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Rug buyers hunt for values

By Lissa Wyman -- Furniture Today, April 24, 2005

High Point — Rug showrooms weren't teaming with buyers at the just-concluded market here, but that doesn't mean it was a bust, since appointments, typically made well ahead of time, were kept by retailers.

"We know what kind of market we'll have before it even starts," said Arash Yaraghi, a principal of Safavieh. "This market was very satisfactory because, over the years, we have developed strong ties with the furniture business."

Safavieh opened a new 4,000-square-foot showroom in Market Square, and the fact that it's not near other rug exhibitors wasn't a problem.

"We came here to meet specific customers, and they found us," said Yaraghi. "There was very little walk-in traffic, and that's fine with us."

Alex Peykar, a principal of Nourison, emphasized that High Point is an extremely important market, but the rug industry's primary venue is in Atlanta. "Our industry has a real home in Atlanta. In all the other markets we attend, rugs are merely accessory items," he said.

Furniture buyers continued to look for perceived value, said Peykar. "Our best-selling price points in the furniture category are approximately $1,000 in a 6 by 9," he said. "There's not much action any more in high-end hand-knotted rugs."

Retailers here wanted high-fashion looks at a value price, he said. "In the machine-made category, we introduced soft, blended color palettes using a combination of wool and polypropylene yarns," Peykar said. "At the $399 price point, it had very, very strong response."

Hand-tufted constructions continue to grow in importance for furniture stores, said Lee Harounian, a principal of Harounian Rugs International. "Hand-tufted rugs offer hand-made looks with machine-made prices," he said. "The furniture stores are in love with them."

David Moss, vice president of sales for Shaw Living, described this market as "outstanding," due in large part to the company's successful product launches in January.

"The momentum certainly carried through to High Point," Moss said. "We're running at full capacity now," with the partnership between Kathy Ireland and Shaw Living a major factor. "Retailers can't get enough of Kathy Ireland. The new First Lady collection is rolling out now and will be our best-selling line by the end of the year."

Austin Craley, vice president of sales and marketing for Momeni, said retailers came in for appointments and, more importantly, bought. "Business was good. Retailers seemed more relaxed and happy than they've been in years," he said.

Craley, like almost all other rug vendors, said this market is driven by appointments rather than drop-in traffic. "But it's not enough to call our customers a few weeks before the event," he said. "We've got to do the due diligence all year round. "

Jonathon Witt, vice president of marketing for Oriental Weavers-Sphinx, said the market exceeded his expectations.

"In the past six months, our licensed product presentation has jelled into three distinct categories," Witt said. "The new Woolrich line has a uniquely American hand-crafted feel. Warhol has a young, contemporary edge. The National Geographic collection covers tribal and international looks. It's a lifestyle story that works with other home furnishings, and it's something the retailer understands immediately."

Bill Storey, executive vice president of Karastan, noted the company's major product presentations are in Atlanta rather than High Point. "We freshened up the line with a few pattern additions, but this is not our big introductory market," he said.

Karastan's major department store and furniture store customers came in at a steady rate here, Storey said, adding, "We got big customers at this market, but not high traffic."

The retail mood seems fairly optimistic. "I think we're getting ready for a good year," Storey said.

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