Survivors in rug world stay aggressive, try new ideas
Furniture Today Staff -- Furniture Today, December 19, 2011
Lissa Wyman Rug editor
It appears that the rug industry will experience small gains in 2011 of perhaps 3% to 4%. (We conveniently forget just how awful 2010 and 2009 were.)
Most of those gains will come from already-strong retailers and vendors who can afford to aggressively market their products. These are the companies that are expanding, trying out new ideas, and using the Internet and social networking. They are gaining market share at the expense of the weak sisters.
Certainly a lot of the stuff that continues to hit the fan in this economy is no one's fault. Rug guys didn't cause the housing crisis, unemployment, the international debt mess or the rising costs of labor and raw materials.
However, rug people have to shoulder some of the responsibility for their woes.
Certainly the panicky cheapening of rug prices has resulted in low profits and shoddy merchandise. This has harmed the rug industry for the long term. So maybe everybody is doing it, but that's no excuse, as my parents used to say. But done is done. Once you've lowered prices, it's extremely difficult to raise them again.
Another thing that gets on my nerves is the whining. I've been criticized for only quoting people who say good things about the business. Well, that's what they tell me. For the most part, those quotes come from the people who are aggressive and who have the resources to innovate, hire good salespeople, run their companies well and grab some market share.
I don't like to talk to the people who are forever crying about how lousy business is and how no one comes to their showroom and how they can't afford to exhibit at markets or bring out new products and on and on. As my husband says, "Nobody ever gives you business because they feel sorry for you."
So will we eventually be left with a rug business controlled by impersonal behemoths of manufacturing and retailing? Not so fast. During the past couple years, I have actually seen some start-up rug vendors who are hungry and aggressive. It's almost unthinkable to start a new business in the present climate, but what the heck? They think they have something special to offer. I like that.
On the retail side, I am seeing a lot more interest in developing modern business techniques. While we have seen a lot of attrition in rug retailing, I also see growth among the survivors. They are people who want to figure out how to use the power of the Internet rather than complain about it.
They also realize that they must diversify - not only to stay healthy, but to survive.
Happy 2012, everyone!
-
How will 2011's top five stories play out this year?
Jan 18, 2012 -
Vendors come to grips with changing marketplace
Jul 13, 2009
Merinos Home Furnishings opening display room, Boyles addition
‘Mega vessels' likely to boost capacity, stabilize freight rates
HOM Furniture adds flooring to six Twin Cities stores
Dan Masters joins Furniture Brands as VP, business development
21 companies from Turkey, Taiwan and China to exhibit at Showtime
VIEW ALL GALLERIES
