By Lissa Wyman

FT. LEE, NJ -- Couristan is celebrating its 85th Anniversary, a venerable milestone in the rug industry.

In the past 85 years,  international politics have forced importers to change their sources of supply,  technology has turned the industry upside down, the economy has gone through cycles of boom and bust, consumer shopping habits have changed drastically.

All of these events have occurred again and again and Couristan has not only weathered the storms, but has changed and prospered with the times.

Although proud of the company's heritage, top executives George and Ron Couri are more interested in today and tomorrow, not yesterday. 

In a wide ranging interview with Ron Couri, president and chief executive officer, Rugnews.com discussed Couristan's past and future position in the rug industry.

The modern Couristan is divided about equally between the hospitality division and the  residential business, according to Couri.

"There have been many changes over the past 85 years, but I believe we are now facing one of the most dramatic turning points in the business," said Couri.

Industry Outlook

Couri  predicted that the future rug industry will be larger, but the nature of the business will be very different than it is now.

"In the past few years, we have seen continued decline in the hand knotted segment of the business. We are now at the point where there are very few skilled weavers. While there is still a limited -- but shrinking --market at the high end, I predict that the handmade market will continue to shift to hand tufted constructions," said Couri.

Couri pointed out that hand tufted rugs provide consumers with affordable products that have brought handmade rugs within the reach of virtually everyone.

Couristan has long been known for its commitment to power-loomed rugs, and this construction will continue to grow and change. Currently, about 70% of the business is in power-loomed rugs and 30% in hand made. Couristan offers 25 hand made collections and 29 power-loomed collections.

"I think we will see some surprising innovations in both hand made and power loomed constructions in the next year or two. I see new technology coming onstream," he said.

"We will also see more power-loomed rugs being made in India over the next few years," he added.

While Couristan is well known for its classic styling, there is a continuing shift to more contemporary looks. "In the past, our mix was 70% traditional and 30% in other  styles, now it's about 50-50," he said.

Couri also predicted that in the future,  there will be fewer but larger rug vendors. "Those that offer a complete package of products will be the ones who survive," he said.

The major part of the business has evolved to the value-oriented and medium price points, where it will remain for the foreseeable future, said Couri. 

In the past  year or two, rug importers have been hit hard by rising costs as suppliers have passed on steep increases in raw materials. In an already challenging business climate, profits have been squeezed at all levels.

"In the past three months, the raw materials situation has stabilized, so that is a hopeful sign," he said.

Over the past several years, the power-loomed business has experience major changes. "Belgian production has shrunk, but Turkish power-loomed rugs are becoming more important," Couri noted.

China's position in the market is difficult to gauge, said Couri. "They have a growing middle class, so rug manufacturers are turning their attention to the domestic market."

Growth of Indoor-Outdoor Rugs

"The introduction of indoor-outdoor products in the early 2000's was a major turning point for our company," Couri stated.

A pioneer in the burgeoning indoor-outdoor rug business, this product category has become an increasingly important part of Couristan's total rug business.

 "Beginning with the Recife collection, we got into that business early and we now have eight collections backed with powerful merchandising programs for retailers. We've just scratched the surface in this product category."

Channels of Distribution

Couri noted that the big growth in the rug business will continue to come from the mass market, Internet and catalogue channels.

"Today, those stores account for about 65% of the business, mostly at the expense of independent rug and floor covering stores."

As department stores have consolidated, Couri also sees an increase in that portion of the business.

Summarizing the present state of the market, Couri noted. "Perhaps it's not the most optimistic outlook, but if you stay on top of it, you will have a viable business."

Check out Couristan Anniversary Events, click here

NEW TIMELESS TREASURES SERIES
MARKS COURISTAN  85TH ANNIVERSARY

Couristan's Timeless Treasures is power-loomed of New Zealand  semi-worsted wool. Made in the European Union, the rugs will retail for $599 in 5'3" x 7'6."

Couristan's new Timeless Treasures collection was created to honor the company's 85^th Anniversary,

Timeless Treasures pays homage to the company's early history as an importer of fine Persian rugs. This assortment reflects the intricately detailed Persian fashions that Couristan was originally known for when the company first began..

The Timeless Treasures collection offers the classic luxury and ornate appeal of vintage handmade Persian area rugs in a more attainably-priced power-loomed construction. The rugs feature  New Zealand semi-worsted wool pile, with Couristan?≤?Θ╝?Σ≤s proprietary Locked-In-Weave  The yarns are cut with Couristan's Crystal Point Finish which creates greater definition and a soft shimmering surface.

COURISTAN HISTORY

In April,1926, Couri Murad & Co. was formed by Basil and George Couri, American-born brothers of Lebanese descent,  and David Murad, an Iraqi immigrant.

First sources of supply were Persia, followed by  Smyrna, Turkey and then India.

In the early days, Couri-Murad operated lease departments in Gimbel's stores across the country and Mandel Bros.Department Store in Chicago.

In the depth of the 1930's depression, Couri Murad began importing affordable braids from Japan and hand-hooked rugs from China. From the 1930's to the 1960's, Couristan was one of the largest braid rug importers in the U.S.

In the early 1960's, Couristan introduced Kashimar, its first power-loomed product. At that time, Couristan became entirely committed  to the wholesale business.

In the late 1960's and early 1970's, Couristan entered the broadloom business and the contract hospitality business.

In 1975, Couristan began importing from China.

In the late 1970's and early 1980's, Couristan acquired Axminster looms in England and Ireland and began its own manufacturing.

In 2006, Couristan/China was formed as a Joint Venture between Couristan and Haima Group.

In the past ten years, Couristan began relocating  its European looms to the far east and Poland. Today, the company makes Axminster carpeting in Thailand, China and Poland

Founding partner David Murad died in the early 1970's. Basil Couri died in 1977, and  George Couri died in 1989.

During the 1970's George Couri's sons George, Ron, Steve and Bob joined the company. Bob Couri left Couristan in 1990 and is now president of Innovative Carpet, a hospitality carpet specialist. Steve Couri left the company in 1998 and formed Majestic Rug.

George Couri is now chairman of Couristan and responsible for the company's hospitality and broadloom division. Ron Couri is president and chief executive officer and is responsible for the residential rug business.

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