Nationwide Oriental Rugs Sales Falling due to Struggling Economy reports Rug Studio

(EstateNewsWire.com, November 25, 2012 ) San Antonio, TX -- Due to customer’s to buy cheaper, machine-made rugs, paired with a sluggish national economy, the handcrafted Oriental rugs market has fallen dramatically in recent years.

As a result, customers are opting for less-expensive tufted or machine-loomed rugs, even though handmade Oriental rugs will last much longer.

According to the Oriental Rug Retailers of America, business is down nationwide between 20% and 70%. In Minneapolis, Minn., for example, the number of Oriental rug sellers in the city is down to less than 10 currently, after a high of 25 such locations in 1990.

Oriental rugs can get quite pricey while a machine-made rug can go for as little as 10% of what a traditional rug costs. Customer who normally would pay $5,000 for a rung can find themselves paying as little as $500 for a rug of the same size, if not quality. A tufted rug usually only lasts for no more than five years, but this does not seem to matter as consumers tastes change quite frequently, so they no longer need one that lasts a lifetime.

Kurosh Amrami, the owner/operator of Grand Oriental Rugs, based in Edina, Minn., has seen a consumer shift in the high-end rug market during recent years.

"Consumer tastes changed in the last five years," Amrami said. "Many of my rugs are traditional styles and colors."

Oriental rug dealers have a dubious reputation as well, which does not help their cause. There are some sellers in the industry who have been known to mark up the wholesale price of their rugs by as much as 500%, then “discount” the rugs. While called a discount, the cost still ends up being twice what the wholesale price is.

Rugnews.com Editor and Publisher Lissa Wyman said that “if more dealers put a reasonable price on the tag instead of marking it up, we'd be in a better position."

Many Oriental rug dealers have had to change how they do business. Some retailers, for example, have begun carrying the very same machine-made rugs that are ruining their business so as to complement their Oriental rug lines. They have begun to sell other products as well, such as accessories for the home.

Other floor covering sellers are reaping the benefits of falling Oriental rug sales. As consumers turn to floor coverings for their hardwood and laminate flooring, they seek out alternatives, such as nylon and wool carpets that are bonded on the edges and ordered to fit any size room, said Ken Nash, a wholesale carpet and flooring store owner based in Plymouth, Minn.

"People are creating their own custom-made rugs at a fraction of the cost of Orientals," Nash said. "Our business in that market has doubled in the past three years."

About Rug Studio:

Rug Studio (http://www.rugstudio.com/) is a family-owned online and brick-and-mortar rug store. They have been in business for more than 80 years, based in San Antonio, Texas. They offer a wide selection of floor coverings, along with outstanding service, and are able to ship most of their in-stock product within 24 hours from their 100,000-cubic foot warehouse. For more on rugs, online rugs, safavieh rugs, visit the rugstudio.com website.

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