Rug makers expect to extend reach in Vegas
By Lissa Wyman -- Furniture Today, July 23, 2006
Las Vegas — This summer's Las Vegas market is giving rug exhibitors a jolt of energy. Undaunted by lackluster sales at retail, many rug vendors are expecting Las Vegas to attract new faces and fresh business.
"If anything can get people out, it's Las Vegas, even if it's 105 degrees," said Eric Birnbach, president of Capel. "We have an investment in this market, and we think it will be a success."
Yavar Rafieha, vice president of sales and marketing for Abbyson, a rug and home furnishings importer, said the company continues to attract new faces as it transforms itself into a total source for home furnishings.
"We're expecting a fantastic market," he said. "We've done a lot of preparation and we've got tons of buyers coming in."
Abbyson has upgraded and redesigned its showroom "to reflect the continuing changes in our business model," Rafie-ha added. "2006 is a period of transition for us as we emerge into a total home furnishings producer.
"By 2007, the company will be operating on a new level. We're here to play hardball."
Rafieha said Las Vegas continues to get stronger as a market venue. "When the second tower opens in January, 2007, Las Vegas will become an essential component of the home furnishings market scene."
Coming directly off the Atlanta summer rug show, Las Vegas rug exhibitors are keenly aware of the differences in the buyer base that each market attracts.
"In Las Vegas, you always have a crowd, but they are not looking for the same quality as the customers who attend Atlanta," noted Arash Yaraghi, a principal of Safavieh, a rug importer that introduced its furniture division last summer in Las Vegas.
"Atlanta attracts rug professionals and we sell more high-end products (there)," said Yaraghi. "We tend to sell lower-priced items in Las Vegas. The challenge we all face is to continue to make more and more beautiful products that offer better and better value."
Satya Tiwari, president of Surya Rugs, agreed. "Atlanta is the mecca of rugs. However, Las Vegas is an interesting and growing market for us."
Tiwari noted that Las Vegas attracts a lot of retailers from Western states and internationally. "It is providing us with an opportunity to expand our business in areas where we have not traditionally had deep coverage," he said.
Like Abbyson's Rafieha, Tiwari said he is looking forward to the January Las Vegas market, when the second phase of the World Trade Center opens. "We'll be seeing many more vendors, including home fashion people as well as new rug exhibitors. At that time, Las Vegas will really come into its own."
A growing market
Is Las Vegas hurting the Atlanta rug show? Most exhibitors say "no."
"Las Vegas is attracting people who don't ever come to Atlanta," said Steve Mazara-kis, president of Hellenic Rug Imports. "In Atlanta, it's hard-core rug people. In Las Vegas, we will see more regional buyers in the furniture and home accents business, which is a big growth market for us."
Hellenic is expanding its Vegas presence in its World Pavilions showroom.
"We have a space that is 10 feet wide by 200 feet long," Mazarakis said. "That's more than two basketball courts. You need roller skates to cover it. We're showing everything on new racks and in addition to our running lines, we're offering terrific closeouts."
Masterlooms was one of the first rug exhibitors to open a permanent showroom in Las Vegas last summer. At that time, the handmade rug importer closed its Atlanta showroom.
"The kind of attendance we get in Las Vegas is very different from Atlanta," noted Nasser Rahmanan, president. "Atlanta is appointment-driven, while we get a lot of walk-in traffic in Las Vegas," he said. "We are also seeing a lot of small stores who are just entering the category."
Rahmanan said that although retail business has been slow this summer, the company is introducing a lot of new products.
"We've set up a lot of appointments and we also expect big walk-in business. We'll be happy with the results."
Looking forward, Rahmanan added, "There's a lot of anticipation for the January 2007 Las Vegas market. There will be a lot of new rug tenants and that will provide an even more interesting setting for West Coast rug professionals."
At United Weavers, Diane Carleo, director of marketing, predicted that this round of the Las Vegas market should be excellent.
"It's no secret that retail business has been slow," Carleo said. "Many stores are looking for new products they can sell now to help get business moving again. The rug category is one of the things they'll be looking for."
Private label programs
Carleo added that in the past year United Weavers has expanded its private-label program for key accounts.
"We create the designs in conjunction with the customer," she said. "We are using these private-label programs with major Internet and catalog retailers because it not only gives these customers design exclusivity, it also protects our regular customers who want to differentiate themselves from mass market, catalog and Internet stores."
In a similar vein, Birnbach of Capel noted that markets have become less important in general because the company works year-round with key accounts to develop exclusive products.
"This program started some time ago with two major retailers," he said. "In the past few months, we've decided to expand on it and develop exclusive product with every major retail account."
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