Article Number : 1739 |
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| Date | 2/9/2007 8:59:09 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=1739 |
| Abstract | By Lissa Wyman Atlanta – Last month’s Atlanta International Rug Market was one of the most successful events in years, giving the rug industry a fresh dose of optimism after a particularly challenging 2006... |
| Article | By Lissa Wyman Atlanta – Last month’s Atlanta International Rug Market was one of the most successful events in years, giving the rug industry a fresh dose of optimism after a particularly challenging 2006. Attendance may have been a little off from previous years, but this was a big buying crowd, vendors said. It’s no secret 2006 was a trying year for the industry as a whole, but vendors are entering 2007 with some momentum from a surprisingly strong fourth quarter. Big suppliers and the AmericasMart management created a party atmosphere with a series of promotional events that made this winter’s market hard to resist. Safavieh introduced its Martha Stewart rug line, and Stewart herself was on hand to make a presentation at a posh reception at the Capitol City Club. In another big introductory event, Nourison unveiled its Liz Claiborne rugs. “The introduction of the Martha Stewart line generated a lot of positive energy for the entire industry,” said Cyrus Yaraghi, a principal of Safavieh. “We had more pre-market appointments than ever before. If everyone who set up an appointment bought just one rug, we’d make our year. “Everyone wanted to see Martha in person; you think they wanted to see me?” he laughed. Retailers who came to see Stewart in the flesh were not disappointed. The lifestyle diva presented a thoughtful and lavishly illustrated slide show explaining the design influences that went into the development of the Safavieh products. “The Oriental rug business really needs a shot of excitement, and we are prepared for a major expansion in sales,” Yaraghi added. “We’ve increased our sales force, our inventory and warehousing. We are also expanding our furniture lines. We’ve got the infrastructure in place, and now we are ready for a big growth spurt.” The physical layout of the AmericasMart Rug Center had a different look this January. Shaw Living unveiled its 13,000-square-foot showroom as one of the anchor tenants on the Mart’s busy sixth floor, with Shaw Industries president Randy Merritt on hand to do the honors at the ribbon cutting. Shaw’s move to the center of the floor created a domino effect for several other tenants. As a result, new showroom openings turned the sixth floor into “Party Central” at the Mart. “Atlanta was one of the great markets of all time,” said Kimberly Barta, brand manager for Shaw Living. “Every vendor went all out in order to generate a lot of excitement.” Discussing the outlook for 2007, Alex Peykar, a principal of Nourison, doesn’t listen to forecasts of doom and gloom. “People who sit back are the ones that get behind. If you are positive and do your best, you’ll do well, no matter what happens to the economy.” On a similar note, John Feizy, president of Feizy, noted hard work creates its own rewards. “There continues to be downward pressure on prices worldwide, and consolidation at the retail level. As a result, we have to work twice as hard to produce increased profits. Fortunately we have developed a great marketing staff and sales force to be able to accomplish our goals in a changing market.” The home furnishings business has a profound affect on the rug business, according to David Moyer, product manager for Mohawk Select, a division of Mohawk Industries that specializes in mid-range price points. “We see major growth in the furniture retail segment, and for Mohawk Select that means moderate price points,” he said. “If a furniture group is selling at $1,499 to $1,999 for a seven-piece set, the rug needs to be $199 to $249, with $199 as the biggest mover.” Discussing the trends in retail selling, Moyer emphasized store traffic is key. “It’s all about foot traffic. If a dealer gets foot traffic and runs promotions, he will sell rugs. That is why the furniture segment is so successful. Those stores get the foot traffic, especially during traditonal sale events such as Labor Day, Memorial Day and President’s Day.” Joe Barkley, executive vice president of Kaleen Rug, said the company would be able to generate higher sales in 2007, no matter what happens in the general economy. “Rug vendors who work hard are going to do well. Our industry is too small to be affected by overall changes in the economy. Anyone who says otherwise is using it as an excuse.” Barkley observed the rug business is still fragmented, with only a few large companies. “There is still opportunity for growth for both small and large vendors. This January, we had more appointments than any time in our history. This market was robust, and I think that creates great opportunities for the year as a whole.” As the only national market geared specifically to the rug business, vendors feel the outcome of the Atlanta January event sets the tone for the rest of the year. “Everyone puts a lot of energy into the January market. Everyone puts their best foot forward with fresh new merchandise,” said Austin Craley, vice president of sales and marketing for Momeni. Amir Loloi, president of Loloi Rugs, said, “Retailers and consumers are hungry for new products that are unique in the market. Our business continues to grow because we fill that need.” “We have good expectations for 2007, and 2006 ended on a positive note,” said Hari Tummala, executive vice president of Kas Oriental Rugs. “After a sluggish 2006, we think 2007 will be a lot better as consumer confidence returns.” Tummala said the company introduced a broad range of products and is making major changes in its sales and marketing structure. Satya Tiwari, president of Surya Rugs, noted, “We had our best appointment line-up ever, so Atlanta was a very robust market. Over the past year, we’ve expanded in a big way. Not only have we added a record number of products, we’ve also expanded our warehouse and executive offices.” In 2007, Surya expects to add decorative pillows and throws to its product mix and expand into new channels of distribution. “We recently named new national sales and national accounts managers. We’ve established the infrastructure to bring us to the next level,” Tiwari said. “The Atlanta market is a good barometer of our business,” said Lee Harounian, a principal of Harounian Rugs International. “There was a lot of excitement generated by this market, and we think that will help carry the momentum through 2007.” Steve Mazarakis, president of Hellenic Rug Imports, predicted “another tough year” for the rug industry and the national economy. “In this market, you’ll be OK if you’re aggressive. In 2006, we stayed on par with 2005, and we were pleased with that, under the current circumstances.” Lissa Wyman is the editor and publisher of Rugnews.com. |