Market Research Corner

by Carol Milano

Import Figures For 1998

The Carpet and Rug Institute has released their summary of U.S. Department of Commerce import figures for 1998. For handmade oriental rugs, the top five countries are, once again, India, China, Pakistan, Turkey and Nepal (in that order). From all sources of handmade oriental rugs, the U.S. imported a total of 106,929,000 square feet in 1998-a sharp increase from the 1997 total of 87,300,000 square feet. The increase in dollar value of imports was similarly dramatic-climbing to $422,549,000 in 1998 from $335,505,000 in 1997.

Consumer Rug Buying Habits Studied

A recent study, "The Most Important Considerations In Making An Area Rug Purchase," found price to be the paramount factor for today's shopper, followed by wear and durability. Even in a booming economy, budget and value lead. In third place was color and pattern. The next concerns, stain resistance and ease of care, may reflect the time pressures of working families. Tied for sixth place are size and fiber content. Other "top ten" considerations: extended warranty, brand names, stain resistance and immediate availability.

Conducted by HFN and Beaulieu Rugs, the study found consumers' choice of color and pattern influenced by their wall colors, floor finishes and upholstery fabrics. Jewel and earth tones were the most popular colors in area rugs. Approximately one fourth of those surveyed preferred pastels. Nearly half were looking for patterned rugs. Color and design choices vary by region. Northeastern shoppers lean to more traditional looks, Southwesterners to brighter colors and patterns. In home decorating styles, 40% of shoppers consider themselves traditional, 19% prefer a country look, and 18% like contemporary or modern.

The HFN/Beaulieu Rugs Consumer Study surveyed situations prompting purchase of a new rug, and discovered that 62% of consumers want to replace a worn or damaged rug. 57% seek a new rug to coordinate with new furniture. Approximately half the respondents are spurred by renovation, a move to a new home, or installation of a new hard-surface floor. More than one-third buy a rug to use with their wall-to-wall carpeting.

Nearly half look for a rug made in the U.S. Only one-fourth choose synthetic fiber, while 40% pick wool or cotton. The lifestyle changes prompting a rug purchase are salary increase (18%), marriage (12%), new baby (9%), job change (7%), or divorce (6.5%).

Trend Indicators Upbeat For Rugs

Hard-surface floorings-such as ceramic tile, vinyl, hardwood and even concrete-continue to grow in popularity. Their appeal is good news for retailers of area rugs, which provide softness, warmth and style to offset the cold feel of a hard surface. A fast-growing category, area rugs are popular because they're affordable, durable, easy to maintain and versatile.

Implications

The survey suggests several opportunities to promote your store. For example, develop a card or flyer featuring your rugs in vignettes that can be placed in hardwood or ceramic flooring showrooms, photography studios (for those wedding and new baby situations), or other places that people visit during the lifestyle changes noted in the study. Another idea: if your store does not carry furniture or accessories, suggest to a local dealer who doesn't carry rugs that you showcase your respective products in each other's vignettes.

IMPORTS OF HANDMADE ORIENTAL AND TUFTED RUGS 1997-1998 (000's Omitted)
FROM CHINA, INDIA, NEPAL, PAKISTAN AND TURKEY

  TUFTED
1998
TUFTED
1997
  HANDMADE
ORIENTAL
1998 
HANDMADE
ORIENTAL
1997
 
Country
of Origin
Sq.Ft. Dollars Sq.Ft Dollars % Change
Sq.Ft./
Dollars
Sq.Ft Dollars Sq.Ft Dollars % Change
Sq.Ft./
Dollars
China 50,391 $83,768 38,619 $64,710 30.5%/
28.5%
19,926 $96,634 15,723 $56,498 26.7%/
71.0%
India 25,407 $39,461 23,040 $37,812 10.3%/
4.4%
63,297 $164,043 51,723 $16,751 23.3%/
40.5%
Nepal 27 $203 9 $134 200%/
51.5%
3,213 $24,073 1,962 $15,098 63.8%/
59.4%
Pakistan 83 $418 27 $42 133%/
895.2%
12,870 $81,529 11,376 $68,683 13.1%/
18.7%
Turkey 36 $121 72 $210 50.0%/
42.2%
3,780 $39,909 3,195 $33,781 18.3%/
8.1%

Source: U.S. Department of Commerce, Bureau of the Census, IM 146. Dollar value reported F.A.S country of origin - not included freight or duty cost