001 FALL 2006.qxd - Proportion Design

Market Review
FURNITURE MARKET
GAINS MOMENTUM
SUCCESS AT HIGH POINT 2011
by Ellyne Raueber
48 Summer 2011
Market Review
Unemployment remains high and the rising cost of
“It turned out to be a good market for us,” said
raw materials is worrisome, but High Point is the lat-
Kami Navid of Jaunty Co. Inc. Los Angles, CA.
est in a round of markets to testify to a strengthening
“Among the three markets that we go to, High Point
economy. Hallways packed body-to-body belong in
is the best for us. Traffic was still down compared to
the land of nostalgia; only the committed, those with
three or four years ago when we would see a lot of
growing confidence, who have survived and are pre-
international customers and bodies in the hallways,
pared to buy, come to today’s markets, and they were
but the buyers were more confident and we had more
at High Point.
attendees coming into the showroom.”
“We changed our advertising campaign,” contin-
SERIOUS BUYERS
ued Mr. Navid. “We did some direct mail before mar-
John Feizy of Feizy, Dallas, TX,, has been going
ket; advertised in pre-market issues as well as in mar-
to High Point for over 20 years. “It was a very good
ket issues; gave incentives to our active accounts and
market,” he said. “Actually, it was the best market
to our agents for making appointments; and offered
we’ve had in three years. There is some movement in
show specials that would be received if orders were
the economy, and people who were going out of busi-
placed at the show. There is no way for us to say that
ness are out. The bodies may not be as many as
we had a better market because of this, but overall,
attended the market before, but the buyers who were
considering all that we did, it worked for us.”
there were serious and they were buying.” David
Basalely, Eliko Oriental Rugs, Inc., New York, NY,
WHY HIGH POINT
agrees that the market has not fully recovered to
High Point is an “old” market that some vendors
where it was three or four years ago. “Nevertheless,”
have been attending for years and years; others are
he said, “there is optimism and the people who came
returning after absences, and for some it is a new mar-
in were serious buyers.”
ket. The draw is both the dedicated furniture stores
OPPOSITE PAGE Top: Creative Touch; Bottom: Jaunty BELOW: Tamarian
AREA
49
Market Review
that come to shop and designers who will pick up the
designer business with individual purchases,”
perfect rug to “make” a room.
explained Geoff Duckworth, Tamarian Carpets,
With just three markets under its belt, Kalaty is a
Baltimore, MD. “Atlanta attracts the dealers because
relative newcomer to this North Carolina market-
you have six floors of area rugs. At our new space in
place. “We are doing High Point because it is a furni-
the main part of Market Square, we are maybe one of
ture market, a market that we need to tap into more.
two. There are a couple of dealers on every floor
We are aiming for furniture dealers, but got a mix of
there. More decorators and designers come in. They
dealers and designers,” noted Kamran Kalaty, Kalaty
purchase furniture and other items and then they come
Rug Corp., New York, NY. “We started in our own
by and get some rugs too.”
showroom just a year ago and with each market, busi-
“We’ve been going to High Point for the last six
ness grows. People’s attitudes are better and they are
or seven years,” said Mr. Basalely. “The draw of the
feeling more confident, are getting back into the
market is the focus on designers as opposed to the rug
game. This April market, our third, was good for us. It
dealers who show up at Atlanta. High Point is not by
showed us that this market is a good fit for us.”
itself a significant part of our rug business, but is an
“We stopped going to High Point around 2007,”
add-on that complements our regular rug trade. Some
said Baki Ildiz of Creative Touch, Secaucus, NJ.
designers have stores with furniture, table top and
“Then, we began getting requests from furniture deal-
decorative items and they buy rugs as accent pieces or
ers and designers. This market was angled in that
floor covering. They also have design businesses on
direction more than other markets, so we took a shot
the side. They are not strictly furniture stores and not
in the dark, presenting our goods at this market, and it
strictly designers. The feedback we get back from
worked out for us. This was our second show since
them regarding trends, colors, and styles, gives a good
October. Traffic was a little bit slower, but overall we
sense of which direction the market is going.”
did very well.”
“We did well at market,” said Aaron Gray, Sphinx
TESTING GROUND
by Oriental Weavers, Dalton, GA. “We have some
“Every show for us is a testing ground, said Mr.
great relationships with many of the major furniture
Duckworth. “We will come up with new colors and
chains out there. That is the market that they go to; it
designs from research in the market and from differ-
is the market that they shop. Several majors like Lazy
ent publications. We look and see what is popular and
Boy and Ashley have their store managers’ meetings
then we’ll bring out something that we think works;
right around High Point. That gives us an opportunity
or we’ll listen to some of our weavers about the col-
to meet with them and show them our new products.
ors they see. The market is a testing ground: once
It is a market that we feel is very important to us.”
these samples are up, once somebody comes in and
they go right to a particular piece, you know. I’m see-
DESIGNER BUSINESS
Designers attend this market, and in fact, visit its
ing modern and contemporary designs being more
popular than traditional ones right now.”
permanent showrooms year round. They buy individ-
“Furniture people are more on top of the trends
ual carpets or a small number for stores that they own;
than regular rug dealers,” said Mr. Kalaty. “They are
and they provide feedback about what is being sought.
more fashion forward. For example, if we show some-
“Atlanta is more dealer driven so we will pick up
thing that we want to get an idea about, they will say
more stocking dealers; in High Point it is more
yes, this is up and coming. They give us ideas.
