal Melbourne Fashion Festival Designer Award.
Christian Wijnants is a 34-year old designer based in Antwerp, Belgium. After graduating in 2000 from the Royal Academy of Fine Arts in Antwerp, he went on to win the Grand Prix at Festival de Hyères in France. Following this he started selling his collections in-store at Colette in Paris, Pineal Eye in London, Via Bus Stop in Tokyo and Henri Bendel in New York. After working as creative assistant for Dries Van Noten in Antwerp and Angelo Tarlazzi in Paris, he launched his own brand in 2003.
Pankaj & Nidhi launched in 2006 and was honoured with the Elle Style Award for best debutant designer in 2008 and the Elle Style Award for best women’s pret-a-porter in 2009. In 2010 the brand also won first prize at the International Fashion Award at the World Apparel Convention in Hong Kong.
In 2007 Ban Xiao Xue was chosen to attend the China Cutting-Edge Fashion Design Static Exhibition, on behalf of China Fashion Cultural Foundation which was held in Paris. In 2012 Ban Xiao Xue was invited to attend the “Landscape” Fashion Design Show on behalf of EXCEPTION, at London Fashion Week where he also held a static exhibition in the Nunnery Book Gallery in London.
Sophie Theallet launched her eponymous label in 2007. At 18, Theallet moved to Paris to attend the renowned fashion school, Studio Berçot. Upon graduation she was hired by Jean-Paul Gaultier, and later by Azzedine Alaïa.