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Hand-knotted rugs making a comeback

By Lissa Wyman -- Furniture Today, May 22, 2006

After a decade of dwindling sales, hand-knotted rugs are staging a mini-comeback.

No one is saying that hand-knotted rugs will regain their one-time dominance, but they offer an answer for furniture retailers and designers searching for better quality rugs to complement high-end furniture.

"You can't show a $600 tufted rug with a $5,000 sofa. It kills the rug completely," said Christie Arnault, sales manager for Harounian Rugs International. "Good goes with good."

Price wars have driven down the cost of hand-tufted and machine-made products to under $500 for a 6 by 9 size. As a result, there is a void at the higher end, which some vendors are looking to fill with the venerable hand-knot construction.

Selling hand-knotted rugs demands more skill than selling strictly on price, said Austin Craley, vice president of sales and marketing for Momeni.

"We are now building a very successful furniture store hand-knot program. We are targeting high-end furniture stores and placing hand-knotted programmed rugs into room settings," he said. "We are also working closely with several furniture makers to coordinate color palettes."

Craley said Momeni has 14 re-orderable programmed hand-knot collections, versus three or four five years ago.

"Hand knots have never left us," said Eric Birnbach, president of Capel Inc. "With our wholesale operation as well as 10 Capel Gallery stores, we have to cover the entire price spectrum. We carry hand-knotted rugs up to $5,000. And when you consider how long it takes to make a single hand-knot rug, the value is outstanding."

"One-of-a-kind, hand-made rugs got a lot of action at this market," said Ed Vairo, director of creative marketing for Nourison.

Miresco made a special buy of semi-antique one of a kind hand knotted rugs that sold like hotcakes, said Donette Miller, vice president of marketing.

At Couristan, president Ron Couri said the company is in the process of reconstructing its hand-knotted lines.

Kami Navid, president of Jaunty, noted that a decade ago, 90% of the importer's line was in hand-knotted rugs. "Today, about 70% of our line is hand-tufted and 30% is hand-knotted. Ultimately, we think hand-knotted rugs will come back."

Masterlooms, which is known for its high quality rugs that can retail for as much as $5,000 for 6 by 9 size, expanded into more popular price points a few years ago but has changed its philosophy, said President Nasser Rahmanan.

"We are re-emphasizing higher quality rugs. Retailers are getting tired of the price wars, particularly the stores that are more designer-oriented," said Rahmanan.

Kaleen is best known for its Indian hand-tufted rugs, but the company is increasing capacity for its hand-knotted rugs, according to Joe Barkley, vice president of sales and marketing.

"Instead of introducing less expensive products, our strategy is to develop higher quality product," he said." It's one way we can differentiate ourselves in the market, and we now cover the entire price spectrum for hand-made rugs."

Oriental Weavers Sphinx built its reputation on machine-made rugs, then got into hand-tufted a few years ago.

"Now we are venturing into the value-oriented, hand-knotted business with a new line that offers a great deal of value, retailing at the $699 level for 5 by 8," said Jonathon Witt, vice president of marketing.

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