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RUGNEWS
ECARPET
GALLERY
CELEBRATES
20 YEARS;
Looks Ahead to
the Future.
Q&A WITH CEO
EMMANUEL TORABI
Story by: Carol Tisch
MONTREAL AND NEW YORK -- In the digital retailing continuum, Emmanuel Torabi is both innovator and early adopter.
Inspired by America’s magnificent obsession with eBay, he saw
an opportunity to sell rugs online, and in July 1996, ECarpetGallery was born.
From the first day its portal opened to consumers, the company quickly found a niche selling hand-knotted Persian rugs
online -- not just in North America, but to shoppers worldwide.
Two decades later, ECarpetGallery is doing big business with
machine wovens as well as hand-knotteds in every design
style. And it is fast-gaining major traction with sales to the biggest names in national brick and mortar stores.
Celebrating ECarpetGallery’s 20th anniversary this year, Torabi
tells RugNews.com in an exclusive interview what’s next for
this dynamic, growing, international company.
rugnews.com August 2016
How did you get started in the rug business?
I grew up in Iran, and my family was in the rug
business. I developed a keen understanding of all
aspects of hand-knotted rugs from production to
costs and marketing.
I noticed that the brick and mortar rug dealers had a limited market and were struggling to
survive. I had a strong interest in ecommerce, and
I thought I could use my knowledge of the rug business and my Internet vision to reach a much larger
market than just the local area.
I immediately realized that there were certain
obstacles that we would have to overcome.
The shopping experience had to be simple
and easy. The product consumers purchased had to
match their expectations. We had to have a good return policy, and we needed to build trust and provide
a personal service.
What prompted you to start ECarpetGallery?
I was intrigued by eBay, and followed what it did very
closely. I was amazed at the types of things people
could buy and sell online, and I thought the model
could be applied to rugs.
Did you believe 20 years ago that rugs would become so important on the Internet?
Statistically, I was aware that consumers were becoming more accustomed to purchasing on the Internet. I realized that this was a trend that was only
going to increase. However, I have been surprised at
how rapidly people have moved into this method of
purchasing.
For us, selling rugs online is still in its infancy
stage. We are going to catapult into the next level
with more and more outreach into the North American and international markets.
Cover image: A vignette of colorful Gabbeh rugs takes center stage in the expansive ECarpetGallery showroom. Room on
right: From the ECarpetGallery Alaskan
collection, this machine-woven shag with
thick plush pile exemplifies fashion’s new
take on the shag look popular in the ‘70s.
What is the biggest change in the industry that
you’ve experienced in the past 20 years?
The biggest change came in January and it will be
huge for us: After 10 years, the United States ended
its embargo on Iranian rugs, and the market is now
experiencing a Renaissance. We are a very important
source of Persian rugs, and we’re very well known in
North America for our access to Persian rugs.
rugnews.com August 2016
What has been the biggest or most notable change in the
company in the past 20 years?
The technological advancements have moved at such a rapid
rate. With the constant development of software and applications, the younger generation turns first to the Internet for their
purchases.
Internally, we have taken full advantage of these technological changes which have allowed us to improve our product images, providing an accurate presentation, and a greater
range of images of the rugs. It allows us to provide a flawless
purchasing process -- and rapid shipment.
Rug on left: In the last five
years, ECarpetGallery’s sales
of machine-woven rugs like
this traditional Ziegler design,
have grown to 50 percent of
the company’s total business.
Rug on right: ECarpetGallery
is known internationally for its
access to Persian hand-knotted wool rugs such as this
Heriz design in copper and
dark navy.
What are you most proud of about the company?
I am most proud of my team. They have helped me grow the
business. Most of the original employees are still here.
We have shipped over three million rugs to date. I’m
also proud to have provided so many people with exposure to
Persian rugs. These rugs often become part of their family’s
home decor and are passed down from one generation to the
next.
How will the lifting of the embargo impact your sales?
It’s hard to predict sales, but whatever the dollar number is this year, we can say that sales
will have gone up 100 percent in the U.S. because we are starting from a sales base of zero.
The Iranian rug producers have had an over-saturation of inventory for the past 10 years, and
they are anxious to move product and develop new inventory.
What was the core mission when you started your company, and how has that evolved
over the years?
We started online, but now we are developing our business with brick-and-mortar stores
more and more. Not only have we diversified from online to brick and mortar, but also our
product line has diversified. We used to be very strong in hand-knotted and now we also
work with machine woven. The machine woven has come into play because the national
brick and mortar stores sell to consumers that want affordable rugs -- but those consumers
also expect great quality for the price.
What is the product mix at ECarpetGallery?
We pretty much cover it all. It’s a very dynamic range, a very broad spectrum. We carry an
abundance of hand knotted, hand tufted, hand woven, handmade and flatweave. You name
it we’ve got it.
We have over $20 million in inventory at any given time. We have a very in-depth
product offering with a wide range of colors and sizes.
What does it take for a retailer to do well with rugs on the
Internet?
Today, online shoppers are very savvy -- everything is at their
fingertips. One of the reasons we are so successful is because
we don’t have many middlemen involved in our formula. Consumers are shopping for a great product, but they are also
shopping for a great price. We have great relationships around
the world to access marvelous products at a great price, and
we pass that on to the consumer.
How does a retailer benefit by working with you as opposed to other rug vendors?
They don’t have to worry about customers cross shopping on
the Internet because our products are proprietary. We are very
good at sourcing great products at a great price.
Tell us about your sourcing -- are you and your staff constantly traveling -- searching for the next trend?
We have our own curating team, our own buying team. We
travel the world and handpick all of our handmade products.
And we design and work with the world’s largest machine
manufacturers to create proprietary collections for us in machine-woven products.
Do you have an all-time favorite rug design?
My Persian culture has influenced my taste in rugs, so naturally
I am drawn to the traditional Persian styles.
Can you tell us anything about consumer buying patterns
or trends?
It depends on the product. Contemporary, modern designs
are trending in machine woven. In hand knotted, consumers
are definitely looking for the Persian rug look -- traditional,
warm, cozy. Distressed looks are also trending in both machine woven as well as hand-knotted.
What can the industry expect from ECarpetGallery in the
next 20 years?
We will be equally as strong in our machine woven as we are
in hand knotted rugs, always being able to provide affordable
luxury. After five years selling national retailers, our brick and
mortar and online sales are running neck and neck. We expect to grow both segments, and to continue to innovate in
logistics. In this business, we have to be very dynamic and
very nimble.
Persian rugs are displayed alongside
a range of proprietary transitional and
contemporary hand-knotted and machine woven designs curated by the
ECarpetGallery design team.
When did you establish U.S. operations?
We started in the United States a year after establishing the company in 1996. We ship in the
U.S. out of New York. International sales ship from the main office in Montreal.
rugnews.com August 2016
rugnews.com August 2016