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Atlanta International Area Rug Market - Middle East turmoil, economy not enough to diminish optimism
Article Number: 4669
 
By Joe Fondetti
ATLANTA—Many exhibitors described their experience at Atlanta’s summer installment of the International Rug Market much like an important visit to the doctor. It wasn’t a lot of fun, but in the end they were glad they came.

The summer market seldom lures as many buyers as January’s, merchants said, and the fact that the economy is not yet showing significant signs of improving was reflected by a decreased amount of foot traffic through the AmericasMart Building 1.

Even Chas Sydney, senior vice president of area rug and external business development at AmericasMart, agreed that struggling economies in the U.S. and overseas negatively impacted the market.

“We’ll get over this,” Sydney said. “We believe the January market will be a good show.”

Like many vendors, Brian Mehl, director of sales and marketing of the Tibet Rug Co., said he expected July’s market to be slower than January and noted not coming to Atlanta is not an option. “So far, Atlanta is still the market for Oriental rugs.”

While there has been concern among some that a rejuvenated Las Vegas market might reduce the number of vendors coming to Atlanta, Mehl said there is no evidence that is happening. “I know a couple of people that went over to Vegas and I think they regretted it.”

That’s the kind of comment that makes Sydney smile.

Bringing exhibitors and retailers together is a key component of the market’s success, and in good times and bad, how that is done is a big part of Sydney’s focus.

“We do all we can for the exhibitors and the customers,” he said. That includes staying in touch by phone before the market lining things up.

And he said he was not surprised by Mehl’s comments regarding the Las Vegas show. “We know a lot of the exhibitors think of us as home.”

Most of the exhibitors at the show said they came in knowing what to expect with the economy still struggling. The industry typically watches for ups and downs in the housing markets, which appears to be slowly improving.

“There is a direct correlation between the uptick in the housing market and the uptick in our industry,” said Lucille Laufer, executive director of Oriental Rugs Importers Association, which sponsors the National Oriental Rug Show as part of the January market.

She foresees an improvement in the business later this year. “I just think people are tired of all the negative thinking. Things will get better but they are what they are.”

Mid East still importing

The good news for importers is there is still a good flow of merchandise into the U.S. despite unrest in Iran and Pakistan, Laufer said. “That situation is not affecting us at all. We had someone just come back from Pakistan. There are still plenty of beautiful rugs coming into the country.”

Sydney agreed the supply doesn’t appear to be an issue and said it was his understanding the U.S. State Department is also working with Afghanistan on export issues.

Dayln isn’t worried about imports. The company has been successful by largely throwing away the cookie cutter approach in the custom rug market, said David Adams, executive vice president. And while Dalyn might not be a household name, the company claims to be the world’s largest manufacturer of custom rugs, he said, all of which are made in the U.S.

The company came to the July rug market with its usual arsenal of custom rug offerings. That means pretty much if you want it, you can get it. “We offer a full range of custom rugs and the customer can go online and chose the size, the color and even the shape,” Adams said.

The typical 5 x 8 at Dalyn costs around $299, regardless of color or design. The company’s mainstays have been manmade fibers, but Dalyn plans to begin offering wool rugs in January.

Also in January, the company will nearly double its showroom in Atlanta to 6,000 square feet. “We are being very aggressive, and so far the market has responded,” Adams said.

The 30-year-old company unveiled three new collections in its stock rugs during July’s market and also remains one of the largest manufacturers of shag offerings through its Casual Elegance line.

Jim Thayer of Nature’s Loom said the July show was pretty much what he expected. Though the company had a good June, he wasn’t expecting too much from the market. “To say you had one good month during the summer is always nice.” The New York-based company imports high-end Oriental rugs.

He said he brought about half the bales he usually brings to Atlanta and brought less staff than usual.

High end still selling

Oddly enough, Thayer added, Nature’s Loom’s higher-end area rugs were selling better during the show.

Like many others, he is looking forward to an economic improvement this fall. “I’m hoping it gets better, otherwise the Oriental rug business is going to take a hit.”

Karastan unveiled two new collections at the summer show—Artworks, under the company’s Studio line, and Woven Impressions. The Woven Impressions offerings are made in the U.S. at the company’s North Carolina plant and come in five different schemes: Beaded Curtain, Diamond Ikat, Vintage Batik, Floral Lattice and Blossoms.

Anne Carley, rug marketing director for Karastan, said Woven Impressions falls under midrange pricing and may be perfect for homeowners looking to add to their existing collections.

She described the designs as transitional patterns with a broad range of classic color stories. “We know people are looking for ways to combine new offerings with existing color schemes. These designs allow them to mix it up and have fun, too.” Prices range from $199 to $1,799 depending on size.

The Artworks collection offers four largely floral patterns—Sea Island, Reverie, Summer Breeze and Malibu. The woolen and viscose rugs are hand-tufted in India and feature inspired botanical patterns in a variety of colors.

Bungalow Flooring appeared to be an anomaly on the sixth floor of Building 1 of the AmericasMart. Its main displays included doormats and other mats for kitchens and workspaces. “Yes, we’re a doormat company,” laughed president Rob Shriver.

Most of the company’s mats sell for approximately $40 for a 2 x 3. And, while they range in materials, all are made in the U.S., he said.

Bungalow also bills itself as a green company. Some of its factories are partially powered by used cooking oil, Shriver said. The company also uses recycled plastics in the manufacturing process. The mats are largely made from microfiber, polypropylene and PET.

And unlike manufacturers of larger rugs, Bungalow has weathered the recession relatively well, largely because of how the company sells as well as what it sells.

Shriver said it can make products quickly and ship them almost as fast, cutting down on inventory. Much of Bungalow’s business comes through catalog and Internet orders, and you won’t find any of the mats at Kmart or Wal-Mart. “If you want to buy a cheap mat, go there. Ours are a little more expensive but they’ll last more than one year.”

Shaw Living offered nine new designs in its Centre Street collection. The contemporary styles range from circles, blocks and stripes to silhouettes of organic life.

“The Centre Street Collection embodies what today’s consumer is looking for regarding high style and value,” said Kim Barta, brand manager for the Shaw rug division. “Nowadays, consumers want the most for their money and this is what Centre Street offers.

The suggested retail price is $289 for a 5 x 8. The rugs also come in an eco-friendly format. All of Shaw’s type 6 nylon products are recyclable back into new carpet or rug fiber again at the company’s Evergreen recycling plant.

Shaw Living also introduced a second wool collection, Pacifica, during the show. Barta noted the New Zealand wool line features an upscale design quality that includes hand-carving for additional dimension and detail. Designs run from large-scale zebra patterns to modern geometrics.

Celebrity sighting

Perhaps one of the busiest showrooms in the market was Capel’s. Actress Jayne Seymour was present to help launch her new rug collection as well as sign copies of her most recent book, “Open Hearts.”

Seymour and Capel have joined forces for the development of a contemporary rug collection to go with the Jane Seymour Home Collection she debuted in January 2007. The collection includes furniture, decorative home accessories, bedding, lighting and now rugs.

“This partnership is very exciting for me,” she said. “Designing my own home to reflect warmth and creativity has been a great joy and I feel very privileged to be joining Capel in making my designs available to others.”

Bud Young, Capel’s vice president of marketing, said the partnership “will combine quality Capel craftsmanship with Jane’s unique, casual designs for a truly exceptional product line.”


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Date
7/21/2009 8:51:34 AM
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