LICENSE LEGEND: NEW MARKETS FOR COTTON IN MEDICINE

WHAT
• $10.3: million The value of U.S. cotton in China-based Winner Medical Group’s products

HOW
• CCI and Cotton Incorporated provided technical support to develop these new products


THE SUBSTANCE

INDUSTRY GROWTH
Cotton Council International (CCI) and China-based Winner Medical Group have joined forces to expand an industry through development and marketing. The non-woven industry is an important new product category in emerging consumer markets and includes cotton medical gauze, baby wipes and women’s cosmetic products.

BIG BUSINESS
In 2011, Winner Medical used about 45,900 bales of cotton, 30% of which was U.S. cotton, valued at $10.3 million, to produce a range of new medical and consumer hygiene products made of spun-lace non-woven fabric. The products are 100% cotton, and some are 100% U.S. cotton. All products prominently display Cotton Incorporated’s Seal of Cotton.

TAG THAT
The consumer and medical supply products will be marketed under the trademark PurCotton® and jointly labeled with Cotton Incorporated and COTTON USA’s trademarks. The joint labeling will provide brand credibility for Winner Medical and put the COTTON USA Mark in every consumer’s home. Winner Medical joined CCI’s COTTON USA licensing program in March 2011.

CREATING DEMAND
Improving U.S. cotton users’ efficiency and profitability and reducing their environmental footprint have been critical to pushing U.S. cotton through the supply chain. CCI has partnered with Cotton Incorporated to provide technical solutions at the spinning weaving, knitting, dyeing and cut and sew stages of the supply chain, effectively increasing cotton demand and giving U.S. cotton a competitive advantage on the international market. CCI, jointly with Cotton Incorporated, provided technical support to Winner Medical to develop these new products.

PERCEIVED VALUE
The partnership with Winner Medical is one of a number of joint marketing campaigns with Chinese partners. Marketing to both the trade and consumers integral in creating market recognition of the superior characteristics of U.S. cotton helps shift the demand curve. These activities pull cotton through the supply chain by both increasing the quantity demanded of cotton—particularly U.S. cotton—and helping U.S. cotton to sell at higher price points. China’s total cotton imports were about 23.25 million bales, which represent a year-on-year increase of 94.07 percent. In 2011, U.S. cotton represented about 32 percent of China’s total cotton imports.

“Cotton Council International (CCI) and China-based Winner Medical Group have joined forces to expand an industry through development and marketing.”