Wools of New Zealand celebrates multi-million, multi-container Chinese deal

Thursday, 19 June 2025

Saibosi is an award-winning rug maker and has sold the most high-end rugs in China in the last five years consecutively.

Wools of New Zealand is celebrating its latest success in getting New Zealand wool close to consumers ‒ a multimillion--dollar deal with a Chinese fine wool rug maker.

Shanghai-based Saibosi ‒ an online business that has ranked first in premium wool rug sales to Chinese consumers for five consecutive years ‒ has signed a strategic brand partnership agreement with Wools of New Zealand to use Kiwi wool, and the New Zealand wool label, on some of their products.

Saibosi is a premium rug maker in China that wants to use NZ wool and the WoolsNZ brand.

The quantum of money being made by wool farmers through the deal, as well as the specific amount of wool being shipped to China as a result, is commercially sensitive, Wools of New Zealand chief executive John McWhirter told The Post, but it was “many millions, and many containers” worth.

McWhirter explained that through its representative in China, Wools of New Zealand started engaging with Saibosi, which wanted to use high quality Kiwi wool and the brand in its rugs, leading to a commercial relationship being formed.

“We've taken them through a process so they understand the different types of wool and the different values of wool, and they recognise that putting in better wool and paying more for it is actually the right way to go,” McWhirter said.

Saibosi execs on the farm, being shown the ropes by New Zealand wool industry execs.

“They've been down in New Zealand and we’ve taken them on visits around South Island farms ‒ they’ve been out at shearing sheds, looking at the [processing] of wool and all sorts of things, and taking lots of video and photographs to use in their marketing for their online business.

“We’ve also taken part in their broadcasts, which typically have around 10,000 views each.”

Selling the brand

Saibosi co-founder Alvin Zhang signs the deal with Richard Young, the chairperson of Wools of New Zealand.

It is not the first time Wools of New Zealand has done a deal for the WoolsNZ trademark to be used offshore, nor even the first time the organisation has done a deal in China. It has an extensive trade partner network internationally and last year signed a deal with Chinese rug and carpet manufacturer Yangxin Ruixin Group to use WoolsNZ branding on the latter’s products.

Farmer-owned Wools of New Zealand is a sales and marketing company responsible for bringing the wool produced by producers to the national and international market. It is a successor to the Wool Board, which was disestablished in 2003. While an alternate “single desk” failed to fire for several years, once Wools of New Zealand and Primary Wool Co-operative-owned CP Wool merged in 2021, a new goal, aimed at convincing consumers of the merits of wool, was set.

But the Wool Board had successfully established the WoolsNZ brand in China all those years ago, and older Chinese consumers still remembered it. McWhirter said it was important to pick up that thread once more, with people who still remembered it as a mark of a premium product.

The chief executive came aboard with the task of strengthening the consumer connection to the WoolsNZ brand, having formerly served as chief executive of Hellers.

“We now invest in things that we ensure are just one step removed at most from the consumer, and ensure our retailers also understand the brand and can transmit the messages about the quality of New Zealand wool to the consumer.”

Wools of New Zealand chief executive John McWhirter with a commercial wool tile.

Wool status update

Though wool seemed to be out of favour with consumers and attracting very low prices for several years, a few developments of late suggest the sector’s fortunes are at least heading in the right direction.

In April, Government agencies were directed to use wool in the construction and refurbishment of their buildings 'where practical and appropriate'.

Prior to that, Wools of New Zealand launched an international online marketplace on which sheep farmers are now able to sell their wool to international buyers.

Wool prices rising in the last year or so has caused optimism, while Wools of New Zealand returned to profitability itself, with a modest $165,000 profit in the financial year, compared with a $1.4 million loss the year prior.

“Covid was the worst, when wool prices dropped to about $1.50-$1.80 a kilogram, and since then, they have actually been growing ‒ this year we're seeing wool prices selling in the $3-$4 range. So it's certainly doubled from the Covid period,” McWhirter said.

“Farmers may still not be that excited by that because their costs have gone up, but prices will continue to rise … for one reason because the supply of wool is reducing, so the supply demand curve of economics kicks in and price rises as demand as supply falls.”

Demand will rise, he said, because of the amount of effort going into finding ways to reach the consumer.

“Wools of New Zealand do not see ourselves as traders ‒ we’re investing in brands and products aimed at consumers. If you're not investing in products that are consumer-facing, then by definition, the industry will slide back, because consumers don't actually understand what the buying, they’re just listening to one side over the other when it comes to wool over plastic, merino over poly propylene, or plastic over wool carpet.

“Quite simple, but that’s the logic behind it.”