You gotta be there, but real challenge is marketing
Lissa Wyman, Rug Editor -- Furniture Today, September 10, 2007
When asked why he robbed banks, Willie Sutton famously replied, "Because that's where the money is." You'd think the same logic would apply to rug vendors. Why do they show in High Point? Because that's where the furniture retailers are.
But I've been hearing a lot lately about rug vendors leaving High Point. Shaw, a really big rug maker and a major partner of Kathy Ireland, quit High Point this summer. Karastan left last year, as did 828 International, Central Oriental and Delos. Executives at several large and small rug companies have told me they intend to leave after their current leases expire.
There's something wrong with this picture.
Rug vendors talk about how the furniture channel offers a huge growth opportunity. But if they don't go where the furniture buyers are, how can that happen?
Some rug companies are abandoning High Point to open showrooms at the Las Vegas World Market Center. That's logical, since Vegas is a pretty good place to find furniture buyers these days.
However, I don't think abandoning High Point for Las Vegas automatically will provide rug companies with penetration into furniture stores. There are plenty of furniture retailers attending High Point, particularly from the eastern United States.
The real challenge rug vendors face is not just being where furniture buyers are. It's a matter of marketing.
Willie Sutton, after all, let his presence be known at those banks he robbed. He wrote polite notes asking the tellers to fork over the dough. He waved guns around. He had to get their attention in order to get to the money.
With notable exceptions, marketing is the thing that's lacking. Rug vendors don't have merchandising programs, sales training or products specifically geared to furniture stores. Most rug salespeople are uneasy and unfamiliar with furniture stores.
Some of those exceptions — Surya, Miresco, Jaunty, Abbyson, Safavieh — have products and programs tailor-made for furniture stores. Klaussner, the furniture giant, has begun its own rug and accessory program tied directly to case goods and upholstery. I don't hear any complaints about High Point coming from these companies.
So maybe it's necessary but not sufficient to be in the same place as furniture retailers. Maybe rug vendors should work on programs for furniture stores. Only then will this channel reach its potential for the rug business.
