ATLANTA RUG EXHIBITORS  SHOWING LOTS OF NEW PRODUCT, DESPITE LIGHT TRAFFIC

By Lissa Wyman

ATLANTA - Rug vendors heading for Atlanta Summer Market will be showing a lot of new product, despite  expectations of low attendance. Although traffic will probably be light, vendors predict this will be a buying event.

Will the upcoming Las Vegas World Market Center show impact Atlanta attendance? It's hard to say. Summer market traffic has always lagged far behind the January event, so it's difficult to judge if  the missing retailers will  bypass this market for normal reasons or because they want to check out the Las Vegas show.

Most vendors agree, however, that Atlanta remains the industry's premiere market venue.

"Perhaps some home furnishings retailers in the west will skip Atlanta so they can  check out the Las Vegas show. But serious rug buyers come to Atlanta. This is still the center of the rug business,€VbCrLf said A. Leon Capel, a principal of Capel, Inc. "Everyone complains about the Summer market, but it's still extremely important. Retailers need to stock up for the Fall selling season.€VbCrLf 

Joan Catello, vice president of sales for Kas, said she expects the Atlanta Summer market will be fairly quiet, but that doesn't mean it's time for vendors to relax. "We always show a healthy amount of new products. Fashion changes are coming very quickly, and you can't get by with introducing new things only in January. You've got to keep the line fresh,€VbCrLf she said.

Smaller rug dealers tend to stay home in the Summer, but many exhibitors said they had more pre-market appointments this year than last.  "We certainly aren't  expecting much in terms of walk-in traffic,€VbCrLf commented  Austin Craley, vice president of sales for Momeni, Inc. "However, the Summer market gives us the opportunity to spend more  time with larger customers to develop significant programs and promotions. You can't do that in January, when the customers are five-deep.€VbCrLf

Despite the lack of traffic, rug vendors are not holding back in terms of new product development.

"Summer market is typically slower that January, but we continue to be optimistic. We think we have some very interesting new offerings, so this market is very worthwhile,€VbCrLf said Kim Barta, director of marketing for Shaw Living.

Shaw Living continues to increase its commitment to the Kathy Ireland licensing program.  Summer market goers will see the first Kathy Ireland Gee's Bend rug designs based on the critically acclaimed Gee's Bend quilt exhibition which toured the country last year. "The line represents a new direction for our Kathy Ireland- Shaw partnership,€VbCrLf Barta added. (For a full story on the Shaw-Kathy Ireland Gee's Bend line, click here)

Shaw will also be introducing its first imported machine made rugs, "and we have some other surprises in store, as well," said Barta.

As Summer markets go, we expect this event to be strong, said Ed Vairo, director of creative marketing for Nourison. "January was unusually good, and we think the momentum will carry over to the Fall selling season,€VbCrLf he noted.

In terms of styling trends, the contemporary category continues to gain strength. "As this segment matures, we are seeing the category diversify in several directions. Thus we have hard edge geometrics as well as softer, more casual looks. Each has a distinct audience. The same is true in traditional patterns. There are elaborate, formal looks as well as softer traditional designs,€VbCrLf said Vairo.

"We were pleasantly  surprised with how many appointments we made before market. Much better than expected,€VbCrLf noted Richard Siminou, vice president of marketing for Harounian Rugs International. "Serious buyers will come. We won't see as many housewives posing as designers.€VbCrLf

Satya Tiwari, president of Surya said he expects the best market ever in terms of order writing. "We expect a typical July market in terms of traffic, but we are still very enthusiastic,€VbCrLf he said. "We've introduced over 150 designs in the last six months and we are increasing our penetration in the furniture, rug specialty store and chain store channels.€VbCrLf.

July is actually a key market, said Amir Loloi, president of Loloi Rugs. "Even when the market is soft, people comem to see what is new," he said.

And buyers want those new items immediately, Loloi noted. "The biggest challenge for a supplier is to be in full production before the market even begins. It's not like the old days when delivery could take a year. Buyers don't want to wait anymore.€VbCrLf

There have been ups-and-downs at retail in the first half, but  rug executives are expecting to notch up a good sales year.

"We expect a good market. The year has been excellent for us in both residential rugs and broadloom as well as the hospitality market,€VbCrLf observed Ron Couri, chief executive officer of Couristan. "May was our biggest month ever and we expect to finish the year well ahead of 2004.€VbCrLf

Couri added that the dollar is getting stronger against the euro, which also bodes well for rug importers. "The dollar seems to be bouncing back,€VbCrLf he said.

"The Atlanta market was slow last year in terms of traffic, so we are not expecting too much in terms of attendance. However, we have appointments lined up with key accounts,€VbCrLf noted John Feizy, president of Feizy Import. "Business is good in general and we are well ahead of last year's sales. So we're not complaining.€VbCrLf

Business has been pretty good this year, executives say. However, several noted that retail continue to be spotty. This year, like last, has lacked continued sales momentum, several vendors noted. "Things have been down for so long, there's no where to go but up,€VbCrLf said Michael Harounian, a principal of Ebisons Harounian. "We've already booked several appointments with strong retailers, so we think the market will be a success.€VbCrLf

"We have very high expectations for Summer market, " commented Rafi Amirian, vice president of marketing for Shalom Brothers. "Our appointments are actually running ahead of January,€VbCrLf he added.

Amirian said that Shalom is entering a new era, with greater emphasis being placed on the middle price ranges. "Dealers are coming to see the new Shalom Brothers," he said.

 Steve Mazarakis, president of Hellenic Rug Imports, said the company's  showroom is being remodeled and rugs have been re-hung, reflecting Hellenic's expanded  merchandise mix. "Despite the slow attendance in the Summer, we will still  have a lot of action in the showroom. Our goal is to make Hellenic to be the most exciting place to visit at every market," said Mazarakis.

"I think we'll see the normal Summer market patterns in Atlanta,€VbCrLf said Bob Kirby, president of Jaipur Rugs. "The traffic will be quiet, but the serious buyers will be there.€VbCrLf

For the past two Summers, the Atlanta International Rug Market has overlapped with the International Gift & Home Furnishings Market. (In the Winter, the two shows do not overlap). Many rug vendors are wooing the gift and home accent buyers with special promotions and expanded product offerings. "We have done a major e-mail promotion aimed at  gift show buyers and we are introducing new products geared to that distribution channel,€VbCrLf said Steve Mazarakis, president of Hellenic.

 Several new rug showroom are opening this Summer at AmericasMart, and some familiar names will be missing this season. Mohawk Home has vacated its sixth floor space. The Mohawk Select line is being exhibited in a third floor showroom next to Karastan, a sister company. Masterlooms has also left the Atlanta Market Center.