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 the 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 Australia-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 about 130 km north-west of Melbourne, best known as Australia's last coloured wool-spinning mill. With a 65-year history, it operates as part mill and part branded goods retailer — a rare surviving example of local wool spinning in the Australian textiles sector.
Creswick survived by moving upmarket rather than trying to compete on price. The company focused on high-value natural fibres (alpaca, 100% merino, cashmere and cotton), developed a luxury consumer product range, and expanded its retail and wholesale channels to capture customers willing to pay for quality.
Creswick’s mainstay is a luxury consumer product range, while roughly 30% of its materials are still woven at the mill. It operates wholesale relationships — including being a major supplier of blankets and throws to David Jones — and runs five retail shops in Victoria plus an online store.
No. While the mill still weaves about 30% of materials, Creswick imports cotton and cashmere and outsources manufacturing for some items. The company is pragmatic about using overseas inputs where it makes business sense.
Paul Ryzowy, a refugee from Poland, bought land in rural Victoria and built the mill. He ran the business from 1947 until the early 2000s and remained active into his mid-90s. His tenacity and strategic choices — especially the shift toward higher-value fibres — are credited with the company’s long-term survival.
Since taking over in 2002, Boaz Herszfeld has reduced local manufacturing capacity while increasing Creswick’s retail presence. He says the strategy has worked: he estimates revenues have roughly tripled over the past decade.
Creswick has navigated major challenges including the removal of tariff protections in the mid-1980s, consolidation by large textile conglomerates, and the arrival of low-cost imports from countries such as India and China that undercut many Australian mills.
Creswick’s focus on quality natural fibres and branded retail shows one viable way for a small local manufacturer to survive global cost pressures: differentiate on product value rather than price, diversify into wholesale and retail channels, and be open to selective importing and outsourcing.
Call 1300 880 160
Start a chat
Schedule a call
