Rug vendors hopeful
By Lissa Wyman -- Furniture Today, July 16, 2007
Atlanta — The sluggish state of the rug business was not enough to dim the hopes of vendors going into this week's International Rug Market, which started Sunday and runs through Wednesday at AmericasMart Atlanta.
"Summer market is normally slower than the January event, but we do have appointments, we do have traffic, and we do have new products," said Alex Peykar, a principal of Nourison.
While the stock market and certain other economic indicators are strong, the home sector isn't, Peykar said. "But I've always been an optimist and I see no reason to change now," he added.
When retail business is soft, it often results in lower attendance, but that doesn't mean the market is a bust, said John Feizy, president of Feizy Rugs.
"The summer market has become an appointment-driven event. We have to work harder and smarter to get customers into our showroom," he said. "We are known as a fashion and service-driven vendor. Those are the qualities that will make our company stronger, even during slow business cycles."
Kami Navid, executive vice president for Jaunty, said the slower July market shouldn't be an excuse for vendors to slack off in developing new products.
"If vendors don't bring out interesting new things at every market, then there is no reason for retailers to come to the show. It is our responsibility to always have something new to talk about, to create a buzz for our customers and give them a boost," he said.
In addition to new rug collections, Navid said Jaunty continues to emphasize its merchandising systems for retailers who are just entering the rug business. "We have a program that allow retailers to get into the rug business in less than 5½ square feet and with a minimal investment," said Navid.
Joan Catello, vice president of national accounts for Surya, said that when business is off, retailers and vendors are caught in a Catch-22 situation.
"People are tired of the same old things, but they are afraid to try new things. The vendors who take risks and are aggressive in new product development will certainly come out ahead. It's all in the mindset and attitude," she said.
Catello said Surya is developing new home accent categories, such as pillows and wall art, that coordinate with the company's rugs. "We are also broadening our exposure in the machine-made business and entering the printed accent rug business," she said.
"Business for retailers is VERY tough, and the smaller specialty rug retailers are suffering the most," said Arash Yaraghi, a principal of Safavieh. But Yaraghi remains philosophical: "There are always times when business is bad. It's part of a cycle. But if you do something special for your customers, you will do well. If you give customers a reason to come to your showroom or your store, they will."
Safavieh emphasizes fashion, and has introduced rugs by home style leaders Martha Stewart and Thomas O'Brien. "The only way to stand out among hundreds of vendors is to offer unique products that have authority and taste in the sphere of interior design," said Yaraghi.
Business at Trans Ocean Imports has been good, despite some softness at retail, according to Charles Peck, president.
"Good stuff is selling, bad stuff isn't," he said. "Consumers understand pretty and good value. That's the constant challenge for rug vendors, but as long as we can provide that to our customers, we will have no problems."
Rafi Amirian, vice president of marketing for Shalom Bros., voiced confidence about the Atlanta market. However, like other rug executives, he expressed some concern about business conditions. "We've booked a lot of appointments. We have a lot of regulars and they are always there. Will they be stocking for fall? That's the big question."
Amer Rugs, an Indian-based manufacturer of high-end, hand-knotted rugs, has "a strong commitment to the U.S. market and we are in a major growth pattern, so we are extremely optimistic about the Atlanta market," said Celeste Casale, sales and marketing manager "We recently doubled our warehouse facility in Georgia and we are building a national sales force of seasoned sales agents."
Ebisons Harounian is also looking for a relatively strong July market. "The retail business has been down for a long time, but we are optimistic. There are indications that retail inventories are low, so buyers will be coming to market to replenish their stock," said Michael Harounian, a company principal.
"We can't look at the market strictly on a month-to-month basis. We have to look at the big picture," he added. "An election year is coming up, which is always good for the economy. So I am very optimistic about the remainder of 2007 and I think next year will be phenomenal."
"I'm planning to have a good market, even though it's pretty nasty out there at the retail level," said Bob Kirby, president of the year-old Vinings Imports, which specializes in high-end, hand-knotted products. "Fortunately, the current state of business is systemic; we've just got to cut expenses, suck in and ride it out."
