RUG NEWS - PageTurnPro.com NEWS and . ... KARASTAN, FABHABITAT 12 COLLECTIONS—WARPANDWEFT, ... PekiNg haNdiCRaft - faMilY ROOM kas

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POB 441MORRis, NY 13808 ChaNgeseRviCeRequested

RUG NEWSand

WWW.RUGNEWSANDDESIGN.COM Design

DECEMBER 2012

STOP PRESS: Record Traffic and SalesThanksgiving Weekend

By The Numbers: The Future Of The Knotted Rug Business

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By Leslie Stroh

EMBRACING SOCIAL RESPONSIBILITY

ONLINE ACTIVITY

4 www. rugnewsanddesign.com DECEMBER 2 0 1 2

Walking the Market is NOW online at www.WalkingtheMarket.com

Visit Walking The Marketon

www.rugnewsanddesign.com

We Walk the Market LIVE

so you can

See What We See

As We See It

ObservationsEmbracing Social Responsibility ° Online Activity °Comments

continued on page 8

22

4 OBSERVATIONS — BY LESLIE STROH

10 COLLECTIONS — PEKING HANDICRAFT, TIBET RUG COMPANY, AMS IMPORTS, KAS, KARASTAN, FAB HABITAT

12 COLLECTIONS — WARP AND WEFT, EBISONS HAROUNIAN IMPORTS, LIORA MANNÉ, FOREIGN ACCENTS, LOLOI RUGS, RIZZY HOME

14 COLLECTIONS — SHAW LIVING, MOMENI, NEW MOON, FEIZY, THE RUG MARKET, SHABBY CHIC

15 STOP PRESS: RECORD TRAFFIC AND SALESTHANKSGIVING WEEKEND — BY JACK MAIER WITH LESLIE STROH

16 COLLECTIONS — MICHAELIAN & KOHLBERG, CUSTOM COOL, JAUNTY, NOURISON, DYNAMIC RUGS, THE KOKO COMPANY

18 COLLECTIONS — TOGAR RUGS, COMPANY C, ARZU STUDIO HOPE. DUE PROCESS STABLE TRADING CO., AZRA IMPORT, SADDLEMANS OF SANTA FE

20 SAMPLES VERSUS STOCK IN KNOTTED RUGS — BY LESLIE STROH

22 BY THE NUMBERS: THE FUTURE OF THE KNOTTED RUG BUSINESS— BY ROB LEAHY

26 NOT YOUR GRAMDMOTHER’S NAVAJO RUG— BY SARAH STROH

12

designers’ notebook

RUG NEWSand

WWW.RUGNEWSANDDESIGN.COM Design

ON THE COVER: DECEMBER 2012 — INSPIRED BY AN EARLY AD THAT RAN IN RUG NEWS,TIMELESS STYLE IS THE THEME OF THIS COVER FROM MOMENI. THE RUG IS FROM THE HAND-HOOKEDGEO COLLECTION. MADE OF 100 POLYESTER WITH A BEAUTIFULLY SOFT HAND. FROM THE EDITOR: “MOMENI, (ALONG WITH G.A. GERTMENIAN & SONS) HAS BEEN ADVERTIS-ING IN RUG NEWS CONTINUOUSLY SINCE WE STARTED — OVER THIRTY YEARS. WE TRY TO KEEP ED-ITORIAL SEPARATED FROM ADVERTISING, BUT WE ARE SO PROUD OF OUR LONG STANDING RELA-TIONSHIP WITH MOMENI, THAT WE WANT TO SHARE WITH YOU THIS COVER DESIGN IN A FRESH PRES-ENTATION OF OLDER MATERIAL. WE ARE EXCITED BY THE CREATIVITY."

28

27 NANCY CROMAR, ASIDNC STUDIO, MIAMI, FL

28 JULISSA DE LOS SANTOS, ASID CONCEPTS & DESIGN STUDIO, MIAMI, FL

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COMMENTS

b



is published at 127 Main Street, Morris NY13808 • (P.O. Box 441) Tel. 607-263-5411SENIOR EDITOR AND PUBLISHER: • Leslie Stroh • [email protected] NOTEBOOK AND COLLECTIONS EDITOR: • Dasha Morgan•: 828-676-6011

[email protected] EDITOR • Sarah Stroh. • [email protected] DIRECTOR/PRODUCTION DIRECTOR • Ellen G Bair • [email protected] SERVICE: • 607-263-5411 • [email protected] 1 Year:- $78.00 Domestic, $100.00 Canada, $162.00 International By Air. Payment in US Dollars. Canada Agreement number: PM40063731 Return Undeliverable Canadian Addresses to: Station A PO Box 54, Windsor, ON N9A 6J5, email returns: [email protected]

Copyright RugNewsandDesign 2012. All rights reserved. Online at www.rugnewsanddesign.com.Advertising is by invitation of the Publisher.

