Karastan’s new Wood Essentials collection is a blend of solid and engineered wood.

By Steven Feldman
Colorado Springs, Colo.— Karastan is venturing into uncharted territory. At its biennial meeting held here earlier this month, the best-recognized consumer flooring brand announced it was extending its reach beyond carpet and rugs with a new collection of solid and engineered hardwood that befits the high-fashion element Karastan has conveyed for 80 years.

Wood Essentials is the umbrella that will cover the two collections. The solids fall under the Natural Expressions moniker while Classic Elements is the grouping of engineered products. Both are comprised of 24 SKUs.

According to David Duncan, vice president of marketing, hard surface may be new to Karastan, but leveraging the brand certainly isn’t, citing a successful track record with its cushion and runners. “It is a natural tie-in for Karastan to be a total flooring brand.”

Duncan noted that Karastan has been flirting with the idea of entering the hardwood flooring arena for the last three years. “It’s the growing part of the market, but we wanted to do it right,” he said. “Right” meant focusing on meeting customer needs from a geographic standpoint, and launching products that would convey high end. “We wanted it to be consistent with where we are in the marketplace with Karastan carpet and rugs.”

It was a process that could not be completed overnight. “Once we determined this was the strategic position we wanted to occupy, we went out and asked customers what products we needed to have,” he said. “We went across the country and determined each area’s sweet spot. We looked at who owns the market, what are their competitive advantages, and how we could take market-share. We wanted to do it the Karastan way.”

The result is a collection every bit as fashionable as its soft surface portfolio. Natural Expressions, the 3/4-inch solid, features handscraped, hand-distressed patterns and planks unlike anything on the market today. Three 24 x 24 parquet patterns and a five-inch-wide plank constitute the line. Each is available in six colorways. Three species include black walnut, American cherry and Northern red oak.

According to Lindsey Waldrep, brand manager, hard surface, the patterns can be installed throughout a room or used as insets. “It gives the consumer opportunity to customize her home,” she said. They will retail for $50 a foot with the plank expected to sell for around $20, she said.

Waldrep also touted the benefits of Natural Expressions’ hand-waxed, no-luster finish versus the aluminum oxide finishes so prevalent today. “If there is any damage to the floor, just touch up the color and re-wax,” she said.

On the engineered side, Classic Elements is a grouping of five-inch-wide, handscraped planks in four species. The line offers three levels of scrape from soft to aggressive. Unique stains create metallic or drybrush looks. Other styles include a French bleed with blackened edges and character looks with worm holes. “Retailers have told us the line is unique and will differentiate them from the competition,” Waldrep said. Retail price points on the engineered side range from $12 to $18 a square foot.

Duncan told FCNews that aside from product, Karastan learned the importance of service in the hard surface business. As such, the products will be domestically produced and 100% made to order. It will also be a controlled rollout. “We are going to start in the Southeast in the first quarter of 2007 with very select retailers then slowly go nationwide. So wherever we position the product we will be sure to provide the best service.” He expects the program to have full U.S. penetration sometime in 2008.

Phil Koufidakis, president of Baker Bros. with eight locations in Arizona, believes the wood launch is an “excellent” idea for Karastan. He told FCNews the product fits the Karastan brand, and the ability to have controlled distribution makes it very viable. “Plus, it’s something you won’t find on the Internet.”

Steven Haber, president of G. Fried Flooring in Sarasota, Fla., gave an even stronger endorsement. “This is the best thing I’ve seen Karastan do in many years,” he said. “It makes a statement. You won’t find a product that looks like this in any wood store.”

Other retailers, like Steve Lewis, president of Lewis Carpet One in Northbrook, Ill., believe the wax finish is a strong selling point. “It gives the wood a more Old World, authentic, traditional look,” he said, adding that he especially likes the fact Karastan is not rushing to market. “This collection consists of sellable and differentiated products.”

A real ‘Treasure’

The Karastan meeting served as the “official” debut of the American Treasures collection, which takes the brand from traditional to transitional and maybe even contemporary designs. It’s all about expanding the customer base, Duncan said. “We go after two target consumers: baby boomers (ages 41-60) and Generation X (ages 30-40). The baby boomers are defying age; 50 is the new 40. So everything we are doing marketing-wise is to go after that youthful spirit of that 34 to 45-year-old customer.”

American Treasures is an example of the design influence younger consumers are seeking at the high end. “The Karastan consumer is not a Rooms to Go customer,” he said. “They like style and like to do it on an individual basis. So the more variety in style and design we can bring to the marketplace, the more we endear ourselves to our targeted consumer.” He cited Capsilon in American Treasures as an example of addressing “modern sensibility” with multiple colors and linear patterns. The line is constructed of space-dyed worsted wool and retails for about $100 a square yard.

Retailers immediately saw the value in American Treasures. “Karastan is addressing a market that already exists— the younger customer—through the more transitional designs,” Baker Bros.’ Koufidakis said. “And the styling is dead on.” And Susie Axelrad, vice president of merchandising for Lewis Carpet One, agreed there is definitely a need in the marketplace for this type of collection.

In other news:

* Karastan has brought the revolutionary SmartStrand with DuPont Sonora fiber to its products in four distinct styles: Coastal Elegance, a “friezetti” shag; Natural Desire, a patterned pindot; Earthen Magic, a cable thick-thin and Essential Living, a texture product. “Karastan is bringing fashion to the SmartStrand fiber system,” Duncan said. “Smart-Strand two years ago was probably the single biggest introduction in Mohawk history. It combines the best of durability with the best in engineered-in stain resistance. It’s been our most problem-free product in terms of claims and is truly an unbelievable product.” The four launches retail for $45 to $55 a square yard, carpet only.

* Karastan recognized three retail icons with the prestigious Lifetime Achievement Award: Walter Moomjy, Einstein-Moomjy; Don Swanson, Marshall Field, and John Millar, Avalon Carpet & Tile.

* Mariska Hargitay, star of Law & Order, SVU, is the new Karastan personality and will be featured in print campaigns and Internet initiatives. “She was chosen because female consumers love her,” Duncan said. “Fifty-one percent of women between the ages of 35 and 54 consider her ‘one of their favorites’ in prime time TV.”

* Karastan’s installation certification program, launched 11 years ago, is being refreshed by CFI’s Jim Walker. “My belief is that installation is so critical at the high end,” Duncan said. “We invest the money because the only way the consumer will have a positive experience is if her carpet is installed properly.” He added that, to date, more than 3,000 installers have been certified via hands-on and written tests.

* Thom Filicia, star of the Bravo series “Queer Eye for the Straight Guy” and one of House Beautiful’s Top 100 Designers in America, is partnering with Karastan to take its Decorating From the Floor Up program national. The program involves bringing in editors from shelter magazines for in-store presentations on design tips. “It’s a win for the brand, a win for the retailer because it gives it the opportunity to differentiate from everyone else in town, and a win for the consumer because she wants decorating advice,” Duncan said.

The national component includes six major markets next year and will only be held at venues that can accommodate a larger capacity.