Rug business regaining momentum

High Point— After advancing in fits and starts during 2003 and early 2004, the rug business has regained momentum in the past six months. As a result, rug vendors are coming to High Point in a better mood than in the past few seasons.

"The past two years have been difficult, but we've

"Business has been very good since March, and we'll finish the year in an extremely strong position."

In addition to its braided rugs and handmade room-size rugs, Capel is making a big push into the accent and bath rug business this market, Capel added.

Also in "a sustained growth mode" is Oriental Weavers' Sphinx division, said Mike Riley, executive vice president.

This market, Oriental Wea-vers-Sphinx is adding to its Warhol line and also previewing its new American Geographic collection. Riley added that 2005 will bring several major changes for the company.

"We have recently instituted a U.S.-based design department that will make the product development process smoother and faster. We also are bringing new machinery on-stream in 2005 and expanding our international manufacturing to Turkey."

Rug companies aren't showing much that is specifically new for High Point this market, but they are adding designs to popular collections and focusing on products that are geared specifically to what is selling in furniture now.

And the light level of introductions doesn't mean that rug showrooms will be dull.

"You must have beautiful product to sell, otherwise the buyers won't come through your door," said Arash Yaraghi, a principal of Safavieh.

"We have developed a new line of Pakistani vegetable-dye rugs that are ready for immediate delivery. We've called and made appointments with buyers. All indications are that High Point will be a very good market for us."

Vendors also are realistic about how rugs fit in with High Point buyers' shopping plans.

"Rugs are not No. 1 on these buyers' lists of things to do," said Alex Peykar, a principal of Nourison. "However, we feel that the High Point market continues to be important, because it attracts retailers who may not attend the Atlanta market."

In the past year, rug vendors have been working harder to offer products that are in sync with what's selling in the nation's major furniture stores.

Being sensitive to the furniture business means paying attention to price points, according to Joan Catello, vice president of sales for Kas Oriental Rugs.

"A rule of thumb is that a rug should be 40% of the cost of the sofa," she said. "In today's market, that means the tonnage is in the $299 to $699 range for a 6 by 9.

"We've also seen a surge in interest in inexpensive Chinese-made dining room suites, so we're adding well-priced rugs in large sizes and shapes such as rounds and octagons."

Steve Mazarakis, president of Hellenic Rug Imports, said his company is working more closely with furniture retailers and manufacturers during the product development process.

"Our aim is to have the colors, designs and prices that are concurrent with the furniture that is selling now," he said.

This market, Hellenic is introducing rug collections under the World Vineyard home furnishings program.

Contemporary has become a major growth area for the rug business.

Momeni, which has had tremendous success in the past two years with a hand-tufted contemporary collection called New Wave, is adding several new designs to that line.

"The furniture market continues to build momentum in contemporary looks," said Reza Momeni, president. "As a result, a lot of rug vendors are getting into it, as well.

"The competition is good for the entire business, and there's still a long way to go before the market is saturated. Right now, there is a lot of room for everyone."

Jaipur Rugs, known for its hand-knotted traditional patterns, is one of the importers getting more deeply involved in contemporary design, according to Bob Kirby, president.

Jaipur recently announced an alliance with designer Janelle Lampp, whose Janelle Home contemporary collections are licensed to several rug makers.

"We've been playing with contemporary for a couple years. Now we have a commitment," said Kirby.

Most vendors view High Point as a plus event, where they see buyers who do not attend the Atlanta Rug Market, New York Home Textiles Show or Surfaces Floor Covering Expo.

"High Point has its own regular customers," said Lee Harounian, a principal of Harounian Rugs International. "We've got to be where those buyers are. Therefore, we support all markets."

While midmarket furniture and rug prices drift downward, there also is a renewed interest in high-end products, noted Joel Karimzadeh, president of M&M Design.

"Many large rug producers are chasing the mass market and big-box stores, but our focus is the high-end designer market," he said. "We can't have me-too designs. Our success is based on offering products that are clearly differentiated from the mainstream."