Rug players prepare for upturn
By Lissa Wyman -- Furniture Today, October 15, 2006
High Point — After suffering through an unusually sluggish summer, rug executives are expressing optimism for the fourth quarter. Gas prices are coming down, consumers are going back to the stores and retailers are beginning to buy rugs again.
In a highly competitive market, rug makers and importers say they must constantly change their merchandise mix and improve sales and customer service in order to grow.
According to Steve Codella, vice president of sales for Couristan's eastern region, the company has been on a record growth trajectory for the last year.
"Business is good, but it's not easy," he said. "We've got a good, aggressive sales force and we're out there clawing and scratching to get our share of the business."
John Feizy, president and founder of Feizy Rug, said that product development has been a primary concern for the importer in the past year.
"We are really looking forward to High Point," said Feizy. "We have pared down our running lines during the last several markets and are introducing eight new collections this October. The design staff has worked long hours to assure these products are the cream of the crop."
Feizy anticipates a strong market. "We did good business at the last High Point market and now that the economy is on an upswing, we expect to see even more traffic. We have already seen an increase in the amount of appointments booked, so all signs point to a great show."
Kami Navid, president of Jaunty, said third-quarter sales seemed to be picking up, giving everyone a dose of end-of-year optimism. "The summer is always slow, but now we have noticed an increase in business, so we are optimistic for the fall selling season. And when business is good at retail, buyers come to market to buy," he said.
High Point offers especially good potential for Jaunty, Navid noted. "We are targeting furniture stores with our total marketing system. It's designed for stores who want to get into the rug business without too much investment."
Yavar Rafieha, vice president of sales and marketing for Abbyson, said the company has doubled its showroom in the International Home Furnishings Center to 4,000 square feet. It will now contain both rugs and furniture.
"The expanded showroom is another step in our long-range growth strategy," said Rafieha. "Since we doubled our space, our goal is also to double the number of retail appointments for market."
Safavieh, another rug vendor that recently added furniture, is also expecting a good market, according to company principal Arash Yaraghi.
"I think High Point will continue to do well," he said.
Safavieh has a presence in both Las Vegas and High Point, but the High Point market attracts more focused buyers, he noted. "The main reason people come here is to find products, not to gamble or go to restaurants and shows."
Industry changes affect all vendors, big and small, rug executives said. Nourison, one of the largest rug importers, is not resting on its laurels.
"Business is okay, but it doesn't get easier," said Peykar. "We constantly have to respond to dealers' expectations and changing fashions. "We have to provide the best products, perceived value and levels of service to our customers."
At Surya, President Satya Tiwari also noted that survival requires a constant response to change.
"There are a lot more players in this business. In order to survive, companies must adapt to change and interact with customers in a very transparent manner," he said.
High Point continues to be strong for Surya. "We love this market and it is historically our best in terms of profitability," said Tiwari.
Tiwari said the company is expanding its Showplace showroom from 1,200 to 3,000 square feet.
"Not only do we do a lot of business at High Point, but we also learn a lot," he said. "In many ways, I'd rather see what's going on with other accessory companies than with other rug companies. High Point broadens our scope."
High Point also functions as an incubator for future styling, noted Asha Chaudhary, CEO of Jaipur Rugs, an importer specializing in fine hand-knotted rugs.
"High Point is always a good test market. We get a lot of feedback on our lines from designers, which helps us fine tune our products. High Point is also a good place to study new trends in all home furnishings categories," she said.
"We are using High Point as a soft launching point for a new group of rugs that represents more aggressive price points and diversification of our line."
"We're expecting a good High Point event," said Reza Momeni, president of Momeni. "After a quiet summer, the retail business seems to be coming back strong. That gives the buyers a tremendous psychological boost."
Momeni said that High Point draws such a diverse range of buyers that it is difficult to pinpoint trends. "It's such a big market that everyone seems to be looking for something different. Fortunately, we have a wide variety of collections. Hopefully, we can fill the demand."
High Point is expected to be strong, said Lee Harounian, a principal of Harounian Rugs International. "Gas prices are coming down and people feel they have more money in their pockets now. It's a big change from this summer, which was slow for the entire retailing business. I think the last quarter will be good, and will set the stage for a very good January market."
Business has been up and down all year, noted Hari Tummala, executive vice president of Kas Oriental Rugs.
"Right now, it seems to be on the rebound after a very slow summer," he said. "So we are looking forward to a strong High Point market. We have been targeting furniture stores for some time, and we have fresh new color palettes and styles tied to home fashion trends."
"We always go into market with a lot of enthusiasm," noted Joe Barkley, vice president of sales and marketing for Kaleen. "Although some smaller stores who normally come to High Point have told us they are not coming in October, our appointment with major furniture retailers are running ahead."
Barkley said he was pleased with the Monday-to-Sunday format this fall. "I think customers like it this way because it involves only a one-week trip. "So far, they are sticking with the official opening dates. Most of our appointments are for Monday, Tuesday and Wednesday."
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