Client Solution: Macquarie Yarn Solution

A hosiery manufacturer audited their business to find that, while they had reasonable turnover, their profitability was almost non existent mainly due to cheap low priced products. Whilst selling 10 hosiery sock pairs for $5.00 creates production activity and cost, little is left in the bank after paying for material, labour and overheads.

What this hosiery manufacturer needed to generate profitable sales activity was a 'point-of-difference' sock product that, while attracting consumer interest, would also command a price premium generating sustainable margins.

This hosiery solution was to be targeted at physically active customers who were regular participants in organised sport or less fitness orientated activities, such as walking or running, which demanded a high performing sock. The wide geographic nature of this global target market made the performance requirements and specifications for the solution very challenging. The solution needed to be soft and comfortable, provide cushioning when in contact with the ground, manage moisture, and offer warmth in cold environments and cooling in warm environments.

The hosiery manufacturer identified Macquarie as the partner of choice in providing the hosiery solution they required. The challenge now lay with Macquarie to design and manufacture a Yarn-based textile solution that could become a premium hosiery product capable of achieving not just performance, technical and quality requirements, but also the business goals driving their client.

Wool fibre with its well documented performance and quality characteristics was seen as being able to fulfill this difficult task. This led Macquarie to design and develop a unique fibre specification which then evolved into a highly advanced yarn with an ideal composition and twist that would not just meet but exceed the various performance, technical and quality requirements that the client put forward.

Finally, the yarn had to be trialed on the client's particular knitting equipment and processing standards ensuring its compatibility and facilitating its development into the final product.

Wool fibre became the point of difference they were looking for, making the client's hosiery sock product stand out in the market place. Today, this hosiery sock is available under various brand names and in a range of rich and vibrant colours. In essence, when stripped back to its raw state, the hosiery sock is basically one yarn being presented as a premium finished product, which nevertheless commands a price point that is profitable to both the Hosiery manufacturer and retailer whilst offering sufficient value for money to be attractive to consumers.