Shaw gaining in mass market
By Lissa Wyman -- Furniture Today, March 21, 2004
DALTON, Ga. — DALTON, Ga.— Major rug and home textiles producer Shaw Living is putting its mass-market game plan into action with the goal of becoming the No. 1 or No. 2 resource in that channel.
"We've made a lot of progress in woven room-size rugs," said Jeff Meadows, vice president of the Shaw Living Division of Shaw Inds. "Now we want to become a major source for bath and accent rugs as well."
Shaw Living is developing new products in both rugs and textiles categories that will be aimed at mass-market stores, he said.
That means not only chains such as Kmart, Target and the linen stores, but also the big, multi-market furniture stores.
"One of the major furniture chains bought the Mary Kate & Ashley line right away," Meadows said.
For the New York Home Textiles Market, March 26-31, Shaw will unveil a 7,000-square-foot showroom in the 295 Fifth Ave. building, its first space to show both rugs and home textiles.
When the Shaw Living brand was unveiled this past fall in New York, Meadows said the company projected total Shaw Living sales of $300 million by the end of 2005.
"Today, about 30% of Shaw Rugs sales are in the home textiles, mass market and department store retail channels. In the next few years, we expect those channels to be 70% of our business," he said.
Meadows outlined the four-pronged marketing plan that will help Shaw Living penetrate the mass-market distribution channel.
The Mary-Kate and Ashley girl's rug line was a big success when it was introduced at the winter Atlanta rug market, the major venue for rug specialists.
Meadows predicted the products will be an even bigger hit at the upcoming home textiles market.
Mary-Kate and Ashley Olsen are the whiz kids of the teen licensing business. Products that bear the twins' names reportedly reached $1.3 billion in sales in 2003.
"Mary-Kate and Ashley is the No. 1 brand for the girl and teen market," Meadows said. "So the potential for our products is awesome, whether we are discussing scatter rugs or large rugs. There's also a big opportunity to de-velop related items such as throws and decorative pillows."
He said Shaw Living's Mary Kate & Ashley products will be in stores this fall.
Shaw has developed a self-liquidating merchandising program aimed at high-traffic stores. The Ultra Shag merchandiser is a freestanding box stocked with sixteen 5' by 8' nylon shag rugs in eye-catching colors. Consumers just help themselves at the point of purchase. The rugs will retail for $199 to $249.
Product diversification
Meadows said Shaw Living probably will diversify its line via acquisitions. He declined to discuss specifics other than to say a major announcement is likely this year.
Shaw's drive to broaden distribution to mass-market stores began last year with the purchase of Georgia Tufters and the subsequent change of its rug division name to Shaw Living.
"The new name was chosen because it encompasses more than rugs," Meadows said. "In 2004, we will develop new product categories for the Shaw Living brand."
Shaw is known principally as a domestic manufacturer, although some rugs, most notably from the Tommy Bahama line, are hand-tufted in Asia.
In the future, Shaw Living may further expand its overseas sourcing for rugs and textiles products.
"Many mass-market retailers want the price advantages of direct overseas sourcing, but they also want the advantages of dealing with large, home-based vendors," Meadows said.
"We are exploring way to service both those needs."
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