Reflections on the Current Marketing of Iranian Rugs in Europe and Its Future Prospects

Fritz Langauer

The author is a veteran and authoritative merchant with experience in trading all kinds of Iranian carpets.

Let us go back a hundred years. In the late nineteenth century, the commercialization of the Iranian handwoven rug began slowly but steadily. In 1891, Iranian rugs were presented to European society in large quantities for the first time, at the World Exhibition in Vienna. At that time, and even in the early part of this century, only aristocrats and those known as wealthy nobles could afford genuine Iranian rugs; for the middle class this was truly impossible, because compared with the standard of living in those days, Iranian rugs were very expensive.

Over time this situation changed fundamentally. In the 1920s and 1930s, huge quantities of Iranian rugs were exported to America, and with the beginning of Germany's progress after 1945, demand for Iranian rugs grew. The Iranian rug, which was always in fashion and never lost its popularity, gradually became a symbol of prosperity in Central Europe, especially in Germany, Austria and Switzerland. For Germans, a house or apartment with a Mercedes-Benz outside and an Iranian rug inside was often seen as a reflection of success. At that time the Iranian rug had acquired great intangible value, a belief that will probably never be repeated. In those days there was an exciting image of Iran, and Iranian works of art were valuable handicrafts which, because their prices kept rising, were considered an investment and were highly prized.

Allow me to state something I deeply believe. Today, Iranian rugs, as well as rugs from other countries such as Turkey and Afghanistan, are very cheap for us Europeans. As a result of economic developments, financial policies, and exchange rates, after 1985 the Iranian rug became considerably cheaper for us wealthy Europeans. Many may find it hard to believe if I say that we in Central Europe are becoming more successful and more efficient by the day. The year 1985 marked the beginning of a rapid fall in the value of Iran's currency against the dollar, while the dollar, for its part, also became considerably cheaper in Europe. As a result, the price of Iranian rugs in Central Europe fell by more than 50%. In the 1970s it had been predicted that the value of Iranian rugs would increase over time, which of course did not happen; as a result of the fall in prices, most inhabitants of Central Europe gained the ability to buy Iranian rugs. Today almost every European can own an Iranian rug, just as you can buy a stereo system for 300 German marks wherever you like. If you feel the necessary cultural inclination, you can buy a genuine Oriental rug for 1,000 or 2,000 German marks, although I believe Iranian rugs have become far too cheap in Europe. I also know that neither I nor anyone else can change this situation.

I want to tell you a story that could happen at any moment. It is a story about a couple who live in Central Europe. The husband has a good income, and the wife, despite looking after the children, holds a well-paid part-time job. Both of them bring home good money every month and can easily spend freely. The husband does not mind paying a lot for a suit by Christian Dior or the like, and his wife buys her clothes from Jil Sander and Christian Lacroix and her belts from Gucci. They attach great importance to having a beautiful home and are ready to spend large sums on their living-room furniture.

One evening, while strolling through the city streets, they stop in front of a rug shop window and, among other rugs, they look at a genuine Afshar zaronim [a rug of about one and a half zar]. What an attractive rug, priced at 2,300 marks (crossed out, and beneath it written: only 1,150 German marks). The wife likes this Afshar zaronim and buys it the next day. For many Europeans this is not a large sum, and this rug, like many other items, can find a place in their home.

Now picture yourself in the position of an average Central European wage earner. His thoughts are focused on quality, and he is ready to spend a lot of money on quality. A product offered at a discount of fifty percent or even more, as is the case with rugs throughout Europe today, as in bankruptcy sales and clearance sales, which of course we all know are not real but fake, and which is offered to the customer like a fashion item, cannot have emotional value for the consumer.

