07142005 Rug Vendors Diversify Beyond Core Products

By Lissa Wyman

In an era when retailers are paring down vendor lists, diversification is a key survival tactic for rug producers. The efforts to become one-stop shopping centers is transforming companies from specialists to generalists.

 High end specialists are introducing affordable rugs. Those that once stuck to medium price points are going high end. Domestic manufacturers are importing products. Importers are now selling U.S.-made products. For some, furniture is also being added to the mix.

Shalom Brothers has been long known as an importer of fine hand knotted rugs, but this Summer the company is introducing lower-priced hand tufted and machine made collections.

Rafi Amirian, Shalom's vice president of marketing, said the company is emphasizing high end styling in medium price points."We want to be a one-stop showroom for the best colors and designs,€VbCrLf he said.

There seems to be a need for new hand knotted products, as well, Amirian noted "In the past few years, importers have turned their attention to popular price points. As a result, we haven't seen many new hand knots in the $2,500 to $3,000 range. We think there are new opportunities in that category,€VbCrLf he said.

Hellenic Rug Imports is making a similar move from the other end of the price spectrum. "We are best known for moderately priced rugs, but now we are upgrading. We have introduced fine hand knots in wool and wool-silk. It's a segment of the market that has been neglected for some time,€VbCrLf according to Steve Mazarakis, president.

Jaipur Rugs, known for high quality hand knotted rugs in traditional designs, is introducing hand tufted contemporary rugs in both Atlanta and Las Vegas. "The market is obviously moving in a contemporary direction, and we have been dabbling in this design category for some time. Because the patterns and colors have a short shelf life, affordability is really key,, so we are headed in that direction. zOur new tufted products will retail at the $599 level,€VbCrLf said Kirby.

Importer Central Oriental is quietly gathering strength as a boutique U.S. manufacturer. using its small (six looms) Maine plant for medium-priced niche products aimed at independent stores and smaller chains. 

"We are introducing mansion size rugs and oval shapes, which are unique for American production. European sourcing is still very important to us, but our U.S. facility is a  laboratory, where we can work closely with customers to develop exclusive products using new textures and constructions,€VbCrLf said Jim Thompson, Central's vice president of sales.

In addition to Central's Maine operation, parent company Natco Home  is making further diversification efforts in Asia. The company is currently developing a large textile operation in China. While Chinese machine made rugs are quickly coming on-stream in the U.S., Thompson said Central is currently focusing on its European and U.S. production.

Product diversification is not restricted to importers. Shaw Living, the U.S. machine made manufacturer is  introducing imported machine made rugs this summer, according to Kim Barta, director of marketing. "We've got more surprises in store, as well,€VbCrLf she hinted.   

Safavieh, an importer of hand knotted and hand tufted rugs, is  using the Las Vegas show to launch its wholesale furniture business.

"We sell furniture in our retail stores on the east coast, but we have not been involved with wholesale distribution until now,€VbCrLf said Arash Yaraghi, a Safavieh principal. "We are using the Las Vegas market to make a deeper penetration in the West. We think it's an opportune time to get into the furniture business, as well.€VbCrLf

Abbyson, the California-based rug importer, is using the Las Vegas market to introduce itself as a furniture source.€VbCrLfWe have many furniture store customers and they have asked us why we don't have a furniture line. Now we do,€VbCrLf said Yavar Rafieha, vice president of sales and marketing. "Unlike our rugs, which cover both traditional to contemporary styling, our Park Ave. furniture has a single design point of view. With a Eurasian contempory look, the  lines are clean and spare and the dark finishes can be used with any interior color scheme.€VbCrLf

7.15.05