REPORT FROM NEW YORK: BIG BUYERS COME OUT IN FORCE; MASS MARKET OUTLOOK VERY GOOD
 At Orian: Barry G. Kelley, vice president of marketing and merchandising for Orian, with Bob Wilson, buyer and Heather Tabor, allocation analyst, for Fred's, headquartered in Memphis.
By Lissa Wyman
NEW YORK-- The art of the deal is more important than the art of the rug at the New York Home Textiles Market. Mass market stores were flexing their buying muscles this week as they looked for items to fill specific price points and get the best pricing on volume purchases.
Best sellers were indoor-outdoor rugs, which have now become a full blown category of good-better-best products, with retail price points ranging from approximately $79 up to $299 in 5 x 8 size.
Most of the vendors who have been showing nearly non-stop since January confessed they have market fatigue, but at the New York show, the product mix is somewhat different as bath and small scatter rugs are introduced to home textiles buyers.
"We see buyers here who don't attend Atlanta or Las Vegas, and they are very important to our business, so we'd better bring them items that are fresh and new," said Jonathon Witt, executive vice president of marketing for Oriental Weavers of America.
Witt added that buyers are upbeat and "there's been a good energy running through all the markets this season."
For some companies, such as Carpet Art Deco and Orian Rugs, the New York Home Textiles Market is their most important event.
In fact,New York is the only US market for Carpet Art Deco, headquartered in Montreal.
"Although area rugs are still our number one category, we are expanding significantly into the bath rug business, " said Michel Melki, vice president of operations for Carpet Art Deco.
Melki stressed that being first with unique products is a key ingredient for the mass market business. "We have a full staff which follows retail and fashion trends. It's very important for us to be first in the market with fresh products," said Melki.
Carpet Art Deco makes woven rugs in Canada, but is also expanding its imports from both China and India.
In area rugs, Melki said that buyers were particularly interested in hand tufted rugs retailing for $129 in 5x8. "These are killer products," he said. "Imagine a hand made rug that retails for less than most machine made items."
In the bath category, Melki said that Carpet Art Deco has developed shaggy washable bath rugs made of bamboo fiber. Another new product that has received a lot of interest is a long, soft shag made of a new microfiber.
With last week's appointment of Paul Sullivan, Orian now has a new sales, marketing and product development team in place and the company is poised to make major penetration in both the mass market and specialty store channels, according to Barry Kelley, vice president of marketing and merchandising.
"We've received outstanding response to our new 12-color, 1.5 million point Shakespeare line, which will retail for $199 in 5 x 8," said Kelley. Although Orian is best known for traditional design, the Shakespeare collection covers a broad spectrum of relaxed contemporary styles as well as classics, he noted.
Another home run at Orian was the company's Patio collection, a woven group retailing for $99 in 5 x 8 size. Patio comes in a wide range of natural looks and contemporary and botanical styling. "We test-marketed this product with a major retail chain and they said it was the most successful floor covering test ever. We're now ready to roll it out," said Kelley.
Jim Thompson, vice president of sales for Natco's Central Oriental division noted that The New York market has turned into a very good show. "It's a great ending for the market season. Buyers are upbeat about business for the rest of the year," he said.
Thompson said buyers were "flipping over" the company's sneak preview of an indoor-outdoor collection which duplicate the look of high end seagrass rugs. It will retail for under $100.
Kas Oriental rugs is getting more deeply involved in the mass market business and last year doubled its Textile Building showroom. "We already sell many mass market stores, and we want to get even more involved with this segment of the business," noted Rao Yarlagadda, president of Kas.
"These buyers for the most part do not come to Atlanta or Las Vegas or High Point, so the New York market is critical to reach this channel."
At Capel, Allen Robertson summed up the market season by saying, "In Las Vegas, there were lots of people wandering around the halls. There was a lot of excitement that reminded me of the 'old days.' At the New York market, there aren't as many bodies, but boy can they buy! Just a few appointments can make the whole thing worthwhile."
Robertson said there are two trends in the mass market channel of distribution. "Indoor-Outdoor and volume pricing are the two things the buyers have talked about at this market," Robertson said. "The art of negotiation is much more important than creative selling."
A In New York's Oriental Weavers showroom, Kristin Burr, assistant buyer for JCPenney-Direct Soft Home with Merle Johnson, vice president of national accounts for Oriental Weavers USA.
 Steve Mazarakis, center, president of Hellenic Rug Imports, with Robin Mack, left, buyer, and Debbie Cardenas, associate buyer for Hanover Direct, Weehawken, NJ.
 Rao Yarlagadda, president of Kas, with Don Newton, executive vice president of sales and marketing.
 At 828: Geryl Kramer of Kramer Associates, Chicago, with Tom Morris, vice president of sales for 828.
 Allen Robertson, sales manager of Capel, said indoor-outdoor rugs in both braids and woven constructions were best sellers.
 Jim Thompson, vice president of sales and marketing for Central Oriental with some of the 2008 Christmas mats that mass market retailers are beginning to buy. Central's assortment included shiny metallic outdoor mats as well as indoor mats with shiny accents of lurex. Looks like it's going to be a high-gloss Christmas.
2.15.07 |