Mena Carpet News No. 14

MENA Carpet News www.menacarpetnews.com

Volume 4 | Issue 14 | March 2016

INSIDE

Middle East and North Africa Carpet World

Sponsored by:

Green Step Asia Awards Program The only Environmental Awards Program for the flooring industry in ASIA-PACIFIC returns for the 3rd edition at DOMOTEX asia/CHINAFLOOR 2016

DOMOTEX Turkey: Leading business platform for the Middle East carpet-makers...............7

Jaipur Rugs renames as Jaipur Living ...........................2

Iranian Carpet Embargo - The End!...............................12

AL SORAYAI GROUP EXPECTS TO GROW 30 PERCENT ANNUALLY UNTIL 2020...................16

Dubai’s private sector faces shortterm challenges but long-term opportunities................................17

India is the biggest competitors of Iran in the American carpet market..................................18

First Edition of Arab Carpet & Flooring Expo Co-Located with Yarn Fiber Expo and the World Carpet Portrait Gallery

2015

1-4 October 2015 | ADNEC | Abu Dhabi | UAE POST EVENT REPORT

Second Edition of Arab Carpet & Flooring Expo.......................18

Manufacturing PA6 BCF specities more profitably.......21

NEXT ISSUE : DOMOTEX Asia/ China Floor 22-24 March 2016

D

www.kohanjournal.com

OMOTEX asia/CHINAFLOOR 2016 continues promoting environmental sustainability by organizing once again the Green Step Asia Awards in cooperation with Floor Covering Weekly.

In 2015, Green Step Asia Awards Program witnessed an increased number of participants and entries compared to the previous year. Nine green initiatives were officially awarded during an onsite ceremony held at DOMOTEX asia/CHINAFLOOR 2015 in the presence of some of the world’s most influential professionals in the flooring industry, media, show’s strategic partners and more.

Mr. John Wu, President & CEO of Novalis International and one of the winners of 2015 Green Step Asia Awards stated right after the award ceremony -“It is a great honor to be recognized for our sustainability efforts in the presence of our fellow colleagues from the flooring industry. The GreenStep Asia program will help drive the green cause forward, not only in Asian flooring industry, but also in the rest of the world. It is never too late for Asian flooring manufacturers to start setting internal goals for sustainability efforts. We can’t make the whole world green, but we can all help to make it greener”.

www.jordancarpet.com

www.khaterehrugs.com

The flooring industry is being transformed by consumers and industry demands for environmentally sustainable products. Long known for innovation and new product development, the Asian flooring manufacturing community has responded with the next generation of innovative and sustainable products. Green Step Asia Awards gives flooring exhibitors a chance to showcase their sustainable development at all levels.

The goal of this environmental Awards program is to support and promote those efforts and to give Asian suppliers the credit and recognition they deserve. In other words, it is a way to honor those companies

and individuals that embody the principles of environmental stewardship so important in today’s global flooring industry, while at the same time raising awareness on environmental issues throughout the flooring community.

The competition is open to any manufacturer in the world who has manufacturing facilities in Asia where they apply the principles of environmental sustainability. In 2016, it will feature three awards categories for the flooring industry: best green product, best green practice/process, and best green pinnacle. Submissions can be made until 31st January 2016.

See more at page 7 ...

Iran deploys 1st carpet shipment to US

H

ead of the Iranian National Carpet Center has announced that the first shipment of Iranian handwoven carpets has been exported to the US. Hamid Kargar referred to the licensing of Iranian carpet exports to America as a result of JCPOA implementation adding “Iranian handwoven carpets have retaken the route to old and traditional markets and the first export shipment of the product was delivered in Los Angles through the port of Hamburg.»

He further asserted that over the past few years, our competitors have taken the lead managing to gain a good share of US carpet market; “according to the US customs statistics, India has become number one exporter of carpet to the Unites States,”.

Kargar further emphasized the possible changes in tastes and needs of customers over the past years and called for important measures to provide a large and long term market for Iranian carpets including observing and analyzing needs of the market, clever advertising of the Persian Carpet brand as well as careful monitoring of rivals’ activities.

“We would not expect the American market to create a miracle or bring about a huge rise in export figures, rather we seek to achieve a reasonable growth in the exports of Persian carpets”.■

MENACarpetNews »»»

Fair Calendar

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________________________________________ Mar. 22 to Mar. 24 2016

Jaipur Rugs renames as Jaipur Living

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fter celebrating more than a decade of steady growth and expansion in key categories that include award winning rugs, Jaipur Rugs Inc. has been renamed as Jaipur Living Inc. “Debuting with the new name is a refreshed logo and brand identity, showcasing the iconic Jaipur brand through a new lens that is clean, bold and graceful,” a Jaipur Living press release said.

«We set out to really celebrate what makes us unique with this rebrand, elevating our current look while staying authentic to what has made Jaipur a name in the industry,» said Li Kurczewski, creative director, Jaipur Living.

«I think our loyalists will be quite excited by the new logo and overall look and feel of the brand and we›re just getting started,” he added.

“This is only a glimpse into so much more to come as we take our creative approach to new heights in everything from product design to the showroom experience,» Kurczewski stated.

Kurczewski is at the helm of a new, hand-picked creative, design and marketing team and collectively bringing many years of experience working with global brands.