The genuine Iranian handwoven rug, because of its not-so-high price and especially because of dubious and misleading pricing methods designed for unreal discounts, has been degraded to the level of worthless goods. Compared with the heavy expense a European family incurs for decoration, chairs, furniture, curtains and other living-room items, which lose their value quickly after purchase, carpets retain their value. This Afshar rug, however ordinary it may be to us, is a handmade product rooted in tradition, made with great toil; even after being underfoot for a long time, it is one of the few household items that can retain some of its value. Thus we tread not only on these rugs but also on the tradition that lies behind them and their makers.

Before 1985, our couple would have had to pay 2,700 marks instead of 1,150 for this same Afshar rug. And certainly it would not have been offered at a 50% discount either. In those days everyone knew that a rug's value increased by 10 to 20 percent a year. Even a small Afshar rug was a motivation and a symbol of long-term investment. Knowing that the prices of Iranian rugs were constantly rising, people were proud to own these works of art and showed them off to their friends. Looking back, we realize that this was the best kind of marketing for Iranian rugs and other Oriental rugs.

Now put yourself in the period before 1980. In those days everyone believed that such rugs were symbols of long-term investment and that their value rose by 10 to 20 percent a year.

Because of the belief that the value of Iranian rugs was constantly rising, people were proud to own this handwoven product, and this was the best way to market Iranian rugs. A few years ago the price of diamonds fell considerably. But those in the trade knew how to preserve the prestige of gold and diamonds.

But the situation of Oriental rugs is very different. Speculators constantly tarnish the good reputation of Iranian rugs for short-term profits. They auction off valuable cultural objects like a fashion item or a necktie.

If someone attaches importance to this matter, does not think only of short-term gain, develops a real understanding of this product, and shows a little foresight, there must surely be ways to influence the current situation positively. Unfortunately, there are many merchants in Iran and Germany engaged in buying and selling Iranian rugs who have not the slightest commitment to them. For them, trading rugs is no different from trading coal or copper. They think only of the profit they make. Thank God there are still people who know that they are marketing the cultural assets of a society.

I personally predict that in the future the marketing of Iranian rugs will divide into two groups: one consisting of department stores and home-furnishing chain stores with cheaper products, and the other of specialist shops which, as needed, must consider themselves committed to quality and artistic value.

I look at this matter with positive thinking, which is as follows:

"Efforts must be made to offer rugs of superior quality, woven from good wool and with fast colors. Artistic and national works must set the tone of the market, and pricing must be serious and free of exaggerated discounts. Europeans are ready to spend money on truly fine goods."

European trade organizations and consumer protection agencies should strive to acquaint European society with the good quality that is still available, and with the national arts and special skills used in weaving genuine rugs, and they should make the activities of opportunistic sellers difficult.

Another problem in the current situation is the quality and artistic value of Iranian rugs. In recent decades, the quality of the wool and especially the distinctiveness of the appearance of Iranian rugs have been severely damaged. One example is the negative trend in Nain. On the other hand, some positive developments have also been seen, and these should be encouraged.

The innovation of gabbeh rugs should be noted, for their hand-spun wool and use of natural dyes.

Now I would like to draw your attention, and especially that of you Iranian officials, to the advantages of production in small workshops. At present, establishing small production workshops in Iran is impossible, and as far as I know there is no financial assistance at the national, provincial, or municipal level. Instead, if someone wants to put up a building, he must first pay staggering sums to obtain a permit, and no merchant will take on such risks alone, but the government steps in with support through loans. If the government were to provide such support for rugs as well, the potential risks would be considerably reduced.

Numerous examples show the fact that even today good, artistically valuable and satisfying rugs can be produced in Iran.

Producing rugs, or creating an organization for the purpose of producing rugs, is not within the government's remit. But providing every possible assistance to producers and their families, when it is clear that valuable work is under way, is among the government's duties.

I am certain that the marketing of Iranian rugs can be improved in various ways, and I believe that a great many efforts are needed. Otherwise, because time is concentrated on fashion goods, the image of the Iranian rug will be tarnished.

Naturally, the above suggestions only sketch the approximate scope of the activities, and further discussion and more examples can lead to the emergence of more viewpoints.