Sphinx, OWA: Two rug brands, one company
Mike Riley remains in charge of the Sphinx brand, and Steve Stultz remains in charge of rugs from Oriental Weavers USA.
By Lissa Wyman -- Furniture Today, February 29, 2004
DALTON, Ga. — DALTON, Ga. — The mostly invisible line that separated the products and personnel of Oriental Weavers USA and Sphinx by Oriental Weavers has been erased.
That's the first and most obvious change at Oriental Weavers market showrooms since the Egypt-based parent company announced the merger of its two American divisions last fall.
Not so obvious are the ongoing, behind-the-scenes adjustments that will make the once-separate companies a cohesive entity.
"There are still two distinct brands — Sphinx and OWA — but both brands will now rely on the same manufacturing, distribution and back-office resources," said Mike Riley, executive vice president of Sphinx.
Riley remains in charge of the Sphinx brand, and Steve Stultz, senior vice president, will remain in charge of OWA. Field sales will be handled largely by account specialists for OWA and on a geographic basis for Sphinx. The sales force will sell both brands.
The goal is to service the entire spectrum of retail channels with the efficiencies of one operational system.
"The mission is to offer the most products from one company, and make those products viable for each market sector," said Stultz.
The consolidation hasn't been completely painless, both Riley and Stultz admit.
"In the long run, however, we feel the changes will be worthwhile in terms of growth for both the company and the employees," said Stultz. "There understandably has been a little confusion in the marketplace, but overall the reaction to the consolidation has been favorable."
Targeting differend channels
"The OWA brand will be geared 100% to big boxes and major chain stores, while the Sphinx brand is aimed at department stores and independent furniture, floor covering and rug stores," Riley said.
Both brands will share all the resources available from parent Oriental Weavers Group, which has facilities worldwide.
OWA's products will continue to be manufactured domestically. Sphinx products will be made in Egypt, China, India and the United States. Both brands will be distributed and serviced from Oriental Weavers facilities in Dalton.
"Offshore sourcing has cost advantages, but domestic manufacturing has service advantages," said Riley. "With four distribution centers, and a 96% fill rate, we can fulfill our commitments in terms of both stocking and delivery."
The game is service, but it's also marketing and merchandising, he said. "The bottom line is, we've just got to be better than the competition."
"Between the two brands, we introduced 17 collections (this winter) with price points from $49 to $1,000," said Stultz. "That's a lot to keep track of."
In the future, much of the product development for the U.S. brands will be handled in the United States. The corporate team is led by Yasmine Khamis, who is research and development manager for the Oriental Weavers Group in Cairo, Egypt. Riley and Stultz will play a role in new product selection.
Last year, Oriental Weavers opened one of the largest showrooms at 295 Fifth Avenue in New York. Does that mean the company will be developing home textiles products?
Company executives are mum on the subject. "It's a possible option down the road," said Riley. "We continue to look at new areas for development."
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