828’s Watercolors collection was well received.

By Sarah Zimmerman
Atlanta—The annual summer International Atlanta Area Rug Market, held earlier this month here at AmericasMart, was all business this year as manufacturers unrolled their latest and greatest products to answer today’s fashion trends.

Fashion was forward, both in color and design schemes, with focus shifting from price points to style in line with the industry’s slow economy. However, exhibitors held their heads high, looking to the future and continuing to pump out new products and revamping old, with a common “transitional” thread running through the market.

“This show has been on par with a typical summer market,” said Chas Sydney, executive vice president of AmericasMart Atlanta. “January is the granddaddy market where July is simply a filler.” Considering, too, the economic conditions surrounding the home building industry and increasing use of the Web as of late, he noted, this has been a respectable event.

What’s new?

Several stories stole the spotlight at the recent market—black and white, naturals and hints of reds and greens—while others maintained their previous fashion statement status—blue and brown.

“Our aim with the collections showcased at this market, is to be timeless and timely,” said Anne Carley, director of rug marketing for Karastan. “We like to keep timeless designs but use color to pull them into a timely period.”

Focusing on this, Karastan’s recent color statements exemplified a fresh mood that inspires personality and style. The company incorporated new neutrals with spots of modern color mixes—red, maize, soft limestone green and putty, watery blue, mocha, amber and brick red, and pale ivory and pure black—across three collections—Original, Sierra Mar and Shapura—introducing Antique Red Oushak, Tiana Glacier Blue and Jakarta Batik, respectively.

“Price is no longer an issue, so this is the time to bring on color, fashion and design,” she explained. “This is the time to promote and enhance luxury items to build the average retail ticket, not cut it in half.”

David Moyer, general manager, Mohawk Select, noted, “The key market has been good but is softer overall in comparison to last year’s climate.” He reasoned foot traffic has been down. “We’ve noticed some West Coast dealers skipped Atlanta this year.”

With regard to product, Moyer said, “Pillows are big.” The company’s showroom accented its new rug selections with an introduction of color-coordinated pillows and throws. “Retailers are seeing the importance of doing something different with showroom space. Add-on products like these allow them to design on a dime, as products are dispensable with changing trends.”

Mohawk featured approximately 25 new products with the brown and blue story, which has been a best seller for the company. The mill also added some reds to its collections and introduced plenty of contemporary and transitional pieces.

Julie Rosenblum, brand manager for Nourison, agreed that change and continual thinking out of the box are what separates and drives sales. “Rugs have become chameleons, art for the floor.” People are coordinating room schemes with rugs today, not vice versa, she noted. “So, we have to stay on track with a positive outlook and move ahead with business.”

She said the hot colors for fall include greens, browns and rusts, and texture is huge right now. “Products today have to have a twist, and texture is just that.” With this in mind, Nourison introduced several collections at the July market, including: Fantasia, Horizon Twines, Hamilton House and Dimensions. She added the company’s Liz Claiborne Collection is still doing very well with its target audience—young, married women with kids, who still want their homes to show their sense of style. “We always try to find niches where we can own that business. Liz Claiborne is an example of that.”

Safavieh’s Arash Yaraghi also prides himself on the company’s constantly expanding arenas. “In business there are always ups and downs, we plan for growth regardless of the current market.” Though this year has been slow for most, it’s this mindset that has enabled Safavieh to increase sales in the first half, according to Yaraghi. “With our recent release of the Martha Stewart and Thomas Obrien collections, expansion in our sales force and placement with new dealers we’re doing exceptionally well,” he said.

As the new kid on the block, Amici Imports is doing increasingly well for itself, too, according to Charles Cashin, executive vice president of sales/marketing. “We’re entering our fifth year and continue to grow rapidly.” He noted this persistent growth is, in part, due to more developed, tighter product lines. “There’s always business out there, and retailers are now starting to see us and our advancements.”

Amici’s sixth floor corner showroom stood out in bold black and white, featuring additions to its hand-tufted Ponte Vecchio collection and Tibetan hand-knotted Capri collection. “Our theme was contemporary and transitional,” said Eva Di Adamo, executive vice president of merchandising/design. “It’s all about layering and combining various aspects together.” She explained the latest add-ons were inspired by the 1930s and portray layering graphics with a twist of art deco in black and white designs with a retro flare.

Shaw Living added no traditional rugs this market—look for them in January—but introduced several modern, casual and transitional pieces. “We constantly like to give retailers and consumers new options, so we look at trends and try to stay on top and ahead of them,” said Kim Barta, brand manager. “We’re expecting the second half of this year to pick up with new introductions.”

One important category Shaw focused on recently is going green with its introduction of two new recyclable collections—Premiere and Natural Expressions. As part of the company’s Green Edge cradle-to-cradle design solutions, the new rugs are made from Evertouch nylon giving the customer environmentally friendly products that maintain fashion and function. Premiere is a casual collection that features light and dark neutrals, serene beiges and soft greens. Natural Expressions focuses on warm, neutral colors of gold coast, white sands, sea grass and sisal sands.

Kaleen’s Joe Barkley, executive vice president, said obviously the industry is down, but noted that business is up for the company. “We started going after varying channels of distribution, and it’s equaled growth for us.” He attributes this to several things: an aggressive sales force expansion, hard work, new products and a good offense. “The company that wins is the company that works hard, and our guys work hard. We expect to grow. If you dwell on the bad economy, you get what you get.”

Barkley noted the company’s new products continue to be well received, including Kaleen’s latest additions which feature recent trends such as larger designs, and a new color palette—pestos, salsas and spa blues. “These colors are moving to the forefront of rugs today, transforming them from an accessory to a starting point.”

Business looks to the future

Traffic may have been slower than usual at the Rug Market this month, but attendees’ attitudes and business dealings were great, according to AmericasMart’s Sydney. “People come here to do business, and there was a lot of buying,” he said. “This is also the most effective market to work because of how it is categorized.”

Retailers present at the market agreed. Gary Sissel, owner of Nebraska Furniture Mart, found the market a huge success. “We accomplished all of our goals for the market and were delighted with the exceptional smoothness of check-in and courteous AmericasMart staff.” He was also impressed with exhibitors’ showroom designs, breadth of new transitional pieces and the amount of individual attention he received.

Sy Mahfuz, owner of Persian Rug Gallery, chimed in those that went to the market got great deals. “I look to fill in items I don’t have on my floor and look at the new products, and during the July market I get plenty of attention to accomplish both.”

So, although footprints seemed scarce, the Rug Market came through prosperous and is even expanding in 2009. “We are in the process of a controlled expansion, which will be in effect in January 2009,” Sydney said. AmericasMart plans to add a fourth building to the complex, which will allow building one (where the rug market is) to display only home decorating products. Though the expansion will not directly affect any of the rug showroom floors, it will contain the home building industry, possibly increasing traffic for the Rug Market.