04102005 Shaw Becoming Major Force in Home Textiles

By Lissa Wyman

NEW YORK -- Shaw Living is emerging as a major force in the home textiles business.

"This market has evolved into a very important part of our business," commented Jeff Meadows, vice president of Shaw Living. "Our mass market/home textiles product line now includes a large number of distinct product categories. We have a big story to tell in kitchen products, bath products and room size rugs. And within each category, we have both domestic and import programs."

Shaw Living began its big push into the home textiles and mass market arena approximately two years ago. "Our growth has been such that we are now seeing  four or five different buyers from each of the mass market stores. Buying duties are segmented into various end-use categories. In many mass market stores, there isn't a single rug department or a single rug buyer," said Meadows.

"We are now spending far more time in product development for the Home Textiles Market than for the other markets in which we participate. It's a tremendously complex industry and it's  not the same business as the traditional core rug business," he added.

Imports now account for about 10 to 15% of Shaw Living's product mix. "We are growing that part of the business, but  cautiously. We feel we are at a distinct advantage in being a domestic manufacturer," said Meadows. "In a post-September 11th world, there are a lot more delivery issues  when you bring in products from overseas. These retailers can't afford to be out of product. Empty shelves can mean a tremendous dent in sales."

For the near term, Shaw Living will continue to concentrate on product diversity witin the mass market business, according to Meadows.

For the future, Shaw may be developing new licensed product lines. "We see the licensing strategy moving in two directions," said Meadows. "We are working together with our retail partners to develop products under licensed names that already exist in the box. We also see further product diversity in our own licensed lines."

Shaw Living has had an extremely successful partnership with Kathy Ireland Home in the room size rug market segment. "At some point, perhaps early next year, we would like to introduce new Kathy Ireland Home bath products for this market," said Meadows.

Meanwhile, the mass market business has become "awesome" for Shaw Living. "We are rolling out a program with Wal-Mart this year and a new program with Home Depot started in the fourth quarter of 2004."

When Shaw Living entered the home textiles/mass market business two years ago, Meadows predicted that segment would eventually account for 50% of the company's business. "We're getting close to that target," said Meadows.