Article Number : 1253 |
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| Date | 8/11/2006 7:40:06 PM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=1253 |
| Abstract | By Lisa Wyman Atlanta—Last month’s Summer Atlanta International Area Rug Market held no surprises: Light attendance, an array of new products and plenty of quality time to meet with major customers... |
| Article | By Lisa Wyman Atlanta—Last month’s Summer Atlanta International Area Rug Market held no surprises: Light attendance, an array of new products and plenty of quality time to meet with major customers. It is no secret retail sales have been hurting for a couple months, which did not help the July event. However, most vendors were philosophical. “Things will pick up in the fall,” was the hopeful refrain. Chas Sydney, executive vice president of AmericasMart Atlanta, the Rug Market’s producer, said “Summer markets are always quiet, and world events this year certainly didn’t help matters.” On the plus side, he said exhibitors were reporting strong sales activity. “There was a tremendous number of new rugs being introduced, and the buyers who did come weren’t tire-kickers; they were here spending money. The major professionals came and our extensive, free educational programs were a big success. This summer, the Atlanta Gift & Home Furnishings Market overlapped the rug event, so exhibitors had several extra days to show their wares. “Our appointments started at the beginning of the gift market, ” noted Steve Mazarakis, president of Hellenic Rug Imports. “It’s a matter of letting those buyers know we are here for them.” One way to jump-start business is to offer market specials, noted Jeff Meadows, vice president of the Shaw Living division of Shaw Industries. “We had a private label promotion that gives retailers an opportunity to buy first quality goods they can blow out for $89 in a 5X8-ft. size.” He explained Shaw produced these one-shot rugs especially for summer market attendees. Despite the normally light attendance for the July show, Shaw is still high on the Atlanta event. “The January Atlanta market is always our best show of the year,” Meadows said. Shaw’s confidence in the future of Atlanta was also demonstrated by the fact the company is making a major expansion by moving to a 13,000-sq.-ft. showroom. The new sixth floor space will be ready in January 2007, said Meadows. (see related story on this page) According to Mike Riley, executive vice president of Oriental Weavers of America, the summer market was a winner. “Traffic is always light at summer market, but we certainly had a good number of appointments. We are known as fashion leaders, and people come here to see what’s new. We can’t disappoint them. We’ve got a good amount of new product this summer.” For the most part, the rug business has been ragged for the past couple years. As Hari Tummala, a principal of Kas Oriental Rugs explained: “Right now, business is pretty good, and we will show an increase for the first half. The problem is, it comes in waves.” Despite the ebb and flow, Tummala and other rug vendors stressed they must make their best efforts, even during slow periods. “The way this business is evolving, you’re only as good as your last market. You have to keep new products flowing. We offered 200 new styles this summer—not bad for a slow market.” A downturn at retail is normal for this time of year, but some dealers say sales are holding up quite well. “They are more than steady, they are definitely on the upswing,” noted Jim Hall, owner of Abingdon Rug in Abingdon, Va. “We have always been big promoters and we continue to do so.” Tom Rypkema, president of Kent’s Carpet Land a three-store chain headquartered in Accord, Mass., said the company is also promoting hard. “We are developing our own full-color flyers using desktop publishing technology. It helps reduce costs but allows us to have a major advertising presence.” Discussing the state of the market, Rypkema noted he is a faithful attendee, even in the summer doldrums. “If we’re not out there buying fresh new products, how can we hope to attract our customers into the stores this fall season?” he asked. This time of year, there’s always a downturn at retail, noted David Moyer, product manager for the Mohawk Select line. “During summer, consumers want to get out of their homes, rather than spending money on furnishings.” Despite the seasonal slackness, Moyer said the outlook was good for this relatively new segment of Mohawk Industries’ rug business. The Mohawk Select line bridges its Karastan division’s medium to high price points and Mohawk Home’s value-oriented mass market line. “We had a big growth spurt last year, and business continues on the upswing this year.” “Summer market is never expected to be as busy as January, but we had fair traffic for this event,” observed Alex Peykar, a principal of Nourison. Discussing the general business climate, most vendors said lackluster sales are prevalent through all areas of the nation’s retail industry. “It’s certainly not just rugs,” commented Reza Momeni, president of Momeni. “With the cost of gas and the world political situation, the entire economy is suffering.” Nevertheless, Momeni said good businesses gather strength when times get tough. “We are developing new products and working harder than ever. As a result, our business has held up well.” Rug business is doing well for Karastan, “but it’s certainly not like the gangbuster years of the late ’90s,” commented Bill Storey, executive vice president. “Fortunately, both our Karastan and Mohawk Select brands continue to grow at the high and medium parts of the market. In an industry with almost no brand recognition, we are fortunate to have the leading brand names and will continue to build on those strengths.” At 828 International Trading, the company celebrated its 10th anniversary with a daily free lunch for market attendees. “Summer market is never a major event in terms of attendance, but this year, it has turned into a strong buying event. These buyers were serious,” said John Shepherd, chairman and CEO. Overall, business continues to grow for 828, he said. “We’re gearing up for a strong fall selling season and we expect to finish the year on the up side.” Roy Evans, executive director of national sales for Feizy, said the market was good, even though attendance was low. “We saw an interesting pattern emerging at the recent markets: fewer bodies but orders were up. “There’s no reason to go to market to just hang out, so the people who came were here to buy,” he added. While Evans said market feedback indicates softness at retail, he noted some dealers are still perking along. “Retail is certainly not robust, but it’s not terrible, either.” Arash Yaraghi, a principal of Safavieh, voiced a similar sentiment. “The feeling is business is slow at retail. But when business is off, it’s an even better reason to come to market. You’ve got to come and get fresh new products and shop new sources to get business moving again.” Safavieh has made several expansion moves this year, including the addition of a wholesale furniture division and a new rug distributing relationship with Belgium-based rug and carpet maker Louis de Poortere. “Our philosophy is to continue to find new avenues for expansion. If your goal is to stay the same, you’re actually falling behind,” Yaraghi said. “The July market never attracts the same attendance as January’s, but Atlanta is still the mecca of the rug business, so rug professionals were here,” said Satya Tiwari, president of Surya Rugs. “We are promoting and advertising more than ever, so I definitely see substantial growth ahead. “It’s all about your mental attitude,” he added. “It’s catching—if you show confidence, your customers will feel it, too. If you complain all the time, you’ll get everybody else down.” Lee Harounian, a principal of Harounian Rugs International, noted when it comes to the summer markets, “we rely on high-ticket, serious rug buyers to attend and to buy.” “Because July is always slower than January,” explained Kami Navid, president of Jaunty Rug, “we made the best of it and did our homework ahead of time by setting up appointments. Retail is slower than last year, but it’s not awful. We are looking forward to a strong fall.” According to Jim Thompson, vice president of sales and marketing for the Central Oriental division of Natco Home, keeping a flow of new products in the market helps combat seasonal dips. “Attendance is never strong in summer, but we are optimistic. We have got a bunch of new stuff and the retailers who have new products on the shelves this fall will be the ones who come out ahead of the rest.” |