Looking ahead to 2024, the words innovation, custom and natural are top of mind for many rug manufacturers. Several players are also looking to grow their product offerings by either entering new categories or continuing their category expansions.
But overall, rug makers expect 2024 to be much like 2023 when it comes to the economy.
“The economic environment continues to be challenging, and yet we don’t intend on slowing down,” said Cyrus Loloi, principal and chief marketing officer for Loloi. “Consumers will always shop for rugs and textiles for their homes, so it goes back to remaining competitive and meeting customers’ needs where they are.”
Greg Jordt, executive vice president of sales and marketing at Harounian Rugs International (HRI), agreed. “With the rug business reflecting the rollercoaster of uncertainty that the economy and political environment has been during 2023, I don’t think anyone has much of an idea what lies ahead for the rug business in 2024,” he said. “I see no trend that indicates that 2024 is going to be any less challenging than 2023 has been.”
Rug makers say that although they continue to hear warnings about an impending recession, they plan to ensure they are prepared to thrive.
“We also know that during an election year, customer and consumer shopping trends evolve and lack consistency,” said Zoe Glade, Jaipur Living chief marketing and digital officer. “It is imperative for our business and any business in the category not to be dictated by these trends.”
New categories
Two rug companies that have ventured into new categories in recent years include Surya and Nourison Home.
Surya has expanded into upholstered furniture, case goods, rugs, lighting and more, due to its recent acquisitions of Global Views, RST Brands for outdoor and the Mitchell Gold+Bob Williams brands.
Nourison Home added home accessories, bedding and other home textiles, lighting and custom items to its lineup just this year.
“If managed properly, category expansion can help grow your company, but I believe you still need to be focused on your core business and strengths to stay successful,” said Giovanni Marra, Nourison Home’s vice president of marketing and creative. “Yes, it can be a realistic growth strategy for companies, but it needs to be handled strategically. The expansion should complement your core business and not dilute your strengths.”
Other rug companies that have added categories include Unique Loom, which also offers pillows and mats, and Loloi, which sells pillows, wall art and throws.
“We predict rug brands will expand into other new categories in the home industry. The intersection of customers is just too strong to ignore it,” said Loloi. “It just makes sense with how the trade buys textiles and how consumers develop loyalties for brands.”
But other rug companies plan to stick with what they do best, making beautiful rugs. The push for expansion often depends on the specific company, its size and what its future goals are.
“I wish everyone who is going into this arena the very best,” said Wendy Reiss, Kas Rugs vice president of sales and national accounts. “The rug industry is a small and close knit one, so wishing each other great success is important and helps us all do well.”
Room to improve
Manufacturers say that although the handmade rug industry has been around for hundreds, if not thousands of years, there is always room for improvement.
“From out-of-the-box rug shapes and sizes to unique new high-performance and home-healthy fibers, we’re seeing exciting trends in customer demand, and we think that this will only continue,” said Alyssa Steele, Rugs USA CEO. “We believe empowering customers to not only express their personal style, but also to find the perfect rug that meets their exact lifestyle and needs will be a huge focus in the year ahead.”
“Innovations have resulted in more choices for rug buyers than ever before,” said David Jolley, Unique Loom vice president of sales. “Our company is at the forefront of these advancements with continuous investments in new machinery, design and technology.”
Kas’s Reiss believes that the industry has learned a lot in the past couple of years since the start of the pandemic. She is now looking forward to the industry creating, growing and thriving in the new year.
“As we all know, there have been a lot of hiccups in the industry whether it be in transportation, manufacturing, etc.,” Reiss said. “I look forward to the industry playing in offense mode vs. defense mode (sorry, big college football fan here) next year, and there are signs that point to that.”
She believes the rug category is always in a state of change. But for 2024, she said Kas will continue to see the importance that handmade rugs play in the marketplace. “While machine woven products are still important, the emphasis for machine made will be on innovative new products with a continued focus on easy care and washable.”
Custom counts
Some of the customized rug features that will rise to the forefront in the coming year include sizing and production time, according to manufacturers. With new, grander homes being built, as well as smaller homes with open floor plans, it’s important to offer larger sizes at scale.
“We now offer custom sizes from day one,” said Satya Tiwari, president of Surya. “We offer a program where any handmade rug can be customized at any time.”
Natural fibers
When it comes to consumer tastes, many people, especially millennials and Gen Z, are looking for more natural items to bring into their homes, rug makers say.
“Nature does it best,” said Jaipur Living’s Glade. “Sometimes the epitome of luxury means that a material or product has been altered from its original state in the fewest ways possible. We see biophilic design constantly on the rise, as well as a resurgence of materials that shine in their own natural glory – undyed, unaltered and straight from the source.”
Companies such as Nourison Home are also seeing a growing demand for natural fibers, according to Marra. For Capel Rugs, the push for natural rugs is music to their ears.
“We find that environmentally conscious consumers are interested in undyed, natural and earth friendly products,” said Cameron Capel, president of sales and marketing for Capel Rugs. “Capel has a lot of them, so we are well set in this category for 2024.”