09202010 NY Market Week Business Story - New Showrooms Signify Growth of Mass Market Channel

NEW RUG SHOWROOM AT NY MARKET SIGNIFY GROWTH OF MASS MARKET

By Lissa Wyman

NEW YORK -- Every Spring and Fall, more rug showrooms open to woo mass-market buyers attending the New York Home Fashions Week. Whether the new showrooms are permanent or strictly on a market-to-market basis, it does signify the growth of rugs in the mass market channels of big box stores and regional furniture chains.

Until a couple years ago, the New York Home Fashions Market was known as the Home Textiles Market. In the rug business, most of the products shown in New York were "bath" and "scatter" rugs which were relegated to small spaces alongside sheets and towels and tablecloths.

Now, many stores have greatly expanded their rug assortments to include room size rugs which are sold at value-driven price points ranging from $79 to $199.

Equally important, vendors have also broadened their own product assortments to include traditional home textiles such as doormats, throws, pillows and top-of-the-bed items.

Feizy was celebrating the opening of its new permanent showroom at 230 Fifth Ave. during the recent New York Market Week. The company is no newcomer to the NY market, however. For several years, Feizy had shown in temporary space up the street.

Over the years, Feizy has broadened the array of products it has developed for mass market stores. In addition to rugs, Feizy also has throws and pillows. This season, the company entered the top-of-the-bed market with colorful patchwork quilts that are made in China.

"Our customers asked us to develop this area and we believe that success in this category is dependent on developing a strong fashion look. We developed a group of sophisticated quilts that are made in China and retail at competitive levels," said Cameron Feizy, vice president of sales.

The New York market was a success for Feizy, indicating the robust quality of the mass market.  "We had appointments beginning at the weekend and continuing through the week. Retail attitude seems very positive," noted Feizy.

In addition to the new showroom, this Fall's New York market signaled the introduction of the top-of-the-bed category for Feizy.

Kaleen was a newcomer to the New York Home Fashions Market, showing in a temporary space at 7 W NY. "We are kicking tires this Fall. When we go back to the office, we'll determine whether we will have a permanent showroom," said Joe Barkley, executive vice president of sales and marketing. "Our big accounts are what brought us here," he added. "They said they wanted us here."

Barkley observed that the way major accounts do business in New York is very different from what happens at other markets. "We've had a good education here." he said. "It's a real collaborative effort. The buyers tell us what they are looking for and we work together in developing future products and project."

The Linon rug division was also a newcomer to the New York Market, with a new showroom that opened at 230 Fifth Ave.

"Business is not bad, but you've got to be aggressive," said Steve Mazarakis, president of the Linon rug division.
"The mass market is doing okay and so is the top end of the price spectrum. It's the middle part of the market that continue to be affected by the recession."

Mazarakis, like many other producers with mass-market business, said that the $199 price point for 5x8 size remains the sweet spot for large furniture chains and big box stores.

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09.20.10