Last word when it comes to spinning a yarn
The company boasts Australia's last wool-spinning mill, a throwback to when the country rode on the sheep's back. While the mill still operates profitably, evolution has been in play.
The company, situated 130 kilometres north-west of Melbourne, was once one of hundreds of wool spinners in postwar Australia. It is now part mill, part purveyor of quality branded goods, with a strong retail presence in Victoria.
Herszfeld puts the company's survival down to the tenacity of his late grandfather Paul Ryzowy, a refugee from Poland, who was in charge of the business from 1947 until early this century.
Ryzowy was said to have escaped Russia by walking 300 kilometres across the country in the dead of winter, before stowing away in a ship and spending time in Japan, China and New York. He and a mate eventually bought four hectares in rural Victoria and built the mill. He remained active until his mid-90s.
Having survived a war and the challenges of being a new immigrant, Ryzowy also had to contend with subsequent economic changes - the dismantling of tariff protections in the mid-1980s and the rise of textile conglomerates that were gobbling up smaller mills about the same time.
Arguably more difficult than all of these challenges has been the arrival of cheap imports that have all but destroyed the business in Australia.
While Creswick is the only coloured woollen spinning mill left, there are three other mills that still make carpet yarn.
"While he had reservations about making big changes, my grandfather understood implicitly that India and China would be able to produce products with their low-cost wages and raw materials," Herszfeld says.
"The only way to win was to increase the value of the raw material, not cheapen it. We went for alpaca fleece, 100 per cent merino wool, cashmere and cotton because we knew that a large proportion of society still hungered for quality natural fibre products."
Herszfeld believes Ryzowy's decision to stay upmarket saved it from annihilation.
"While everybody went one way - we went the other. Australian mills couldn't compete with cheap imports and one by one they closed down. It left a niche for a high-quality player and many people were getting sick of synthetics. We filled that gap."
Creswick's development of a luxury consumer product range is now its mainstay, but it has not lost its original function - about 30 per cent of materials are still woven at the mill. All the same, it has adapted. It acts as a wholesaler to other companies (it is David Jones' biggest supplier of blankets and throws) and a retailer (it has five shops in Victoria and an online shopping portal). It is not precious about everything being Australian-made or derived. It imports materials - cotton and cashmere goods - and outsources manufacturing of other items.
Herszfeld admits that since taking over in 2002, the general trend has been to decrease local manufacturing capacity and to step up its retailing presence. The changeover seems to have worked. He estimates a tripling of revenues over the past decade.
Frequently Asked Questions about this Article…
Creswick Woollen Mills is a family‑owned textile business with about a 65‑year history, located roughly 130 km north‑west of Melbourne. It's notable as Australia's last coloured wool‑spinning mill and a throwback to the era when the country relied heavily on wool. Today it operates as part mill, part maker of branded luxury goods with a strong retail presence in Victoria.
According to the article, Creswick survived by moving upmarket rather than competing on price. The company focused on higher‑value natural fibres — alpaca, 100% merino, cashmere and quality cotton — and developed a luxury consumer product range that filled a niche as consumers grew tired of synthetics.
Creswick weathered several major changes, including the mid‑1980s dismantling of tariff protections and the rise of large textile conglomerates that bought smaller mills. The arrival of low‑cost imports from countries such as India and China posed another significant challenge to local mills.
The article says about 30% of Creswick’s materials are still woven at the mill. The company also imports some materials (for example cotton and cashmere goods) and outsources the manufacture of other items.
Creswick has developed a luxury consumer product range and sells through multiple channels: it is a wholesaler (notably David Jones' biggest supplier of blankets and throws), operates five physical shops in Victoria and runs an online shopping portal.
Yes. Since Boaz Herszfeld took over in 2002 the company has generally reduced local manufacturing capacity and increased its retailing presence. Herszfeld estimates revenues have roughly tripled over the past decade, suggesting the shift has worked for them.
Creswick is described as the last coloured wool‑spinning mill in Australia. The article notes there are still three other Australian mills that produce carpet yarn, but coloured wool spinning like Creswick's is unique.
The article highlights clear lessons: companies that can differentiate by focusing on higher‑value products and niche markets may withstand low‑cost competition; diversifying sales channels (wholesale, retail and online) can stabilize revenues; and adapting operations over time — even if it means outsourcing or importing some inputs — can be a pragmatic way to preserve core capabilities and grow the business.
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