Rug buyers seek fresh ideas at Atlanta show
By Lisa Wyman -- Furniture Today, January 20, 2008
Atlanta — Last week's Atlanta International Rug Market helped raise the spirits of the ailing rug industry. After a lackluster 2007, retailers came to the industry's big show looking for exciting ideas to help jump-start the category this spring.
Vendors said that making a buzz in the market is crucial for success, and even survival, in hard times.
"I try to close my eyes and ears to any negative reports that may be in the air. We've done a lot of behind-the- scenes work to make our position stronger. We are creating better products and developing better services so we can be the best partners for our customers," said Alex Peykar, a principal of Nourison.
Several major licensing programs debuted in Atlanta and celebrity appearances helped bring some glamour to the market. Food Network stars Paula Deen and Sandra Lee made a splash at suppliers Kaleen and Feizy, respectively.
In its first venture into licensing, Kaleen introduced three Paula Deen lines.
"We didn't know quite what to expect with this program, but we were confident that the Paula Deen name had very high recognition with consumers. The results were beyond our wildest expectations," said Joe Barkley, executive vice president.
Lee, the Food Network personality who specializes in the "Semi-Homemade" lifestyle, helped Feizy celebrate its 30th anniversary.
John Feizy, president and founder of Feizy Rugs, said it's important to keep the excitement building for new products and programs.
Cyrus Yaraghi, a principal of Safavieh, said the company's business continues to increase despite the tough times.
"With Martha Stewart and Thomas O'Brien, we have two very strong licensing partners that are targeted to two distinct customers," said Yaraghi.
Borrowing a page from Hollywood tradition, Loloi Rugs had an official premier of three new collections at a premarket curtain-raising ceremony at its showroom. The product marked Loloi's entry into the machine-made rug business.
"In a down economy, it's very important to try new things. If we can develop better products and new and exciting ways to get people to buy rugs, we've got a good chance to succeed. In this market, if you're not innovative and not creative, you're dead," said Amir Loloi, president.
In the past year, Surya has diversified its product line to include coordinating rugs, wall art, pillows and throws, and works with several furniture makers to develop rugs that coordinate with upholstery fabric. Surya is also developing new merchandising concepts to show retailers how to present all the products together on the selling floor, according to Satya Tiwari, president.
The company unveiled the coordinates concept to rug industry customers with a gala party at the posh Capitol City Club in downtown Atlanta.
Jaunty has pinpointed two areas of concern for retailers: merchandising rugs in the most cost-effective way and the challenge of Internet selling. Kami Navid, executive vice president, said the company's Showtime merchandising system "allows retailers to show lot of product in a small amount of space and with a minimum investment."
Stephen Hoberman, Kane Carpet's national sales manager for rugs, said the company is poised for growth this year despite the economy. Kane specializes in the development of innovative yarn systems and value-oriented products, including coordinated broadloom and rugs.
Hari Tummala, executive vice president for Kas Oriental Rugs, said the company showed growth in 2007 and he expects the same this year.
"It will be a tough off-and-on market, and everyone is pressured by the weak dollar and shorter margins," he said, but added that he is confident that aggressive suppliers will win out in the end.
Tom Morris, general sales manager for 828 International Trading, said the aggressive approach involves more than just product.
"The most important thing for us is to get feet on the sidewalk," he said. "People who are in front of the dealers will win in the long run, even when times get tough."
"Retailers can either do things the way they've always done them or they can find new ways to make things happen," said Mark Ferullo, vice president of sales for Rizzy Rugs.
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