By Jennifer Alexis
Many rug vendors, undeterred by the poor economy, will debut expanded showrooms or are planning bigger-than-ever product launches at this week’s Atlanta International Area Rug Market.
In fact, some are looking at the current economic condition as an opportunity rather than a hindrance, identifying it as a chance to really come through for retailers who, more than ever, need top-notch customer support and dead-on product assortments to survive and perhaps even thrive in the months ahead.
Kaleen Vice President Joe Barkley said the company goes into all markets bullish and with high expectations, but attendees can expect Kaleen to be particularly prepared this January as it looks to make a strong start to the new year.
“We see the unsettled economic situation as an opportunity to expand and garner more market share,” Barkley said. “The Atlanta market will be an avenue for us to expand our brand.”
The company’s optimism is commensurate with its recent success at thriving in and despite hard times, he added. “We kind of bucked the trend in 2008; we showed sizable growth in 2008 in part because of the strength of the Paula Deen [line of product].”
Kaleen plans to capitalize on the line’s popularity by expanding the brand and introducing products, and this week’s market provides a great—and the first—opportunity in 2009 to show off that strength.
“Our appointment schedule is right on track with what we had last January, which was our biggest market in history,” Barkley added.
Many vendors concur that no matter what is going on with the economy, Atlanta is a must on the annual market and trade-show circuit, and some are proving their confidence in the Atlanta market with sizable showroom expansions. Momeni Rugs has just upped its showroom square footage by more than 10,000 square feet with its move into a new 13,000-square-foot showroom across the hall from its previous location.
“We gave this move a tremendous amount of thought and felt that at this time, it was what was best for Momeni because of our commitment to this market for many years to come,” said Momeni President Reza Momeni
He added that the showroom will give the company the space to show the breadth of its assortment and create a comfortable atmosphere for customers and staff.
Another company that has recently upgraded its space is Loloi Rugs, which, with only five years as a company under its belt, is expanding to a 7,000-square-foot showroom and plans to celebrate its growth with customers every day this week.
“At Loloi, we are really proud of what we are doing, but more importantly our customers are excited by our products,” said the company’s president, Amir Loloi. “By expanding our presence at the Atlanta market and showing our entire line, we are hoping to spread that excitement.”
Smyrna Trading also outgrew its previous market space and has moved into a larger space to support what it describes as a burgeoning business. “We are experiencing significant growth and know that our permanent home here is growing with us,” said Ahmet Icen of Smyrna Trading.
Shaw Living, although not announcing any showroom expansions this year, is planning a grand product launching.
“January is going to be our biggest launch ever,” said Kim Barta, brand manager for Shaw. “We’re really gearing up for 2009. We are still expecting things to be tough in ’09—we are ready and expect that. But we do find that the people who come to market are there to buy.”
Vendors also realize, however, that with all the competition around, it’s crucial to convey their individual strengths and points of distinction to potential and existing buyers no matter how motivated they seem to be.
Seth King, Surya’s vice president of business development, said the company is not taking anything for granted.
“We are marketing a little more aggressively than we have in the past,” he said. “We don’t expect customers to just walk into our showroom, so we have put together a marketing plan that clearly lays out our message, and answers the retailers’ question, ‘Why Surya?’ ”
Market is often one of the few opportunities vendors have to meet face to face with customers and certainly to show off all or most of a company’s line. These days, it’s also prime time for vendors to offer the support, services and guidance retailers need, perhaps now more than any time in recent years.
“We think we will see a lot of retailers who are looking for solutions,” King said. “They are looking for vendors who truly understand their business needs, and vendors who have a well thought-out approach to how they can help the retailers become successful. We have geared our company to be able to become valuable to all our retailers—large and small—by offering multiple solutions.”
Austin Craley, vice president of sales at Momeni, pointed out that the Atlanta market is the optimum time to get feedback from customers on what they need, what’s working for them and what’s not—crucial information for vendors looking to tailor their business as specifically and comprehensively as possible to the needs of their customers.
This particular market—especially in the year 2009—however, is one that offers an opportunity that many retailers can’t afford to pass up, he added. This market may be many buyers’ best opportunity to update stale product assortments.
“I think it’s really important to get caught up with what happened in 2008 and what’s new for 2009,” Craley said. “Atlanta is the best place to see what’s going on.”
It wasn’t unusual this past year for retailers to be rather conservative, holding the line on inventory either out of necessity or in anticipation of worse times ahead. Some also pared down travel expenses by cutting back on trips to market. Craley is cautiously optimistic that retailers will want to freshen up their stock this week.
“Maybe pent-up demand for new product will bubble to the surface,” Craley said. “A lot of retailers have watched their inventory closely, but there is a fine line between holding the line too much and then not delivering fresh products to the customers who do come in the door.”
Market attendees who are ready to buy, he added, will have plenty to choose from as Momeni and many other rug companies are coming to Atlanta armed with tons of new product.
“We’re not sure when the economy will turn around, but we do know that until then business is still being done, and retailers still have to pay their bills and keep things flowing,” Craley said.
Sphinx by Oriental Weavers is one of those companies bursting at the seams with new product. It’s aggressively expanding its broadloom and rug pad businesses, but President Mike Riley said the company is also coming out with some new rug lines that are “innovative and right on trend, both in style as well as price point.”
“We are committed to developing new products for our retailers so they can drive business in their stores, and when they have a potential sale, they know we will have the inventory to fill that order,” he added.
Meanwhile, rug vendors themselves also have to keep things flowing. Many companies have refined their businesses to meet current market challenges or stave off possible hardships. Barkley from Kaleen, for example, said his company is controlling the things it can control and tightening the reins on segments of its budget. He added that its investment in new product development and growth is not among the budget lines to be cut.
“We will control expenses a little stronger,” Barkley said. “That’s just us being more fiscally conservative in the new year, but in terms of promoting our products and showing our products, it’s business as usual.”