The aim of the program is to create just under 1 million kilograms of new demand over the next three years for Australian Merino wool.

AWI says Japan is a priority strategic market for the growth in demand for Australian wool. It is a sophisticated market which is well represented by a small range of retailers.

Five of the leading retail apparel groups in Japan will join with AWI to promote the Excellence in Australian Merino Wool marketing campaign.

Educating the market is particularly important as the attitudes of young Japanese consumers have become more evident since the mid-1990s, AWI says.

Young consumers who did not experience the past wool marketing campaign in Japan will be made aware of the positive attributes of wool clothing.

"Japan is the second largest wool apparel consuming country in the world after China, with an estimated retail market size of 80 million kilograms of wool," Craig Welsh, AWI chief executive officer, says.

Mr Welsh says there has been an absence of a targeted wool marketing campaign in Japan for more than a decade and Japan has a particularly large influence on global superfine wool demand with its consumer preference for suits.

The retail partners are Isetan, the fourth largest department store for apparel sales in Japan and a market leader in retail fashion; Onward Kashiyama, the largest apparel manufacturer and wholesaler in Japan; Sanyo Shokai, ranked second in national men's wear sales in Japan and sixth in women's; Aoyama Trading, Japan's largest men's wear chain store; and Flandre, a market leader in young women's apparel in Japan.

AWI says the partners were selected on the basis of their influence in the market, reputation for consumer marketing and commitment to increase the volume of wool merchandise during the course of the program.

The program will offer the retailer in-store displays, swing tag branding, advertising advice, training kit for retail staff on Australian Merino wool, in-store events and campaigns, sales staff training, website resources and direct mail advertising.