50 Summer 2011
Market Review
ABOVE: Eliko BELOW: Tamarian
AREA
51
Market Review
Furniture dealers and designers are ahead of the
game.” Mr. Feizy said: “Basically most of the highend furniture stores have to deal with trends because
everything that higher-end customers buy is about
color, design, texture and fashion.”
WHAT SOLD
Sales are better, but caution is the watchword as
the country fights a sense of insecurity that belies an
economy on the mend. Some new rules for retailers
include: buy safe, but add a fresh look to perk up
inventory and a lower price point to round it out.
Tamarian added some new designs to its featured
Phoenix Collection, first introduced at the Atlanta
market. “Phoenix has been generating a lot of interest,” said Mr. Duckworth. “It is a triple wash that features modern and traditional designs and is priced at
an 80-knot price point, a price point for the times.
People are still a little nervous about spending and
they are looking for a better deal, or ‘a deal.’ The
Phoenix weave goes to a better price point for dealers;
it is a little more affordable.”
Mr. Gray agrees that there is optimism tempered
by caution. “We are seeing that people are buying at
lower price points,” he said. “Actually, they are price
points that in the past we never thought they would
drop down to, but if retailers get customers in the
store they want to be able to sell. It may be something
that in the past would not have been in the store to be
offered, but once they get them in, they want to sell
them something.
“Tone-on-tone patterns sell very well for us,
casual and simple things. I think that has a lot to do
with the economy,” explained Mr. Gray. “People are
buying safe, shying away from rugs or furniture that
may be a little bit out there or edgy. We have a new
indoor/outdoor collection in earthtone colors, rust and
lime green that is doing extremely well for us, and
have introduced another machine-made indoor rug
that seems to be doing well, also.”
52 Summer 2011
Market Review
For Jaunty, its Showtime Marketing System is
always a best seller at High Point. “We are not into
stock selling,” Mr. Navid explained. “We sell a concept with Showtime and we got a lot of new accounts
at High Point. We continue to modify and add and
make it easier. For example, the lighting and presentation is now more proficiently done. Nine years ago
it was just a small tower, but now it has evolved into
a studio for our company—one that fits in a nice,
high-end furniture store.”
“Our newest collection of patchwork and retro
dyed rugs was our hottest product,” said Mr. Ildiz
“These are vintage rugs that we collect from Turkey
and take through a process: texturing, shearing, washing and dying in about 17 vibrant colors including
blues, purples, pinks, aqua, yellow, orange; really
bright vibrant colors. If the pieces are good then we
keep them as a single rug and if the rug is not in good
condition then the good parts are cut out and are sewn
together to make a patchwork rug. Everyone is looking for color right now. They want to give some fresh
looks to their showrooms and to their clients’ places.
“Our second collection,” he continued “was wool
and silk natural fiber rugs like aloe, hemp, cactus, and
banana silk in more modern lines from Nepal and
India. The third collection was our regular, traditional
higher-end to lesser-priced merchandise: Ushaks from
Turkey and Pakistan, to our own production of higher-end merchandise. All three areas had their own
clientele. It was really exciting.”
OPPOSITE PAGE Top: Eliko
Bottom: Feizy.
RIGHT Top: Creative Touch;
Bottom: Jaunty
AREA
53
Market Review
MORE COLOR
optimism for the coming year. “I think that we have
Although those stone grey and blue colors are
hit our low and that we are bouncing there now,” said
still moving, an interest in color, in fact, in brighter
Mr. Gray. “People are waiting for the turn, thinking
colors, is afoot. “We’ve had a few rugs that we’ve had
that we’re not going to go any lower, not going to
out for a year or so now that have bright color palettes
drop any more. I think people are optimistic.”
and I’m seeing more interest now,” said Mr.
One of those people was Mr. Feizy. “I was
Duckworth. “After two or three years of grey and
pleased with the market,” he said. “It was a better
blue, people are looking for something with more
market than Vegas where there are not so many furni-
spice. The rug industry is probably about two years
ture exhibitors, although we had a good market at
behind the fabric industry and I remember a year or
Vegas. I’m very optimistic about finishing out this
two ago seeing bright, primary colors—fuchsia and
year and I think next year is going to be a much, much
electric blues. Now I’m starting to see it in the rugs.
better year.”
“We prepare for the future that way too, seeing
“We always get new customers, but this time we
what is popular in the textile and fabric industry and
had more of everything, both new and returning cus-
then trying to develop those designs as quickly as pos-
tomers,” said Mr. Navid. “Our expectations have been
sible in colorways that would work,” he continued.
on the lower scale for the past few years, but looking
“We bring them to the shows to see how people react.
at the whole picture, we are optimistic; customers are
People in different parts of the U.S. are going to have
optimistic. The consumer is feeling more confident. It
different opinions because trends push west. I have
was a better Atlanta for us, and it turned out to be a
customers in Oklahoma who are now loving stuff that
better High Point, too. We can feel and see the
we had out three years ago in the East.”
improvement.”
At Feizy, they work two or three years ahead of
time with an upcoming color. “Our design department
is constantly introducing new design, texture and
color combination, so we’re constantly introducing
new colors. Now in the marketplace I see more of the
brighter tone on the one hand, and then on the other
hand, more tone-on-tone which is a safer bet,” said
Mr. Feizy. “We have bright colors in our showroom,
but the shelf life is short; those pinks, they’re risky.”
Mr. Basalely sees certain colors fitting certain
décors and more people asking for more color, but not
necessarily bright tones. “By focusing on antique
rugs, we have softer tones and conservative colors,”
he said.
OPTIMISM RULES
Some consumers will buy their rugs from furniture stores and some designers will build their rooms
around rugs purchased at High Point, where there was
54 Summer 2011
BELOW: Feizy