Article Number : 1686 |
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| Date | 1/24/2007 8:02:10 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=1686 |
| Abstract | By Louis Iannaco New York—Complete with a stable of live sheep, Nourison Rug Corp. announced it is getting into the machine tufted residential wool broadloom business with the opening of a 500,000-square-foot manufacturing facility located in China’s Shandong Province... |
| Article | By Louis Iannaco New York—Complete with a stable of live sheep, Nourison Rug Corp. announced it is getting into the machine tufted residential wool broadloom business with the opening of a 500,000-square-foot manufacturing facility located in China’s Shandong Province. Nourison also said it had reached an agreement to design, manufacture and market area and accent rugs under the Liz Claiborne Home brand name. Nourison, based in Saddle Brook, N.J., is planning aggressive growth over the next five years by expanding its broadloom manufacturing and distribution capabilities, while adding new designer lines to its growing portfolio, noted company principal Alex Peykar. Nourison’s new manufacturing facility will allow the company to better compete for broadloom business, particularly at the upper end of the market, he said. The $20 million plant, which utilizes high-speed tufting machines designed to work with natural fibers and blends, will produce many first-of-its-kind broad-loom products, including hand-carved designs in high-quality wool and silk at competitive prices. The plant was completed late in the fourth quarter of 2006. It will be in full production for the first quarter of 2007. Nourison is also in the process of completing construction on a new 300,000-square- foot distribution facility in Calhoun, Ga., which will be able to service the U.S. market with the company’s new broadloom offerings. Said Peykar of Nourison’s entrance into the segment, “We saw a gap in the market and decided to fill it. We’re always looking for niches to fill.” Although Nourison has always produced wool and wool-blend broadloom, company officials believe they will now be able to expand that product category substantially. With suggested retail price points of $35 to $95 a square yard, Nourison’s new wool broadloom collections, available for distribution in the spring of 2007, compete in higher-priced synthetics while retaining all the benefits and beauty of wool carpeting. The new lines will be in loop, cut and loop, random shear and saxony constructions. Several years ago, Nourison entered the broadloom business with machine-woven carpeting made in China. Peykar noted, “The tufting process is about eight times faster than the weaving process. Because we do our own spinning and dyeing, we’re able to bring wool carpets to the market at a very affordable price. “We aren’t planning to compete directly with the giant broadloom tufting mills of the U.S. “We respect the job being done by these tufted mills. However, over the last 20 years, synthetic yarns have taken over domestic broadloom manufacturing, leaving a gap in the market for affordably priced wool broadloom.” Peykar also noted Nourison is re-introducing wool broadloom “at prices we haven’t seen in 20 to 30 years.” While retail sales remained relatively flat in 2006 and industry forecasts remain cautious, Peykar is optimistic. “We’ve laid the foundations for aggressive growth over the next three to five years, led in part by new broadloom and domestic divisions. Until now, our broadloom products were woven, targeting the top 1% of the category. Along with our newest facilities, which will allow us to provide a wide assortment of machine-tufted products with natural fibers at moderate to high-end price points, we’ll increase our targeting to maybe the top 5% of the category.” There was doubt, noted Peykar, that the recent skyrocketing costs of raw materials played a factor in Nourison’s decision to enter the wool business. “Increases in the price of petroleum-based products have caused the prices of synthetic yarns to skyrocket, while increases in the price of wool have been modest for the past few years.” Even as the company’s production capabilities expand, Nourison has not lost sight of its cornerstone products. Home to the world’s largest archives of historic to modern designs, Nourison remains the leading supplier of quality hand-made area rugs, noted Peykar. Also promising for 2007 is the introduction of licensed collections, including area rugs for Liz Claiborne Home as well as the expansion of its Calvin Klein collections. The area and accent rugs will coordinate with Liz Claiborne Home bedding, bath and kitchen collections as well as complement Liz Claiborne Home furniture. Previews of an initial three collections began with the official launch to the trade at the Atlanta International Area Rug Market earlier this month. Items will be available to consumers in mid-2007 at home furnishings specialty dealers and flooring stores, including Carpet One Floor & Home, the exclusive retailer of Liz Claiborne Home carpet, hardwood and ceramic tile flooring. Commenting on the announcement, Virginia Bremer, director of licensing for Liz Claiborne Home said, “We view this partnership as an excellent opportunity to expand our home offering and enhance our floor covering line.” Peykar noted, “We are delighted to begin this partnership with Liz Claiborne. Working together, Liz Claiborne and Nourison will create a distinctive line of area and accent rugs that will complement the other products in the Liz Claiborne Home Collection and enable the fashion-forward consumer to create a coordinated look in every room of her home.” The retail price for Nourison’s Liz Claiborne Collection is $399 to $599 for a 5 x 8. “The Liz Claiborne license opens us up to another consumer we haven’t necessarily reached before,” said Julie Rosenblum, Nourison’s new brand manager. “It adds something very special to our brand and will bring us a whole new level of exposure.” To highlight the company’s diverse product lines, Nourison has also launched a trade-oriented marketing campaign with the theme, “One source. Unlimited possibilities” that focuses on its complete flooring solutions. The company will also improve upon its highly successful Nourison 2000 line this year with the introduction of Nourison 3000, a unique collection of hand-made area rugs that will become the company’s ultra-luxury collection. Nourison 3000 features designs woven from the highest quality silk and 100% pure New Zealand wool. Said Peykar, “Nourison 3000 features the same quality as heirloom rugs costing $8,000 to $12,000 while providing better color retention.” Peykar seemed happy with the direction Nourison has taken and was hopeful about its future. “With not just the new plant and within the next few years, the company’s volume will be doubled. Our growth plan is not only about tufted product as we’ve invested heavily in additional looms we are doing woven products in, and we’ve increased the offerings in all of our categories.” |