NEW YORK -- For Part 2 of RugNews.com's exclusive First Quarter 2016 business roundup, we asked industry executives to analyze their best-selling products and categories, and to give their insights into new directions and fashion trends impacting rug design. They also share challenges they believe will impact the rug business in the year ahead.
Key contributors to the Surge in Q1 Rug Industry sales reported earlier this month (read full story), of course design, color and construction. But to keep up with the fast-fashion demands of consumers trolling the internet for home decorating ideas at all market levels, suppliers are investing in product development and stepping up with a constant flow of new looks more often - and faster - than ever before.
For Nourison, transitional and contemporary designs are still a growth area, co-CEO Steven Peykar said. "Cool colors and grey tones still dominate. We are seeing an increase in demand of cool colors with a splash of brights as the newest trend that is noticeable," he added.
Arash Yaraghi, principal at Safavieh, noted, "High-styled rugs in light colors, especially those that hit home with the lifestyles and decor preferences of the more casual yet fashion savvy consumers are most in demand. Timeless designs renewed in fashion-smart colors and finishes - that has been the recipe."
For Jaipur Living, tribal and Moroccan patterns remain popular, and take on new life with fresh colors and modern interpretations. "We're excited by new head-turning flat weaves and machine-made rugs that offer a vintage feel thanks to beautiful, distressed looks marked by subtle colors," said president Asha Chaudhary.
In terms of colors, "Airy blues and neutrals will be big," she predicted. "Both naturally beautiful and ecologically friendly, vegetable-based fibers such as jute and hemp are as aesthetically pleasing as they are sustainable, and will be highlighted in a variety of new product introductions this spring."
Cyrus Loloi, company principal at Loloi Rugs, said that a trend to combining synthetic yarns like viscose with natural fibers such as jute and wool is growing. "Using different materials and interesting constructions is the most the important change right now.
"Distressed or vintage looks as well as textural and organic styling are in demand," he said. Loloi is also excited about a new license, including rugs, pillows and throws, with the Joanna Gaines Magnolia Home brand that launched at High Point.
At KAS, blues, greys, and neutrals (including taupes) are still trending as well as products with pops of color in spice, gold, and turquoise, according to Santhi Yarlagadda, vice president of business development. "Spice market looks, old world, distressed, brights, and updated traditionals are hot and indoor/outdoor products are a big category for us right now," she added.
Lynne Meredith, vice president of product development at Surya, reported, "We're seeing a prevalence of botanical prints in muted greens and blues as well as soft, watercolor looks. Simple, clean-lined geometric designs are also trending. Vibrantly-hued rugs in a range of styles - from a beachy Boho aesthetic to looks featuring bold, abstract splashes of color - are popular and a great way to enliven a space.
"Expect to see lots of layered looks, such as flat weaves and natural fiber rugs paired together, along with sheepskins layered on top of another rug. Neutrals this season are being interpreted in fresh ways with texture remaining important to create visual interest and dimensionality."
The best-selling style trends for Couristan are more textured products with subtle colorations, Larry Mahurter, vice president marketing and advertising at Couristan, noted. "There are a lot of sales in neutrals, across the board, but especially in hand mades."
Challenges as diverse as styling
Depending on the company, rug suppliers are facing a variety of challenges.
The sheer volume of products can be an issue. Peykar explained, "The innovation, variety, and qualities that are available today from various sources are enormous. For a full-service company such as Nourison, it means we are carrying more lines and varieties than ever before in order to maintain and grow our business which creates a challenge both in terms of identifying the right product and maintaining inventories to maintain our traditional level of service."
The decline in oil prices has also created a concern. Oriental Weavers senior vice president Jonathan Witt observed, "Raw materials in the synthetic market have been a real challenge. While the price of petroleum has continued to fall until the past few weeks [late March], most manufacturers of synthetic fiber have reduced supply because production at the lower petro prices is not profitable for their business models. So the industry is facing a supply issue and also paying a greater price per pound."
A change in how retail does business is another factor. Surya's vice president of sales Seth King explained, "The home decor industry is fundamentally shifting. While brick-and-mortar will remain strong, the e-commerce channel is going to continue to grow, making it more challenging for (traditional) retailers. They are going to have to really focus on and sell service to differentiate their business and attract customers. It's going to become much more about providing a personal touch (to consumers)."
Noting that being in synch with current decor preferences is an ongoing challenge, Safavieh's Arash Yaraghi, also underscored that the ability to manage inventory effectively and efficiently is also critical. "Making sure that we always have our products ready to ship is an aspect of our business that we take very seriously and are constantly improving upon with new technologies and innovation," he said.
At Kas Rugs, a major challenge is [to achieve] innovation as the competition is trying to be everything to everyone. "We are continuing to find our niche in the marketplace and stay unique and trendy," stressed Kas Rug's Yarlagadda.
Mike Thompson, vice president of sales at LR Resources, noted that attracting the consumer is the greatest challenge. "We're in competition with home appliances and new cars more so than rug competitors," he noted.
Jaipur's Chaudhary said, "We're seeing a major cultural shift taking place in countries like India, where the handmade rug craft has been passed down for generations. Today however, with increased access to formal education, weavers are seeking other opportunities for their children." Jaipur works with its artisans through the Jaipur Rugs Foundation to help weavers. "This has helped us not only retain our artisan network, but to continue to grow it over time," Chaudhary said.
It is more difficult to find craftsmen to support growth in traditional handmade regions, Blake Dennard, senior vice president of Kaleen reported, adding, "Product will be moving to the machine made category. Kaleen now has machine made collections - tufted rugs for kids and a woven collection of indoor/outdoor styles. We have to move with the times."
Finally, world events are a constant concern and the coming U.S. election is seen by some as a distraction. "People are concerned with the upheaval in politics," noted Dennard.
Top sellers; trending weaves, designs
Capel introduces the jacquard Ashland collection to the successful Williamsburg licensed program.
COURISTAN
Couristan's hot-selling indoor-outdoor Monaco collection includes Alassio in Courtron polypropylene.
FEIZY 
Feizy's Burke range combines hand looming and hand knotting for a distressed look in wool and viscose.
HRI 
HRI uses hand knotted wool and viscose for the Decorative collection, of abstracts with 3-D looks.
JAIPUR LIVING 
Nolita by Kate Spade New York from Jaipur Living includes Seaside Stripe in reversible jute and wool.
KALEEN
Kaleen's hand-painted designs in the Brushstrokes range are hand-tufted of wool in trending colors.
KAS 
Seville by KAS features distressed traditional looks machine woven of heat set polypropylene frieze.
LOLOI 
Loloi's watercolor-inspired Dreamscape collection is power loomed in Egypt of polypropylene.
NOURISON 
Nourison adds this ice blue abstract to its popular Somerset range of machine woven polyacrylic yarn.
ORIENTAL WEAVERS 
Oriental Weavers introduces its abstract art inspired Galaxy range handcrafted of wool and viscose.
SAFAVIEH 
Safavieh's best-selling Evoke line offers transitional designs in machine woven polypropylene frieze.
SURYA 
Surya's trend-right Rivera collection is hand tufted of polyester in artful designs retailing at $309.
To view Part 1 of the First Quarter Rug Industry Business Survey, click here.