| SAFAVIEH IN
MULTI-YEAR LICENSING
CONTRACT WITH MARTHA STEWART | 
Martha Stewart
|
NEW YORK - Martha Stewart Living Omnimedia and Safavieh have signed an agreement under which Safavieh will make and market a full line of Martha Stewart-branded rugs.
The licensed collection will debut at the Atlanta International Rug Market in January 2007. The Martha Stewart rugs will include both machine made and hand made constructions and will retail from $200 to over $3,000 depending on size and weave.
The line is being created by the MSLO design team with Martha Stewart's guidance. The rugs will be targeted to independent retailers, including about 400 upscale floor covering and furniture dealers across the country, said Arash Yaraghi, a Safavieh principal.
"We are taking the high road with this collection. They will not necessarily be expensive, but they will reflect the high taste levels and simple aesthetic which identifies Martha Stewart branded products,?Θ╝VbCrLf Yaraghi told Rugnews.com. "The rugs are not going to be sold in K-Mart or other mass market and discount stores,?Θ╝VbCrLf he emphasized.
"Martha Stewart is taking an active role in the development of this collection. She has visited our New York showroom and we spent several hours discussing design ideas. She is an avid collector of rugs and understands rug design,?Θ╝VbCrLf Yaraghi noted. "We see eye to eye on how this collection will be developed and marketed. We are looking forward to a fruitful partnership.?Θ╝VbCrLf
The multiyear contract gives Safavieh the exclusive license for Martha Stewart-branded rugs, said Yaraghi. "We intend to do everything we can to enhance the Martha Stewart brand with fine-quality rugs targeted to her lifestyle customers, and we are committed to creating a collection that lives up to Martha Stewart's unparalleled cachet in interior design,?Θ╝VbCrLf Yaraghi said.
The rugs will coordinate with the Martha Stewart Signature furniture line with Bernhardt, which is sold at independent furniture dealers nationwide. The Signature line includes furniture by Bernhardt. The rug collection will encompass hand-made and machine-made items in a full range of sizes and styles, and will be made in Savavieh's facilities in Tibet, Nepal, India and Pakistan.
"Rugs are an important design element in the composition of a home, be it a small entryway or a large living room. We are designing an extraordinary collection of rugs based on our archive of ideas and singular patterns, some of them inspired by rugs that we have personally been collecting for decades. No matter what your home d?Γ©cor is, you will be able to find a Martha Stewart area rug that will help complete that room, adding comfort, warmth and impeccable style,?Θ╝VbCrLf said Martha Stewart, MSLO's founder.
"Rugs are a perfect addition to our expanding merchandising program. The products will further round out our furniture assortment and complete our furniture galleries, enabling consumers to decorate their home in true Martha Stewart style,?Θ╝VbCrLf said Robin Marino, president of merchandising for MSLO.
Through the MSLO partnership with KB Home, the rugs are also expected to be featured in model homes in Martha Stewart-designed communities throughout the country.
Earlier this month, Federated Department Stores and MSLO signed a multi-year distribution partnership to develop an all-new line of Martha Stewart Collection home merchandise exclusively for Macy's. That product line will be introduced to Macy's stores in Fall 2007. The department store chain is also interested in the new rug line for fall 2007 and beyond, according to Martha Steward Living.
Commenting on that statement, Yaraghi said that Safavieh is already a vendor for Federated store. "If we make beautiful rugs, Federated will carry them,?Θ╝VbCrLf said Yaraghi. "We are looking forward to utilizing our styling capabilities, sourcing and quality to produce rugs that will complement other products in the Martha Stewart Signature Collection,?Θ╝VbCrLf Yaraghi said.
Earlier this year, Safavieh entered the licensing arena with a rug collection designed by Thomas O'Brien, and recently also entered the wholesale furniture business.
Safavieh is exhibiting furniture and rugs at the High Point market in a new Market Square showroom, spaces 120 and 123.
For a related story on Martha Stewart's earlier experience with the floor covering industry, click here.
4.23.06