By Lissa Wyman

SOMERSET, NJ -- Kas will kick off its 30th Anniversary year during the Atlanta International Rug Market with hospitality, market specials and innovative new products. In fact, it is the commitment to innovation that has established Kas's reputation as a style leader  through three decades in the tumultuous rug business.

In a wide-ranging recent interview with Kas executives, it was typical that the company is looking forward to new challenges rather than back at past events.

The Kas executives are particularly excited about new products to be launched in 2012 and through the coming years. 

"Our focus is on hand tufted, hand loomed and machine-made products in the middle price range," noted Hari Tummala, vice president. "Even with all the challenges in the marketplace, we are seeing a lot of product innovation and we work closely with our suppliers to bring these unique looks to our customers."

Both Tummala and Rao Yarlagadda, president of Kas, stressed that Kas has a long history with its suppliers. "We make a commitment of trust with our manufacturers and some of our suppliers have been with us almost from the beginning," said Yarlagadda.

When the company began, it specialized in hand made flat weave dhurries and hand knotted rugs. Today, the company is primarily known for hand tufted and machine made rugs.

Kas entered the machine made category11 years ago, and now that segment accounts for approximately 50% of the business.

Most of the hand tufted rugs are from  India, while machine-made products come from China, Turkey and Belgium.

"We are always on the look-out for unique products," said Tummala, "And we are seeing a great deal of innovation coming on-stream in hand finishing and new textural effects."

2012 Introductions

"We will be introducing over 250 new products and more than eight new collections in January . Many will be in stock and ready to go for immediate delivery," said Tummala.

Two of the new collections will bring the Kas design flair to the indoor-outdoor category.

 Kas Horizon indoor-outdoor collection is machine made in Belgium. UV-treated polypropylene  with flexible backing. Suggested retail price is $199 in 5x8 size

The Horizon collection is a group of machine made, flatweave indoor-outdoor rugs. "Unlike many indoor-outdoor machine made rugs which are made in two or three colors, Horizon is made on10-color looms," noted Wendy Reiss, key account manager of sales and marketing.

Meridian collection is hand hooked in China in high-low texture. Suggested retail is $299 in 5x8.

On the hand-made side, the Meridian collection of indoor outdoor multi texture rugs are hand hooked in China in hi-lo construction. They are made of UV treated polypropylene with indoor/outdoor back. 

Both the Horizon and Meridian collections feature the over-scaled energetic patterns that  have become the unique Kas signature look.

The entire rug business is changing rapidly, and styling preferences are driving much of that change, according to the Kas executives.

"Patterns and colors are becoming brighter and bolder, but at the same time, we are seeing less of the hard-edge modern designs we saw a few years ago. Contemporary is becoming softer and more casual," said Yarlagadda. "Even traditional patterns are becoming more contemporary. The current popularity of Ikat designs certainly reflects that trend."

Distribution Channels

While the past few years have seen the rise of the mass market channel, Kas remains deeply commited to its core customers, the independent retail stores.

"It's been a tough few years for independent stores, but we see an opportunity for growth in the strong companies that make up this segment," said Reiss.

The Internet channel is another area of opportunity. "You  can't ignore the Internet and you can't deny its power," Reiss added.

Looking forward, the Kas executives see future opportunities in multi-channel retailing.

"We see more and more bricks and mortar retailers showing interest in developing an Internet presence," noted Santhi Yarlagadda, vice president of business development.

"They are finding it easier to get into Internet selling and they are using their natural advantage as bricks and mortar retailers to build consumer confidence in their on-line sales," she said.

The Future

Over the next five years, the Kas executives see continued changes in the business.

"In five years, the business will be totally different," said Tummala, "Hand knot rugs will continue to decline in importance, but manufacturers of both machine made and hand tufted rugs will develop new products with add-on value for the consumer."

The Kas executives also predicted that the industry will continue to grow, despite continued tumult at both the retail and wholesale levels.

"It's a matter of survival of the fittest," said Tummala. "The brick and mortar stores that survive will be stronger than ever and will actually grow in importance," he predicted.

Yarlagadda and Tummala also see distribution channels continuing to move to value and mid-range products. "Our goal is to continue to serve the high volume part of the business. Not only must we change with the times, we must  be leaders of change," said Tummala.

Check out the Kas 30th Anniversary festivities and specials, click here.

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