Rug vendors aim to sustain momentum
By Lissa Wyman -- Furniture Today, April 23, 2006
High Point — Rug vendors are coming to High Point with all guns blazing. With a solid first quarter behind them, they are confident that new products will be well accepted at the spring market here.
For many rug resources, the January market in Atlanta was the best in years, and they expect that momentum to carry through the High Point event.
High Point will be more than a rehash of Atlanta. Vendors know that products must be geared to specific retail channels, so they are introducing here collections aimed at furniture stores, as well as updating colors and designs in existing lines.
Some rug companies are debuting all-new product lines targeted to furniture stores and coordinated with other home products.
"We are very optimistic about High Point," said John Feizy, president and chairman of Feizy Rug Imports. "Furniture stores are on the uptrend and the rug category is a necessary component for their merchandise mix. Certainly rugs add significantly to the look of any furniture store showroom."
Feizy is working closely with furniture stores to help them develop effective merchandising programs for rugs, he added. "As traditional mom-and-pop stores fade away, we see an increased opportunity with large furniture stores and department stores. We see significant growth in the home furnishings sector."
Miresco Decorative Rugs is planning to "hit High Point hard," said Amir Mireskandari, president and CEO. "We think it's going to be great.
"Although there is a great deal of interest in Las Vegas, everyone we have contacted is going to High Point. It's a market that still holds a lot of fascination for buyers from larger stores."
Mireskandari sees major growth potential for the furniture store channel.
"We have a big commitment to the in-store concession business in furniture stores," he said. "With the right partnerships, it's a great business."
"We're going to do tons of business in High Point this spring," said Satya Tiwari, president of Surya Rugs, who sees both Las Vegas and High Point as viable markets. "We are showing in both venues, and we still see High Point as a major place for volume dealers to shop. That's not going to change much in the immediate future.
"There is plenty of business for each market — Atlanta, High Point and Las Vegas," he continued. "Many customers come to only one place, so it's important that we are there. It may be costly to participate in all the markets, but they also present us with opportunities to refresh our products and to learn more about each distribution channel. Markets are the place to come to be rejuvenated. Why shouldn't we love them?"
Rug vendors realize they must exhibit at several markets a year to cover all the home furnishings retail channels.
"Obviously, a lot of people who attended the Atlanta market are not going to be in High Point," said Ed Vairo, director of creative marketing for Nourison. "But judging from the enthusiastic response to our new lines in January, we are expecting a very strong High Point event."
In the past few years, price points of handmade rugs have been dramatically reduced, resulting in a blurring of the lines between Tibetan-knot, hand-tufted and machine-made products.
"Prices of the various constructions have become more competitive," Vairo said. "As a result, style and color are more than ever the main criteria consumers use when making a buying decision.
"Let's face it, consumers look at rugs as another fabric that coordinates with other products in the home. They are not overly concerned about how it is made."
Reza Momeni, president of Momeni, noted that consumers have benefited most from the downward spiral of rug prices. "Considering the time and craftsmanship that goes into the production of a single rug, this industry is providing outstanding value for consumers," he said.
Momeni predicted that High Point would be a good market. "Historically, we see the large furniture stores at this market," he said. "The furniture industry has had a good first quarter and we believe that momentum will carry through the High Point show."
With all the talk about the growth of hand-tufted products, there is also a renewed interest in hand knots, Momeni said: "People are looking for hand knots — at a price point."
Amir Loloi, president of Loloi Rugs, noted that large furniture chains are driving the market more than ever. "The smaller mom-and-pop stores are gradually fading away. It's also a phenomenon we see in the rug business," he said. "If we don't change with the times, we'll also fade away."
"We think High Point is going to be great," said Steve Mazarakis, president of Hellenic Rug Imports, which is introducing a collection under the Candice Olson licensing umbrella.
"High Point is the true fashion market, and we're on focus and on trend," he said. "We are seeing a lot of Southwest looks and more casual styling in general. This is not rocket science. You've got to watch women's fashions to see what's coming in home furnishings."
New vendor Chandra Rugs made its debut in Atlanta and Las Vegas in January. Now the company is fine-tuning the line, said Vice President Ravi Tiwari. "We are introducing a licensed collection from Janelle Style as well as adding new designs to our January collections," he said.
In order to keep the pipelines filled, Chandra is beefing up its production and delivery schedules. "The key is to have the rugs ready when the customers want it, not when it's most convenient for us. We want our service to be the best in the business," Tiwari said.
Startup companies face big challenges in the highly competitive business of home furnishings, but Tiwari noted the human touch has been an important part of the company's initial success.
"We're going back to a lot of old-fashioned leg work," he said. "Sure, we use e-mail and direct mail. But one of our most important tools is the telephone. Direct communications is always the best tactic."
"I think High Point is currently in a state of flux," said Joan Catello, vice president of sales for Kas. "Furniture buyers are taking a hard look at both High Point and Las Vegas. As a result, it will be interesting to see the flow of traffic this spring."
Catello said Kas will have many new products in High Point. "We can't just show the same things we had in Atlanta. We have to gear our spring introductions to the furniture buyer's perspective," she said.
"We're watching High Point closely," said Mark Ferullo, vice president of 828 International Trading, which is moving to a new showroom in the Suites at Market Square. For the past year, 828 has been refocusing its product line.
"We are filling our pipelines and we are now in a position to deliver product immediately," Ferullo said. "We've accomplished a great deal in the past year, but we also have to watch the broad shifts in the market. We are looking at the Las Vegas market, but we are also evaluating all the other markets we attend."
Many rug vendors are trying to decide which markets to support. Miresco, for example, currently shows in Atlanta and High Point. President Mireskandari said, "We are also looking at Las Vegas. We would like to support two major markets, but which two?"
Yavar Rafieha, vice president of sales and marketing for Abbyson, is expecting a strong turnout of major buyers in High Point. "We want to expand our presence in High Point with the addition of a furniture showroom," he said. "We introduced our first furniture collections in Las Vegas, and the response was incredible. Now we want to make a major furniture and rug presentation on the East Coast."
Rafieha said Abbyson is focusing intently on its own growth, and noted the Las Vegas-High Point rivalry will be decided by buyers.
"I think buyers are still trying to sort out the market situation in terms of which is the best market for the best vendors," he said. "It is difficult to predict what the future will bring, but in the meantime we are continuing with major expansion plans."
Steve Codella, Couristan's vice president of Eastern sales, said the company is looking forward to a strong April market.
"We've made appointments with all our major customers and we are also expecting to see new furniture store customers as well," he said.
Coming off a strong first quarter, Codella sees sales momentum building for the remainder of the year. "We have just launched a joint venture with one of the largest carpet and rug manufacturers in China," he said. "We looking forward to outstanding growth with our Chinese partner."
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