By Lissa Wyman

COLORADO SPRINGS, CO -- Karastan is stepping into the luxury floor covering market with the introduction of imported patterned broadloom and hand crafted wood flooring.

Karastan, always positioned at the high end of the retail floor covering market, is going up another notch with these items, which  are usually associated with  to-the-trade designer showrooms.

While Karastan has historically held strong ties to the rug business, broadloom continues to be the fastest growing segment of the company's business, according to Monte Thornton, vice president of the flooring group of Mohawk Industries, Karastan's parent.

"One reason is that the rug business has become de-stabilized in recent years. You get a lot fewer dollars for the units sold," Thornton observed. It's an issue that affects everyone in the industry, Thornton added. "We are seeing some growth in unit sales, but a decline in dollars," he said. "Meanwhile, broadloom has continued to increase in sales."

Thornton added that more rug production is taking place at Karastan's Eden, NC manufacturing facilities. The company does import some Wilton woven rugs from Belgium and hand tufted rugs from India.

 "We are currently sourcing only about 20% of production overseas, principally specialty items," said Thornton. " We do not plan to increase imported rugs because we are adding more of our own looms in the US, " he said.

BROADLOOM IMPORTS

Although Karastan is making more rugs in the U.S., the company is looking overseas for a new group of high end broadloom.

The patterned broadloom carpeting program  features hand tufted products from India; hand hooked carpeting from China and million-point  Wilton broadloom from Belgium.

The top of the line Floral Ribbons collection is hand tufted in India and will retail for approximately $180 per sq. yd. The New Zealand wool tufted broadloom will retail in the $100 per sq. yd. range. The petit point hand hooked carpeting will retail for $100 to $120 per sq. yd. The Belgian broadloom is available in five patterns, wilton-woven of polypropylene in million-point construction, retailing for $60 per sq. yd.

"These new  offerings represent the first time that Karastan has imported broadloom carpeting," noted Vickie Gilstrap, vice president of  color and design for Karastan's broadloom. "It's also the first time we have sold polypropylene broadloom carpeting."

There are no plans to add rugs to this program, Gilstrap noted.

Earlier this year, Karastan introduced its American Treasures collection, a group of high end co-ordinated designs that include broadloom carpeting, rugs and runners. These products are made of wool on Karastan's looms in Eden, NC and retail for approximately $100 per sq. yd.

" American Treasures has grown exponentially since its launch in May, and we are now adding several new designs," Gilstrap added. The original American Treasures collection emphasized traditional designs. The new designs represent transitional and contemporary motifs.

WOOD ESSENTIALS

Lindsey Waldrup, brand manager for Karastan's
Wood Essentials program.

The Wood Essentials program is Karastan's first entry into the wood flooring business. They include both natural wood and engineered wood products, all hand crafted in South Carolina, according to Lindsey Waldrup, brand manager for hard surface products.

The wood floors, which include both plank and parquet patterns in five finishes, are all hand finished and hand scraped. Retail prices will range from $12 to $18 per sq. ft. for engineered floors to $20 per sq. ft. for solid plank floors. Top of the line will be $50 per sq. ft. for parquet inserts.

The loaded wood display is available to dealers for $3,200. the Wood Essentials program will have a gradual cross-country roll out, beginning in the Southeast in Spring 2007 and eventually covering the entire US by 2008. "As we begin this program, we are looking for dealers with extreme dedication who are knowledgeable and may already carry wood floors " said Waldrup. 

The Wood Essentials displays feature photographs of rugs on top of the floors, and Waldrup said that rug dealers would also be a natural to sell this new program.  "We will probably show  Wood Essentials at the Atlanta market in January," she said.

RUGS

Elizabeth Miller, senior vice president of style and design for Karastan rugs, and Bill Storey, Karastan senior vice president of rugs.

Karastan gave buyers a sneak preview of several new rugs at the New York Metro Market in September. New rugs will also be introduced at the upcoming Atlanta International Rug Market in January 2007.

Karastan's design strategy for rugs continues to emphasize updated traditional patterns, with some ventures into the transitional  market with its Indian hand-tufted Artworks collection.

Although the company has dabbled in contemporary design in the past, Karastan continues to strengthen its commitment to classic looks.

"Our research indicates that Karastan customers consider themselves to be traditionalists, but they don't want  overly ornate classical patterns. With our new designs, we are aiming at a younger and hipper traditional customer," said Elizabeth Miller, senior vice president of style and design for Karastan rugs. Reflecting the move to cleaned-up classics, Karastan's new Shapura collection is based on the larger, more open field patterns of Peshawar hand knotted rugs.

"The three rugs in our initial launch have  been shipped to stores and we are already seeing great sell-through," said Miller.

The Shapura rugs are made on Karastan Axminster looms in Eden, NC and retail for approximately $1,299 in 6x9.

11.26.06