What appears to be an ordinary wool sweater might hold the secret to a brand's dramatic sales growth. Japan's second-largest apparel group, Onward Kashiyama, recently demonstrated this phenomenon through its strategic focus on merino wool knitwear across six of its women's fashion brands.
The Origin Story: An Australian Wool Epiphany
The journey began in 2018 when Australian Wool Innovation (AWI) arranged for two Onward executives to visit merino wool farms in Australia. This eye-opening experience led the company to significantly increase its use of Australian merino wool across its brands. By 2019, Onward partnered with AWI's subsidiary, The Woolmark Company, launching a series of marketing initiatives in the Japanese market.
Strategic Marketing: Precision Targeting Across Channels
For the recent autumn-winter season, the collaboration focused on promoting merino wool knitwear across six Onward women's brands: 23KU, J. Press, BEIGE, ICB, Kumikyoku, and Jiyuku. The campaign's core strategies included:
- Premium Positioning: Establishing merino wool as the natural fiber of choice for high-quality Japanese knitwear, emphasizing its natural comfort, warmth, and alignment with quality lifestyles.
- Quality Certification: Highlighting Woolmark-certified products to leverage the globally recognized quality standard and build consumer trust.
- Digital Focus: Driving traffic to dedicated e-commerce landing pages featuring product information and interactive elements.
- Physical Retail Integration: Implementing in-store displays across 415 retail locations to boost visibility and offline sales.
Remarkable Results: Exceeding Performance Targets
The campaign delivered exceptional outcomes:
- Sales of Woolmark-certified knitwear (95% merino wool/5% cashmere) surpassed targets by 10%.
- The products sold 8% faster than Onward's average product velocity, significantly exceeding the 3% goal.
- E-commerce landing page traffic outperformed expectations by 53%, demonstrating successful digital engagement.
Key Success Factors: Sustainability Meets Digital Transformation
Onward's achievement stems from two strategic priorities:
Sustainability Advantage: Merino wool's natural properties align perfectly with growing consumer demand for eco-conscious products:
- Biodegradable and renewable fiber from free-grazing sheep
- Superior breathability and moisture-wicking capabilities
- Exceptional warmth-to-weight ratio
- Modern processing enables easy machine washing
Digital Acceleration: Onward's emphasis on e-commerce growth, particularly through the Woolmark partnership's digital traffic strategies, has proven crucial in adapting to evolving market conditions.
Executive Perspectives: A Model for Future Collaboration
Daisuke Ochi, Onward Kashiyama executive, noted: "Our continued partnership with The Woolmark Company remains vital as we differentiate through material quality while accelerating our digital transformation."
Samuel Cockedey, AWI Japan manager, added: "The consistent performance across six distinct brands demonstrates merino wool's universal appeal. Onward's plans to expand into outerwear and increase knitwear sales by over 30% next season validate this approach."
Industry Implications: Small Fiber, Big Impact
This case study reveals how fundamental elements create commercial success:
- Premium raw materials establishing product superiority
- Precision marketing across physical and digital channels
- Sustainability as a competitive differentiator
- Digital infrastructure supporting omnichannel growth
The humble merino wool sweater has proven to be far more than a wardrobe staple—it represents a strategic blueprint for modern fashion retail success.