Building B enhances presence of rug vendors
By Lissa Wyman -- Furniture Today, February 12, 2007
Las Vegas — With the opening of the World Market Center's Building B, the ranks of permanent rug showrooms will swell from about a dozen to nearly 30 for this week's show, transforming this venue from a frontier outpost to a major market for the rug industry.
Coming on the heels of the International Rug Market in Atlanta, rug executives believe the Las Vegas show will serve the vital function of keeping market momentum going through the all-important first quarter of the year.
They are confident Vegas will offer new opportunities for selling in the Western states, and for opening more furniture store doors to rugs.
And they hope the excitement generated by the opening of Building B will help build traffic and loosen the purse strings of buyers.
"Everybody feels good in Las Vegas," said Cyrus Yaraghi, a principal of Safavieh, which will show both rugs and furniture here. "People are much looser. When you go to Vegas, you don't count your money. You want to buy."
Safavieh will show the new Martha Stewart Living rug line here. "The Martha Stewart line has generated a great deal of excitement, and I believe the combination of Building B and the introduction of really interesting product will give the entire industry a boost for 2007," Yaraghi said.
He believes Safavieh is poised for strong growth. "We have built a new infrastructure of sales and marketing people, we are making inroads into the furniture business, and we've got major product introductions," Yaraghi said. "We are budgeting for an increase of 30% to 40% in sales this year."
Yavar Rafieha, vice president of sales and marketing for Abbyson, the West Coast-based furniture and rug resource, said, "I think the January Vegas market will go down as one of the best markets in the history of home furnishings. The buzz for Building B has been incredible and we welcome the new tenants with open arms.
"Las Vegas is the future in terms of the home furnishings industry, and the opening of Building B is going to prove it."
Abbyson plans to move from Building A to a new showroom on the first floor of the WMC's third building, now under construction. "We will go from a 3,000-square-foot space to 15,000 square feet, and we will spend over $1 million in showroom design," Rafieha said. "That proves we are committed to this market. We need change and diversity in this business. The old ways don't work anymore."
Nourison, meanwhile, is opening a new showroom in Building B and will show a record number of introductions, said company principal Alex Peykar. "Not only are we bringing new rug collections, we also will be showing our new machine-tufted broadloom lines," he said.
The January markets in Atlanta and Vegas mark the debut of Nourison's Liz Claiborne-licensed rug collection, plus several hand-tufted and power-loomed rug lines.
"Our marketing philosophy is to keep producing new products that no one else makes. We keep filling niches," said Peykar.
He predicted that 2007 will "not be an easy year," adding that 2006 also was challenging but Nourison finished the year on the plus side. "As long as we remain positive and do what we do best, we will be ahead of the game," Peykar said. "We don't want to hear anything about doom and gloom."
John Feizy, president of Feizy Rugs, said his company also met the challenges of 2006 and came out ahead of the game. "We worked twice as hard to improve sales in 2006 than we did in previous years, and as a result we had a positive year," he said. "That's what we will continue to do.
"We're expecting a lot of excitement at the Las Vegas Market.... What happens in the future is really a guessing game," Feizy added.
"We've got non-stop appointments lined up for Las Vegas," said Austin Craley, vice president of sales and marketing for Momeni, which is showing in Building B. "The first quarter is so important for the rug business. It sets the tone for the entire year. The last quarter of 2006 showed a definite upturn, so we have excellent momentum going into 2007."
Shaw Living, the rug and home textiles division of Shaw Inds., the giant floor covering producer, will be making its official Las Vegas debut in the Pavilions. "This is the first time we've had our own showroom," said Brand Manager Kim Barta. "In the past, we've shown our Kathy Ireland rugs in the Standard Furniture showroom," a practice that will continue.
"There is so much excitement being generated by both the Atlanta and Las Vegas markets that we anticipate a very strong year," Barta said.
"I'm an eternal optimist," said Nasser Rahmanan, principal of Masterlooms, which was a pioneer rug showroom in Building A. "The opening of Building B will certainly result in a lot of new people coming into this market, and I see good quality vendors opening new showrooms. Now a lot of top rug people will be showing at the World Market Center, and this is good for everyone."
Rahmanan said 2007 will be challenging. "The middle part of the market is being squeezed out," he said. "The rug business is now either very high end or low end. We are putting all our efforts into the high end of the business, with both new programmed collections and special-order lines."
With the opening of its Building B showroom, Surya is making a major expansion in its business, said President Satya Tiwari.
"Between Atlanta and Las Vegas, we have our biggest appointment lineup ever," Tiwari said. "We welcome new opportunities to meet with our customers, because we incorporate their comments and suggestions into our new product development. The furniture people are especially helpful in giving us color and design directions."
Capel, another pioneer tenant in Building A, has committed to a new showroom in Building C. President Bruce Hric said the opening of Building B this market will result in many more rug vendors — and more traffic for everyone. "We're expecting a big turnout. Las Vegas has become the place for the home furnishings industry. You have to be there," he said.
Steve Mazarakis, president of Hellenic, said he had signed for a lease in Building C, but at the last minute a spot opened up on the second floor of Building B. "This represents a big opportunity for our company," he said.
Commenting on the business outlook, Mazarakis said, "In 2006, we stayed pretty much on par with 2005, and we think that 2007 will be another tough year. But if you stay aggressive, you're going to be OK."
Lee Harounian, a principal of Harounian Rugs International, said the January markets are a good barometer for the year as a whole. "We've got a lot of people coming to see us in our new showroom in Building B, and hopefully that enthusiasm will carry over for the entire year," he said.
Hari Tummala, executive vice president for Kas Oriental Rugs, said the importer will be showing in the Pavilions temporary area while it waits for its Building C showroom to be completed.
"We are going into 2007 with a very aggressive outlook," he said. "Consumer confidence is returning and business picked up in the fourth quarter of 2006. With our commitment to the Las Vegas Market, we are increasing our exposure to the home furnishings business. The buyers who come to Las Vegas are drawn by color and design. With our reputation as a style leader, we feel Kas will do very well."
