Diversification the key to rug success in High Point
Lissa Wyman, Rug editor -- Furniture Today, May 11, 2009
Rug vendors have been leaving High Point in droves. The third floor Design Wing of the International Home Furnishings Center used to be home to about 20 major rug companies. At the latest market, only a handful remained and the former rug corridor has become a center for lighting and decorative accessories.
At Market Square, the first floor now houses three major rug companies. Only a couple years ago, there were big rug exhibitors on both the first and second floor of the old building, plus niche marketers spread throughout the Suites at Market Square.
Meanwhile, at Showplace, rug vendors are still humming. Four vibrant young companies — Surya, Jaipur, Chandra and Rizzy — keep expanding.
So why do a handful of rug companies do well in High Point while others obviously can't make it pay off?
Nearly all the vendors who remain in High Point have become multi-product distributors OR they have made a commitment to the interior design community OR they have specialized merchandising and marketing programs geared specifically to the needs of furniture retailers.
In other words, they are adapting their business to the needs of the customers they want to attract.
These vendors are not content to focus narrowly on a core business of department stores and independent rug and floor covering stores. Those “core” customers don't come to High Point. In fact, a lot of those customers don't go anywhere anymore because they've either gone out of business or they're hanging on by a thread.
In the “good old days,” every American city and town had multiple department stores, several elegant Oriental rug specialists, many scrappy independent floor covering stores, a “fine” furniture store, a couple of “borax” furniture stores and many family-owned gift and home accessories stores.
Now every American city and town has a Wal-Mart, Target, Home Depot, Costco and regional furniture chain.
Whether you think the current state of affairs represents a sad commentary on modern life or a golden opportunity depends on you. The vendors and retailers who embrace change and find new ways to bring fresh products and merchandising techniques to the new marketplace will prosper. The others will be taking a costly one-way trip to the Dinosaur Graveyard.
