ATLANTA -- In the run-up to the 2016 Atlanta and Las Vegas summer markets, a historically slow period for the rug industry, executives remain optimistic, and discuss their strategies to attract buyers shopping for the fall buying season.
However, current events -- ranging from the tragedies in Orlando and Dallas to the uncertainty surrounding the upcoming presidential elections -- are throwing a minor wrench in a market that by all accounts should be booming, given the strong new housing market (the hottest since 2008). Still, industry players remain bullish, anticipating a strong summer and busy fall 2016 to make up for what some say was a sluggish spring.
 | "The momentum with Magnolia Home by Joanna Gaines is unprecedented."
-- Cyrus Loloi, Loloi |
"Coming off the heels of our best-ever High Point Market, we're excited for what the summer markets will bring," said Cyrus Loloi principal of Loloi, which recently presented its popular new license program with HGTV celebrity Joanna Gaines. "The momentum with Magnolia Home by Joanna Gaines in particular is unprecedented; the buzz continued at Dallas, and we expect more of the same at Atlanta and Las Vegas Markets."
Business had been a bit tough for some retailers (prior to High Point market), so they came to Capel' showroom "looking for innovative products that offered a sharp value and a fresh look," said Cameron Capel, vice president of national accounts for Capel Rugs. The company, which presented a number of new collections, recorded big gains in attendance and sales at High Point, and expects the excitement to continue at summer shows, she reported.
 | "Retailers are looking for innovative products that offer sharp value and a fresh look."
-- Cameron Capel, Capel Rugs
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"We had a great April market: Our introductions were well received across the board. We've been listening very closely to our customers and sales staff, and that has helped us create new designs that meet specific needs emerging in the market. This collaborative approach gives us an even better understanding of what excites and motivates today's consumers," Capel said.
Despite typically being quieter markets than those during the fall, winter and spring, summer should move rug importer one step closer to their goals, with several vendors offering special promotions, debuting new designs and collections, and including enticing value-added products.
"In our experience, summer markets are typically a slower time for the industry. They feature a promotional mindset along with a focus on buying for the fall in a way that will close out the year with a bang," said Reza Momeni, of Momeni Inc., which is focusing on its in-stock and new Affordable Luxury campaign during July (read full story). "So while new products are always exciting, the items being purchased are those that are in stock before October."
 | "Summer markets feature a promotional mindset along with a focus on buying for the fall in a way that will close out the year with a bang."
-- Reza Momeni, of Momeni Inc. |
Added Mike Thompson, vice president of sales and general manager of LR Resources, "We are optimistic about July markets, We had an excellent January 2016 and very good summer markets last year. The retail market has gotten progressively better over the last year, and we are hoping it will maintain and get even better.
 | "All retail channels are pretty optimistic about the 2016 fall selling season."
-- Mike Thompson, LR Resources |
"In talking to retailers, we find that in all channels they are pretty optimistic about the 2016 fall selling season," he continued. LR Resources is offering a fresh selection of designs, including its hand-loomed Naturals collection, hand-knotted Indo Oushak designs from the Kareena collection, and the machine-made polypropylene Soft Shag range (read full story).
 | "We are expecting record-breaking summer markets." -- Blake Dennard, Kaleen |
The Dalton, Georgia-based Kaleen, which recently introduced a children's rug collection and the first stand-alone catalog for its growing indoor-outdoor lines, is also predicting a positive summer selling season. "Based on the turnout we saw at High Point, we are expecting record-breaking summer markets in both Atlanta and Las Vegas," said Kaleen's Blake Dennard, senior vice president. "While summer markets are usually slower, our appointments are looking good and we have several new collections to introduce."
Kas Rugs' Wendy Reiss, vice president of sales and national accounts, said that Kas has "good, solid appointments" slated, but pointed out that spring was slower than expected and summer markets tend to have less traffic than fall and winter shows. "We have gotten mixed reviews from retailers as to how things are going right now," she said.
 | "Usually, during an election year sales growth is a given, but this year is no ordinary election." -- Wendy Reiss, Kas Rugs |
"Usually, during an election year sales growth is a given, but this year is no ordinary election, so there have been some mixed reviews. Overall, sales have been good and steady and we anticipate larger percentages as we head into our busiest season, third and fourth quarter. We are on target to have a very good year."
In fact, in a recent survey of bricks and mortar retailers conducted by RugNews.com, rug buyers confirmed Reiss' observations, pointing out that while 2015 was a robust year, the first part of 2016 was touch and go for some based on regional difference and current events.
 | Joe Barkley of Amer Rugs said a special retail appreciation sale for Main Street retailers and brick and mortar stores helped propel sales. |
"We go into every market bullish," said
Amer Rugs' Joe Barkley. "The retail market in general slowed down somewhat in March or April. But June started off pretty well and we are hoping that Atlanta and Las Vegas continue to be strong." To insure buyers' top of mind awareness prior to market, Amer ran a retail appreciation sale from May 16 through June 30. "We offered a five percent discount for non-discounted and non-internet accounts -- Main Street retailers and brick and mortar stores. That was really been well received," Barkley said
. "Buyers are generally positive and are looking forward to a good summer market season," noted Seth King, vice president of sales at Surya. "We look forward to building on the momentum from this spring's High Point Market and anticipate a strong turnout of buyers and designers visiting our showroom.
 | "As more consumers look to create total lifestyle looks within their homes, they're turning to rugs and other accessories." --Seth King, Surya |
"As more consumers look to create total lifestyle looks within their homes, they're turning to rugs and other accessories to do that. And, that's what we offer -- the ability to easily build cohesive spaces that express the unique style of the consumer -- no matter what their budget or decor preference," continued King.
Cyrus Yaraghi, principal at Safavieh, said the company anticipates not only a strong finish to 2016 but that it will carry over into the following year. "Retailers are optimistic about the prospects for the remainder of this year and into 2017, based on strong demand and increasing sales for our home furnishings.
 | "Our salespeople tell us that their clients want to see more product lines that spring from the fashion and lifestyle preferences of their customers." -- Cyrus Yaraghi, Safavieh |
"Our salespeople tell us that their clients want to see more product lines that spring from the fashion and lifestyle preferences of their customers," Yaraghi continued. "These tend to be high-touch, high-styled products that seamlessly blend antique character with the casual-chic look of modern, millennial lifestyles (read story). Buyers want heirloom-looks, a luxurious feel and style that excites the senses; and they know that Safavieh will deliver on all counts with the highest quality at the most competitive prices in the industry."
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Greg Jordt of HRI noted that the company's color stories and focus on higher quality products attracted buyers from mid- to high-end furniture stores. |
At Harounian Rugs International, Greg Jordt, executive vice president, sales and marketing said the company expected to continue record-setting growth in 2016. "We're doing especially well with mid to high-end furniture stores, design studios and to the trade showrooms and we are well positioned to capitalize on the market trend back to quality made product that exceeds the consumer's expectations."