A tale of two markets taking place in rugs
By Lissa Wyman -- Furniture Today, January 29, 2006
Las Vegas — For rug vendors, the Las Vegas market can mean two vastly different events — the Jan. 30–Feb. 3 furniture-focused show anchored by the World Market Center and its satellite venues, or Surfaces, the annual floor covering expo running Feb. 1–3 at the Sands Convention Center.
For years, the rug industry has had an uneasy alliance with Surfaces. Executives complain bitterly about the high costs and low sales results. Injured pride also is a factor. In the Surfaces pecking order, rugs have about the same status as display fixtures and installation tools; the star categories are broadloom carpeting, wood and laminate floors.
Only about 20 rug exhibitors will be showing at the WMC this week, but that is expected to change over the next two years. Big vendors such as Nourison, Oriental Weavers and Feizy will be opening showrooms in Building 2 a year from now. The floodgates will open in late 2007 with Building 3, where rugs, hard-surface flooring and carpeting will have a central exhibit area.
Abbyson was one of the pioneer rug vendors at WMC's first building because, as Vice President of Sales and Marketing Yavar Rafieha puts it, "The World Market Center fits perfectly with our plans for growth and product diversification."
This market, Abbyson is planning some multimedia pizzazz to attract buyers to its first-floor showroom.
"We will have plasma TV sets on the wall showing videos of rugmaking in Tibet, as well as demonstrations of our new online catalog," said Rafieha. "We are also demonstrating our online customization programs for designers. They'll be able to design their own rugs right in our showroom."
He said WMC also fits with Abbyson's diversification into the Chinese import furniture business, noting the company's design team has created coordinated furniture and rug lines.
"The two categories go hand in hand; there are synergies between the lines," he said.
Rafieha sees the Vegas market as complementary to High Point rather than competitive.
"High Point has been excellent for us," he said. "We are currently only showing rugs there. But if the right space came up, we would definitely expand our presence there with both furniture and rugs."
Last summer, Safavieh chose the WMC to introduce its diversification program from rugs into furniture. For this market, the company has revamped its first-floor showroom. "We've got to keep the excitement going with constant change," said company principal Arash Yaraghi.
He said the furniture and rug industries are vastly different in terms of merchandise presentation.
"Rugs are displayed on racks, period," Yaraghi said. "Even if you change every rug on the rack, the showroom will always look the same. Furniture, by its nature, is much more dynamic. We can create a whole new look for every market. When you're in the furniture business, you have to do that to keep the customers coming in. If it always looks the same, they think you haven't added anything new."
This January heralds another period of major change for Safavieh. In addition to its commitment to furniture, the company is making its first entry into licensed products with the introduction of the Thomas O'Brien line of rugs.
Nasser Rahmanan, president of Masterlooms, was one of the earliest tenants of the World Market Center. "Judging from hotel bookings and our experience in July, I predict the Las Vegas market will be a huge success," he said.
The Surfaces show also should benefit the WMC, predicted Rahmanan: "I think we'll see a lot of carpet people coming in to see what this place is all about."
As the WMC launches its leasing campaign for the floor coverings center in Building 3, Rahmanan sees glory days ahead. "With 400,00 square feet of permanent space for floor coverings, this will be the Mother of All Markets," he said.
While some large rug vendors such as Oriental Weavers and Nourison will be staying with the Surfaces show at the Sands until their WMC showrooms are completed next January, other big rug companies in Building 2 are opting for temporary space at the WMC's Pavilions or the Mandalay Bay space.
Feizy has a large presence at the Pavilions. "I walked the Pavilions last summer, and I see terrific opportunity there," said President John Feizy. "I predict we will do better in the temporary space at the WMC than we ever did at Surfaces, which is geared primarily to broadloom. In addition to seeing new customers from the furniture channels, we'll also have more time with them. The Surfaces show is just three days, while the WMC event is five days."
Both Nourison and Couristan are introducing new broadloom carpet lines, which makes the Surfaces expo a good bet for this year.
"We are creating a new broadloom division for high-fashion patterned carpet, but instead of selling for $80 at retail, this line will be at the $18 to $40 level," said Ron Couri, president and CEO of Couristan.
"We will be launching this division at Surfaces, with a total merchandising program and a great deal of fanfare."
In addition to patterned broadloom, the new Creations by Couristan division also will offer several coordinating rugs.
The hospitality segment of the floor covering business is an important part of Couristan's business, Couri noted. The fact that Las Vegas is home to so many hotels and restaurants makes the World Market Center an attractive venue.
However, Couristan has not committed to the WMC. "We're still negotiating," he said. "If we can obtain a year-round showroom, we'll be there in a flash."
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A tale of two markets taking place in rugs
Jan 30, 2006
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