MAJESTIC REVAMPS OPERATIONS
AND MARKETING STRATEGIES

Steve Couri and Wanoka Couri at Majestic's new
 headquarters in Norwood, NJ

By Lissa Wyman

NORWOOD, NJ -- Majestic Rug has moved to a new corporate headquarters and distribution center here, reflecting the company's streamlined marketing approach.

With its affordable lines of  room size rugs and smaller bath and novelty rugs, Majestic now markets primarily to drop-ship retailers such as Internet specialists and catalogs and also to large customers who buy on a direct container basis, according to Steve Couri, president.

"Almost 90% of our business is devoted to Internet retailers. It's been a life-saver for the company during the recession," said Couri. Orders are shipped directly to the ultimate consumer via packaging services such as UPS.

The husband-wife team of Steve and Wanoka Couri handles the day-to-day administration of the business. There are three sales people in the field. Majestic now offers 13 running-line collections, primarily hand tufted and machine made products. Currently, the emphasis is on Turkish machine-made rugs. "The supply situation in China and India is unstable right now for a variety of reasons," he said.

"Our niche is to provide items and price points that are different from what consumers see in traditional specialty and chain stores," said Couri.

One of Majestic's popular items is a line of glow-in-the dark "NightLight" novelty rugs, a patented item that the company has carried almost since its founding in 1998.

"We are not going after the mainstream department store and specialty store business. We think that we've made the right choice in exploring Internet opportunities," Couri observed.

"I see continued strong growth in the Internet channel. Consumers have changed their shopping habits. They prefer to buy online rather than travel to a specialty store."

Couri said that specialty stores have been especially hard-hit by the recession, but he does not foresee the imminent demise of that retail channel.

 "Business seems to be on the upswing now, and it's also picking up for specialty stores," he said. "Those stores are also learning to embrace the Internet."

The Internet is not merely a distribution channel, it is also provides valuable research information on consumer preferences, Couri noted. "The Internet is a good barometer of what sells. We get instant feedback on what consumers want in terms of color, design and price."

Majestic's new headquarters is located in a 12,000 sq. ft. facility, with potential expansion of another 10,000 sq. ft. The company was formerly headquartered in nearby Closter, NJ.

Majestic's streamlined approach includes a low profile in the market.  In late 2009, the company closed its New York showroom at 261 Fifth Ave. after nine years.

Currently, Majestic's sales are under $10 million, and Couri said that's where he is happy to be at the present time.

"We prefer to be small and nimble," said Couri. "We want to keep bringing in product and growing with the Internet channel."

In the early days of the Internet, traditional brick-and-mortar retailers were antagonistic about on-line selling. "Now, even traditional stores are getting more involved with Internet sales. There's nothing mysterious about it. It's just another way to do business," he said.

05.05.10