Rug vendors diversify mix
By Lissa Wyman -- Furniture Today, January 27, 2008
Las Vegas — Rug vendors are coming to Las Vegas with an "anything can happen" attitude.
And they're not letting trash talk about the economy get them down. Instead of waiting out the storm, they are making aggressive moves to get things rolling again. They are diversifying their product mix, sharpening their service and delivery and developing new products they hope will be irresistible to retailers and consumers.
"It's inevitable that there are ups and downs in business. But the people who go out and do something to make their business better are the ones who will prosper in the long run," said Alex Peykar, a principal of Nourison.
After a pretty dismal 2007, rug executives don't have high expectations for 2008. However, the lively Atlanta International Rug Market, held Jan. 17–20, has given the rug industry some psychological momentum going into this week's market.
Another plus is the fact that the annual Surfaces floor covering expo, held at the Sands Convention Center, runs the last three days of the Las Vegas Market. That show could provide WMC rug exhibitors with some warm bodies from the floor covering specialty store channel.
Looking forward, rug executives say that this summer's opening of Building C will further establish the World Market Center as a viable rug-buying venue. At that time, more than 50 rug vendors will have permanent showrooms in the WMC complex.
To combat the challenges in today's market, new programs have to be exciting and compelling, according to John Feizy, president and founder of Feizy.
Safavieh, which added furniture to its rug presentation a few years ago, has new programs that present coordinating rugs and furniture. Building excitement is important to combat the current doldrums, but it must be coupled with sound business practices, according to Arash Yaraghi, a company principal.
"The challenges will drive out the inefficiencies in our industry. The companies who become more efficient will be stronger in the long run," he predicted.
Kami Navid, executive vice president of Jaunty, emphasized the importance of staying positive.
"If people have a pessimistic attitude, it becomes a self-fulfilling prophecy," he said. "You can't escape the fact that the economy is in trouble and our retail customers are probably not in the mood to buy right now. But our job is to give them a reason to buy by giving them what they want in terms of economic merchandising programs and protection from Internet retailers."
Amir Loloi, president of Loloi Rugs, said this winter's markets are a defining moment for the four-year-old company.
"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," he said. "In this market, if you're not innovative and not creative, you're dead."
Rizzy Rugs and sister company Riztex textiles are showing coordinated rugs and home textiles in Las Vegas. In the past year, the India-based manufacturer has established a distribution center and sales and management staff in the United States.
"Our business philosophy has attracted a lot of interest with retailers. We are manufacturers rather than distributors, and we are willing to work with customers to develop exclusive collections and private-label programs," said Mark Ferullo, vice president of sales.
This season, Kaleen introduced three rug collections under a licensing program with Paula Deen, a star on TV's Food Channel. Results at this month's Atlanta market "were beyond our wildest expectations," according to Joe Barkley, executive vice president.
Asha Chaudhury, CEO of Jaipur Rugs, said the company is looking forward to its move this summer from the Pavilions to Building C.
"As the first two buildings have filled, the Pavilions have become a secondary area to shop. But even though it's not the best location, we have a great deal of confidence in the growth of this market. We have already developed a new West Coast customer base with retailers who do not attend the High Point or Atlanta markets," he said.
Hellenic Rugs continues to promote its Candice Olson program, which includes a merchandising program and consumer advertising program with participating gallery retailers. Olson will greet customers at Hellenic's Pavilion 2 space Tuesday, Jan 29.
Franchise chain Rug Décor will market its specialty store program in Las Vegas in Pavilion 2, space 21702. Rug Décor has 37 stores and wants to double that number by the end of 2009, according to Scott Hayim, president of the CCA Global division.
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Rug buyers seek fresh ideas at Atlanta show
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