By Andrea Lillo
January’s Atlanta International Area Rug Market will kick off what everyone hopes is a better year. And while industry experts say the economy is on the rebound, some things will not change much, such as consumers’ resistance to spend—or at least spend as much as they had in the past.
But many rug manufacturers feel that the Atlanta market is an important market, and they are ready to start the new year.
“As legendary football coach Bill Parcells says, ‘You are what you are,’” said Mark Ferullo, vice president, Rizzy Rugs. “The economy is the economy.” “We must make adjustments to the demand and continue to develop and deliver products.”
This show will be improved from previous markets, said Seth King, vice president, sales and marketing, Surya, and the retailers that are still in business need new items for their stores. “Most retailers expect quick delivery, in fashion colors and styles, and great prices,” he said. “If you can’t deliver on all three of these issues, retailers will find another source who can.”
However, companies felt business for the year will be flat for the most part, maybe with a slight increase toward the end.
“We believe the bottom has been hit but not sure how quick recovery will take place,” said Kim Barta, brand manager, Shaw Living.
Value-oriented products will continue to be a major driver this year. Asha Chaudhary, chief executive officer, Jaipur Rugs, said the low-mid segment has gained market share, and she also sees improvement at the higher end as well.
Atlanta “is a very strong market for us,” Chaudhary said. “Retailers want to increase sales, deliver for their customers and increase their net income contribution. This all leads to re-investment and a strong industry.”
Oriental Weavers saw the last few months as the best of 2009, said Aaron Gray, marketing director, and believes Atlanta will be a good show. “We don’t expect it to be like it was three or four years ago,” he added, “but it will be better than it was in 2009.”
Oriental Weavers will be introducing a lot of firsts this January. At the high end, it will expand into Axminster product, made of New Zealand wool in Egypt. On the other end, it will show more value-oriented lines, such as machine-woven rugs retailing at $99 and $149 for a 5-by-8. “We’ve never really shown at these price points,” Gray said. It has also recently entered the scatter rug category with the Accentuate line, which will show in Atlanta.
Rizzy has recently debuted its machine-made collection, which will be seen in Atlanta. In addition, Rizzy has a total home assortment available, including top-of-bed, decorative pillows and window coverings. Its Rizzy Complements group offers coordinating rugs, pillows, throws, artwork and bedding, either a la carte or in packages.
Surya will expand its 18-inch corner sample program to include more than 500 designs, King said. The company has also strengthened its hand-tufted wool collection, which retails for $299 for a 5-by-8, and is stocked in 22 sizes. Its licensed product, “especially our Candice Olson Collection,” performed well last year, King said. “Brand names will draw the end consumer, they just need to be marketed properly.”
Designer collections remain important at Shaw as well, which will add designs to its Kathy Ireland International First Lady Collection, the Kathy Ireland Young Attitudes collection (the majority of which will coordinate with the Kathy Ireland Home by Thank You baby bedding), and Angela Adams, which will have a new printed recyclable nylon offering with a textured base along with the woven designs.
Shaw is also expanding its value-oriented Inspired Designs collection, which is made of machine-woven olefin and includes traditional, contemporary and transitional styles. In addition, the company will get back into outdoor rug offerings with Seaside and Garden Party, made of recycled content, and novelty scatter rugs.