RUG NEWSand

WWW.RUGNEWSANDDESIGN.COMDesign

Observationscontinued from page 4


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Tepp Team USA100 Park Plaza Drive, #102 S

Secaucus, NJ 07094

Ph: 201.863.8888 • Fax: 201 863 8898

[email protected]

www.teppteamusa.com

FINE PERSIAN RUGS

OVERSIZED RUGS

INDIAN & PAKISTANI RUGS

By Jack Maier with Leslie Stroh

DECEMBER 2 0 1 2 www. rugnewsanddesign.com 1 5


continued on page 16

STOP PRESS: Record Traffic and SalesThanksgiving Weekend


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FROM JACK MAIER

STOP PRESScontinued from page 15



Table 1: Sales, Advertising and Multiplier, 2008-2012

2012 2011 2010 2009 2008

Sales $ 956,352 $ 596,626 $ 602,965 $ 472,637 $ 808,998

Advertising $ 133,265 $ 84,006 $ 148,647 $ 100,103 $ 209,311

Advertising as % of Sales

14% 14% 25% 21% 26%

Multiplier 7 7 4 5 4


Source: David KhazaiNotes: “Multiplier” is sales divided by advertising. Data for 2012 is for year to date through November 15.


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STOP PRESScontinued from page 17



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Table 2: Sales, Advertising and Multiplier, Black Friday-Cyber Monday

Sales Advertising Multiplier

2012 $ 74,623 $ 12,112 6 2011 $ 150 $ 0 2010 $ 9,428 $ 3,074 3 2009 $ 2,322 $ 2,043 1 2008 $ 3,429 $ 1,158 3

Source: David KhazaiNotes: “Multiplier” is sales divided by advertising.

www. rugnewsanddesign.com DECEMBER 2 0 1 2


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Samples Versus Stock In Knotted RugsBy Leslie Stroh

Rug#: 11234

Quality: 120 LINE

Design: AUBUSSON Color: GREEN

Content: 100% WOOL PILE

Country : HAND KNOTTED IN CHINA

Size Width: 2’ 0” Length: 4’ 0”

Bale: ONU

Your Store Name

Available Sizes

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2x6 8x10

3x5 12x24

4x6 12x18

vailable SizesBalaleA

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by Rob Leahy

Growth Returns, But UnevenlyAs I prepared for the Afghanistan/USA Carpet Conference

(From Sheep to Shop), held in Dubai September 20-22nd

of this year I collected a large amount of information for

presentation to the participants. From these data a picture

appeared that was encouraging on one level, but discon-

certing on another. The bright spot was that the rug busi-

ness is getting its strength back after a dramatic decline in

2008-2009. The disturbing news, however, is that the hand

knotted segment is not recovering. Digging deeper into the

details I found indications that it may never come back.

As world demand for the purchase of items such as area

rugs improves, hand tufted rugs are taking an ever growing

share of the market. Using import data to the USA, it is ap-

parent that tufted rugs are now over 50% of the market; up

from less than 25% five years ago. To further put this

growth into perspective, these data are in dollars and since

tufted rugs have a 3 or 4 : 1 cost relationship to hand knot-

ted rugs, the unit growth is amazing. The unit growth is in-

dication, though, that new consumers are coming into the

US rug market.

Producing countries comparedI feel that the most important factors controlling the com-

petitive relationship between countries is relative cost ad-

vantage versus the ability to produce innovative products

compared to other countries, or product differentiation.

The diagram to the right depicts my view of the relationship

of the world’s major shippers comparing these two metrics.

While subjective, the result is a graphic representation of

expected sourcing trends in the hand knotted rug business.

Beginning with the world’s largest producer of hand knot-

ted rugs, India has increased weavers’ wages and new in-

dustries locating in carpet making districts have been at-

tracting workers. Meanwhile, there has been a wave of



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product development at Indian rug makers. Notice that the

arrow for India moves up in differentiation and slightly left

marginally reducing the country’s former cost advantage.

The movements depicted by the arrows are relative to each

other as can be seen with China compared to India.

China’s weaving companies have taken themselves out of

the market for handmade rugs re-directing investment to

machine assisted carpets such as the hand tufted rugs.

China’s arrow moves downwards in differentiation and well

away from a cost advantage.

Iran is under embargo for rug shipments and legal exports

to the US have dropped to zero. Banned from its most vi-

able markets, there is little incentive to create new styles or

methods. However, because of the historical diversity of the

products made there, Iran’s relative position in product dif-

ferentiation stays the highest.

Turkey once had an ideal balance of highly varied product

and efficient low cost production. A combination of

weavers retiring from the field and other job opportunities

for the remaining workers has decimated the rug weaving

business in Turkey. Consequently, the country has one of

the most dramatic moves shown in the diagram.

Pakistan remains the world’s second largest shipper of

hand knotted carpets There is no certainty as to how much

of Pakistan’s shipments are native or of Afghan origin.

Consequently, these countries are linked and the relation-

ship will continue for many years into the future. Pakistani

carpet companies have become more innovative and con-

centrated on higher value products. Pakistan moves well up

the differentiation scale, but loses much of its relative cost

advantage.

Afghanistan will have expanded options in product differen-

tiation as Pakistan teaches the Afghan traders new skills



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and methods. Sophistication and efficiencies over time

should add cost advantages and put the Afghans in a

very favorable position near the optimal center point of

the chart.

