By Jennifer Quail
They said they would wait and
see and, apparently, they’ve seen enough.
World Market Center’s newest building opens its doors this week with a plethora of rug companies in permanent attendance. Many of those companies tested the waters first in temporary space, uncertain as to whether buyers would find room on their calendars for yet another market. But it would seem that debate has since been settled. As one executive put it, “The customers have answered that question. They are attending this show by the thousands.”
Companies that have taken the Vegas plunge have repeatedly stated the show has provided precisely the venue it promised: state-of-the-art facilities, a designer-friendly atmosphere and, perhaps most importantly, local exposure to the West Coast. With a third building now opening its doors, exhibitors believe the show’s status will only rise further.
Mark Ferullo, vice president of Rizzy Rugs, said his company is looking forward to the opening of the Building C, and its space within it, as “Las Vegas brings a variety of distribution channels” to the company. Rizzy had previously exhibited in the pavilions. “We look forward to an exciting opening and lots of traffic,” Ferullo said.
The tenants of Building C say the buzz is so big for the opening that even during construction people were asking to be put on guest lists for the event. The excitement is fostering togetherness as well, as all the rug companies exhibiting on the eighth floor of the newest building here have joined forces to host a collective party on Tuesday afternoon.
That positive vibe is carrying over into general business, as well, as executives said they believe the energy and momentum of this Las Vegas Market can aid in the reversal of several down seasons for the home furnishings category.
“Las Vegas is such a popular destination point for home furnishing buyers,” said Yavar Rafieha, vice president of Abbyson. “We believe, after the opening of Building C, this industry will see a steady climb back to the top.
While many of the companies who have taken space in the new building tried space in the pavilions or off-site temporary locations initially to test their company’s compatibility with the young market’s audience, they have since been sold on the market’s potential.
“We are hoping to see a nice increase in business,” said Wendy Reiss, key accounts manager for Kas Rugs, of the company’s move from the pavilions to permanent space. “We did fine in the pavilions, but we really think having a space three-times the size, in the building, is the way for us to go. It’s hot outside, over 100 degrees; who wants to walk to the pavilions?”
Don Newton, vice president of sales and marketing at Kas, added, “Even customers with appointments will be less likely to cancel or no-show now that we are more conveniently located.” He also said, “Many customers will visit the new building out of curiosity, thus giving us even more exposure.”
Weighed most heavily for all, of course, was the input of buying customers.
“After speaking to a broad range of our own customers, it was apparent that many buyers have decided to attend only one of the summer markets, choosing between either Atlanta or Las Vegas,” said Larry Mahurter, director of advertising and marketing for Couristan. “In order to truly capitalize on the significant business potential of the July buying season, we felt it was imperative to create a brand presence at both markets.”
Couristan is among the companies using the opportunity of a new showroom to show a fresh face for their business, one more relaxing and reflective of West Coast buying habits. For example, Mahurter said Couristan’s space “has been designed as an upscale, interactive, visually driven buying experience … with textured wall features and a sleek contemporary fell.” The showroom also includes private meeting spaces, lounge-inspired areas and an entertainment bar.
For Jaipur Rugs, too, its new showroom “will have a more contemporary feel and also launches our new brand identity,” said Asha Chaudhary, chief executive officer of Jaipur. “Instead of just being a rug showroom, it will be more of a lifestyle showroom.” Chaudhary said the company will repeat similar plans with the expansion of its High Point showroom, scheduled for completion in October.
But even those who already held permanent space in one of the existing buildings are making changes as they open doors in Building C. Abbyson, for example, will have two showrooms open during this market. The existing Abbyson location in Building A will have an Asian Tao theme, complete with the company’s eco-friendly, hand-knotted Tibetan rugs and a new line of antique furniture called Tao Home by Abbyson. The company’s new showroom in Building C will carry its Abbyson Living banner and will feature a mix of home furnishings collections focused on modern European furniture, as well as a new line of hospitality collections. The new space is completed by a custom-built bistro lounge.
Also included in Building C will be the Living Green Pavilion, temporary space occupied by the Sustainable Furniture Council. SFC is showcasing cross-category companies, including Prairie Rugs, which had previously exhibited on its own in the pavilions. As the company does not occupy permanent space in any market center, company President Kevin Aylward said being “on campus, in the new building, as part of the Living Green Pavilion, will allow exposure beyond any we have enjoyed so far.” Aylward said his company has “rallied around the interest in eco-friendly furnishings, [as] ‘green’ is one of the few areas of growth in the industry.” A series of educational seminars are planned for the SFC space in Building C.
As far as business is concerned, rug vendors are starting to point to a light at the end of the tunnel, with many referring to 2009 as a turning point for the home category overall.
“Business is tight, no question,” Ferullo said. “But we must be innovative.” Part of Rizzy’s plan is to “create new ways for the retailers to go factory direct.” Ferullo said they have created a number of exclusive programs with some retailers in order for them to be able to maintain and increase margins.
“The economy is always a major factor,” Newton said. “But we refuse to sit back and use it as an excuse. It may not be an easy fall, but consumers are still buying rugs by the millions and we intend to get more than our share.”
“Keeping a positive outlook, combined with good old-fashioned hard work never goes out of style,” Abbyson’s Rafieha said. “It is also important not to be afraid of the changing economy, but to figure out how to use it to your competitive advantage. During these times, creativity, hard work, focus and having a positive belief system are essential.”