Oriental Rug Marketing in the United States and the Role of the Media
Leslie Slocum
My main purpose is to describe, point by point, the new Oriental rug market in the United States and the ways rugs are bought there, from the low end to the high end, and, by presenting details, to relate this description to the marketing of Iranian rugs. To begin, I will identify five geographic regions: the Northeast, the Southeast, the Midwest, the Southwest, and the West, with particular remarks on New York and California.
My recent surveys give a fairly accurate average of the activity of specialist Oriental rug dealers across the United States. Although there are countless rug dealers outside the sphere of the retailers, we have gathered information on their market and their buying and selling history, which shows that these known dealers make up 36 percent of the entire network.
Looking at who these people are, and according to some accounts, retailers have been established in a single city (not a single neighborhood) for upwards of 25 years. These retailers adhere to the rule of prompt and straightforward payment; 50 percent of them are members of the Oriental Rug Retailers of America and always follow the specific rules of the industry's code. Many of these retailers belong to the second and third generations of rug retailers in America, whose core business was based on selling Iranian rugs, and they still continue to sell new and old rugs of Persian design. These retailers' work is devoted to developing the market for Oriental rugs in the United States, making use, of course, of every available business opportunity.
These people have never sold outside the law of the trade, never taken part in illegal auctions, and never bought counterfeit or smuggled rugs.
For this purpose, I will describe the retail price of the popular 8 × 10 ft (2.4 × 3.1 m) size at the high end, with a minimum price of US $3,500. I will then describe the retail price of the 8 × 10 ft size at the low end of the market, at a price below US $1,500. In most cases the standard size in question is 9 × 12 ft, or 2.7 × 3.6 m, but my research shows that retailers sell three times as many 8 × 10s as 9 × 12s. The selling patterns in each region are as follows. The Northeast region includes the New England states and Washington, D.C. New England is very traditional and attached to custom; the market wants geometric patterns and blue and red, and old Iranian rugs are very popular. New Iranian rugs can probably also be sold at medium prices, owing to the popularity of discount stores and their spread across the eastern United States.
At present, good sales require stocking better-quality goods, especially in conditions of economic crisis. It is therefore no surprise that Indian rugs in Kashan designs hold the best sales position in the East. Dr. Eiland showed us slides of many of the current best-selling rugs.
The Southeast region includes 10 states. It is the only region whose retailers sell the 10 × 14 ft size well. New homes in this area are getting bigger by the day, and their owners work with interior decorators. Culturally, of course, this region does not keep pace with New York, and for that reason decorators here often follow the retailers' lead. Looking a little closer, one finds that none of the retailers agree to selling low-quality goods, and this market is once again dividing between the wealthy and the middle class. Small dealers, who are also specialists, understanding that good business is possible only through selling high-volume goods, show little inclination to stock goods for the middle class. The only popular design in this region was the Heriz design. Chinese rugs were also included in the inventory. In this area many rugs with a traditional red field are sold, and lighter colors such as cream and light green are very common and customary.
The Midwest region includes 12 states. There, 8 × 10 or 9 × 12 ft Bijar designs in blue or red sell well; nevertheless, traces of the influence of Heriz and Kerman designs can be seen in Indiana. According to my personal findings, people in this area are very keen on Oriental rugs, and the area is considered a good market for these rugs.
The Southwest region comprises 6 states, including Texas. This area is probably one of the most difficult regions for Oriental rugs to break into. This is due not only to the scattered nature of its cities but also to a strong and distinctive rural tradition in the area, derived mainly from Hispanic peoples and Native American motifs. In short, with the spread of this area's particular style throughout all the states, the Navajo rug and blanket tradition has been revived in all types of rugs in this region. This style is a blend of neutral shades of light brown with yellowish-brown or green tones. Mr. Gibson will no doubt give more details about the style of this area.
The Western region comprises 11 states, including California, and I know this region well, not because we have sold most of our rugs here, but because we travel to California at least once a year. Nevertheless, the selling power of geometric-design rugs in this region is astonishing. The 8 × 10 ft size is again among the best sellers, and Kerman and Sarouk rugs are thoroughly well known throughout the region. Los Angeles is a special case, because it holds the largest population in the region, but the majority of its residents are busy enjoying its year-round climate and spending their time playing golf and sunbathing by their pools.
They often spend their income on cars or golf equipment, so rugs and other interior furnishings come second in importance. My 1990 trip among West Coast dealers, and the related rug reports, go into more detail about the California market.
Given the geographic and economic mobility of Americans, all kinds of rugs can be sold in every part of the country. Retailers swore that they had been unable to sell light-field Kerman rugs, yet after stocking the 4 × 6 ft size they have been steadily selling rugs from their samples. In most cases, fifty percent of small dealers sell Oriental rugs while also washing and repairing them. What a dealer sells reflects his personal taste. Likewise, the secret of a dealer's or repairer's success is that cleaning and repairing rugs creates ever greater satisfaction in the market. They are well able to guarantee satisfaction with their products. As for color, everyone across the country wants rugs with a dark green field, though I think this is a five-year trend and gold and cream colors will soon take its place.
Statistical evidence confirms that 95 percent of Americans do not use their domestic machine-made rugs. When buying a local rug, its retail price will be $100 instead of $1,000, and such a statement of existing patterns is entirely understandable for Iranian producers. To make an opening in the American market, coarse, low-end goods in red, blue and green, in sizes of 8 × 10 and 4 × 6 ft, should be used. Small dealers buy these goods so that they can fill their stock and have goods to offer the first customer.
The second focus of my discussion is the print publishing of the Oriental rug industry and the electronic media, or television. Recently, the rug trade media in America have not been allowing Oriental rug producers to advertise. In any case, the only way for producers to stay connected with the vast American market is through subscription magazines. I have brought some samples of the major trade magazines for interested participants and attendees. The distributed notes also include a recent list of trade magazines that have succeeded in penetrating the American market. These magazines contain useful information on American market trends for Iranian producers and exporters. Among the other services and benefits of these magazines are freedom of the press and the control of rumors. These magazines also have many followers because they print serialized stories and interviews with international sources. A recent informal survey by the readers' column of Rug News magazine shows that people want to know more about rug makers and weavers, how dyeing materials are prepared, and how wool is spun. Buyers and sellers also want to hear details of the daily life that affects the craft of rug weaving. Quality films such as "The Evergreen Garden" help American dealers in promoting Iranian rugs. Another way to market Oriental rugs in the United States under this embargo is to establish a magazine devoted to the Iranian rug industry for the use of importers and large dealers of these goods. I have brought a sample of an English-language magazine published by Pakistani producers. Gaining new perspectives on the rug trade is useful and eye-opening for importers. In addition to print media, another kind of trade called "home shopping" has recently been very effective, and huge chain stores have set aside booths to promote this emerging segment of the market.
In one of my notes I have included a copy of an editorial from Decorative Rugs magazine, which proposes including a section on handwoven Oriental rugs on a new cable network. Without doubt, the beauty of Oriental rugs is doubled on television. Fewer than 20 percent of dealers have turned to exploring the possibility of television advertising. Why? Because it does not persuade the audience.
The most effective way to test-market Oriental rugs is shipping by sea in containers, with packaged goods, to large, well-known, high-volume dealers in the markets of designated regions. Given current market conditions and the US embargo on Iranian goods, achieving this goal is impossible. Taking part in local or regional trade shows for home furnishings and floor coverings is another effective way to gain practical information about interior decorating, colors, and customers' general attitudes.