(Note: Nepal continues as a major factor in handknot

rug production, but is not shown on the diagram be-

cause of minimal product differentiation and the unique-

ness of the Tibetan weaving technique prevents country

to country price comparison.)

Rational Expectations

Carpet making has been said to be the world’s second

oldest profession. Selling rugs, until the past fifty or sixty

years, has always been a trade based on hand-made

crafts from remote and inspiring places. The business

had, until recently, withstood industrialization like no other.

Having reviewed and considered the prospects for

handmade carpets in all of the world’s rug producing

countries I suspect that the Afghan trade is the last

stand for the hand knotted carpet business. For one

reason or another each of the current rug making coun-

tries has limited or is moving away from handmade pro-

duction and unlikely to be able to reverse that trend.

Today, competition from Pakistan and Afghanistan, by

association, is preventing runaway price increases in

hand knotted rugs. Higher prices for hand knotted rugs

will no longer attract workers or re-investment back to

the hand knotted segment. Too many other options for

workers have arisen and other choices for rug con-

sumers have been developed.

If today’s Afghan weavers are not able to pass on rug

making skills to the next generation, the world’s only

growth source for handmade carpets will disappear.

Prolonged civil unrest in either Afghanistan or Pakistan

will severely weaken the carpet trade’s relationships with

buyers and the consequent lack of demand may pre-

vent this generational knowledge transfer.



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LLCInternational

By The Numberscontinued from page 23

H.M. NABAVIAN & SONS, INC.ORIENTAL RUG ACCESSORIES & SUPPLIES

36 E. 31st ST, BASEMENTNEW YORK, NY 10016

Phone: 212-213-2476, Fax: 212-213-4276, Orders: 800-352-7510

View, print or download our catalog at www.hmnabavian.com

Rug Wrapping PapersPacking & Shipping SuppliesTags & Tagging Supplies

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Persian & Appleton Wool Yarns, Cotton & Linen ThreadsNeedles, Scissors & Rug Repair ToolsRug Shearing Machines and PartsMoth Sprays, Moth Balls & Flakes

Staple Guns & StaplesRug Padding, Rolls & Cut Sizes

Brass Stair RodsInks, Paints, Dyes, & MarkersPens, Pen Holders, & Brushes

Rug Cleaning SuppliesSpot, Stain, & Color Removers

For more detail please visit our web-site orcall for our catalogue.



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NNoott YYoouurr GGrraannddmmootthheerr '' ss NNaavvaajjoo RRuuggBy Sarah Stroh

26 DECEMBER 2 0 1 2

I


WHAT MARKETS DO YOU REGULARLY ATTEND?

DO YOU HAVE A FAVORITE STYLE OR FIBER OFRUG?

DO YOU SHOP ONLINE VERY OFTEN?

HOW IMPORTANT IS IT TO YOU THAT SOMETHINGBE NEW TO THE MARKETPLACE?

DO YOU BUY CUSTOM RUGS?

ARE THERE ANY DESIGN RULES YOU PARTICULARLY LIKETO FOLLOW OR TO BREAK?

WANT TO SEE MORE? GO TO WWW.NCSTUDIOINC.COM


Often an area rug can be agreat inspiration as a

starting point to a design.“ “

Nancy Cromar, ASIDNC Studio, Miami, FL


WHAT MARKETS AND DESIGN CENTERS DO YOUREGULARLY ATTEND?

DO YOU HAVE A FAVORITE STYLE OR FIBER OF RUG?

DO YOU SHOP ONLINE VERY OFTEN?

HOW IMPORTANT IS IT TO YOU THAT SOME-THING BE NEW TO THE MARKETPLACE?

HOW OFTEN DO YOU BUY A CUSTOM RUGAND WHY?

ARE THERE ANY DESIGN RULES YOU PAR-TICULARLY LIKE TO FOLLOW OR TO BREAK?

WANT TO SEE MORE? GO TO WWW.MODERNHOME2GO.COM.


“ “I normally attend the trade shows,or I meet personally with my

suppliers

Julissa De los Santos, ASIDConcepts & Design Studio, Miami, FL

www.lioramanne.comwww.transocean.com Studio and Showroom 210 Eleventh Avenue 7th fl , New York, NY 10001 212.989.2732

bleed

trim

live

bleedbleed

trim

live

bleed

trim

live

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trim

live

bleed

trim

live

trim

live

bleed

trim

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trim

live

Rug News Magazine December 2012 Ad Layout 104051

FEIZY CENTER / 1949 STEMMONS FREEWAY / DALLAS, TX 75207 / 800.779.0877 / [email protected] / WWW.FEIZY.COM©2012 FEIZY IMPORT & EXPORT COMPANY®, LTD.

D A L L A S | H A M B U R G | H I G H P O I N T | L A S V E G A S | N E W Y O R K

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Las Vegas MarketWorld Market Center

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NOURISON INDUSTRIES5 Sampson Street, Saddle Brook, NJ, 07663

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RUG NEWS - PageTurnPro.com NEWS and . ... KARASTAN, FABHABITAT 12 COLLECTIONS—WARPANDWEFT, ... PekiNg haNdiCRaft - faMilY ROOM kas