As part of Jaipur’s continued growth, the company has also announced the purchase of 23 acres of land in North Atlanta, USA. “Plans for a new 350,000-square-foot facility are currently underway and expected to take place in two phases beginning in January 2017,” the company informed.

“The new facility will position Jaipur to better serve its broad customer base worldwide while sustaining and supporting the company’s steady expansion,” Jaipur Living too added.

Jaipur Living’s sister company, Jaipur Rugs Company Pvt. Ltd. (JRC), will continue to operate as usual, supplying the beautiful, hand-crafted rugs that have made Jaipur a global name. According to the company, over the past decade, the two companies have commonly shared the Jaipur Rugs name, while continuing to grow and evolve to accommodate the diverse and everchanging needs.

«We have been amazed and humbled by our rapid expansion in recent years, both in size and distribution channels we serve, as well as in the organic growth of our product lines,» said Asha Chaudhary, president, Jaipur Living. «There is so much momentum for the company, and at this stage in our evolution, the change underscores our vision for Jaipur as a true lifestyle brand,” Chaudhary also added.■

■ DOMOTEX ASIA/CHINAFLOOR

Shanghai New International Expo Center Pudong, Shanghai www.domotexasiachinafloor.com ________________________________________ April 3-5, 2016

■ THE RUG SHOW IN LA

L.A. Convention Center Los Angeles, CA www.therugshow.com ________________________________________ April 12 to April 16, 2016

■ SALONE DEL MOBILE

Milan Fairgrounds, Rho (Milan) Milan, Italy www.salonemilano.it/en-us ________________________________________ April 16 to April 20, 2016

■ INTERNATIONAL HOME FURNISHINGS MARKET

High Point, NC www.highpointmarket.org ________________________________________ May 10 to May 13, 2016

■ MAISON & OBJECT AMERICAS

Miami Beach Convention Center Miami, FL www.maison-objet.com ________________________________________ May 14 to May17, 2016

■ ICFF (INT’L CONTEMPORARY FURNITURE FAIR) Javits Center New York, NY www.icff.com ________________________________________ May 25 to May 28, 2016

■ DOMOTEX TURKEY

Middle East Exhibition (OFM) Gaziantep, Turkey www.domtextuky.com ________________________________________ May 28 to May 30, 2016

■ CANADIAN FURNITURE SHOW/SALON CANADIEN DU MEUBLES The International Centre Toronto, ON http://www.canadianfurnitureshow.com/en ________________________________________ June 22 to June 28, 2016

■ DALLAS TOTAL HOME AND GIFT MARKET Dallas Market Center Dallas, TX www.dallasmarketcenter.com ________________________________________ July 12 to July 19, 2016

■ ATLANTA INTERNATIONAL GIFT & HOME MARKET

AmericasMart Atlanta, GA www.americasmart.com Temporaries: July 14 to July 18 ________________________________________ July 13 to July 16, 2016

■ ATLANTA INTERNATIONAL AREA RUG MARKET AmericasMart

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Mena Carpet News, Ambassador of Carpet of Mena Region

Atlanta, GA www.americasmart.com Temporaries: Jan. 8 to Jan. 10 ________________________________________ July 31 to Aug. 2, 2016

■ LAS VEGAS MARKET

World Market Center Las Vegas, NV www.lasvegasmarket.com ________________________________________ Aug. 20 to Aug. 24, 2016

■ NY NOW

Jacob K. Javits Convention Center New York, NY www.nynow.com ________________________________________ Sept. 2 to Sept. 6, 2016

■ MAISON & OBJET

Paris Nord Villepinte Exhibition Centre Paris, FR www.maison-objet.com ________________________________________ Sept. 11 to Sept. 13, 2016

■ NEW YORK INTERNATIONAL CARPET SHOW

New York, NY www.nyics.com ________________________________________ Sept. 11 to Sept. 14, 2016

■ THE RUG SHOW AT JAVITS

Javits Center New York, NY www.therugshow.com ________________________________________ Sept. 19 to Sept. 22, 2016

■ NEW YORK HOME FASHIONS MARKET

295 Fifth Ave., 261 Fifth Ave., 7 West 34th St. and various other venues New York, NY www.homefashionproducts.com ________________________________________ Oct. 22 to Oct 26, 2016

■ INTERNATIONAL HOME FURNISHINGS MARKET

High Point, NC www.highpointmarket.org ________________________________________ Jan. 10 to Jan. 17, 2017

■ ATLANTA INTERNATIONAL GIFT & HOME MARKET AmericasMart Atlanta, GA www.americasmart.com Temporaries: Jan. 12 to Jan. 16 ________________________________________ Jan. 11 to Jan. 14, 2017

■ ATLANTA INTERNATIONAL AREA RUG MARKET The National Oriental Rug Show

AmericasMart Atlanta, GA www.americasmart.com Temporaries: Jan. 12 to Jan. 14 ________________________________________ Jan. 18 to Jan. 24, 2017

■ DALLAS TOTAL HOME AND GIFT MARKET Dallas Market Center Dallas, TX www.dallasmarketcenter.com

Middle East and North Africa Carpet News »»»

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March 2016][ 3

MENACarpetNews »»» The resurgence of the Persian carpet trade The centuries-old industry stands to benefit from the lifting of sanctions following the Iran nuclear deal.

By: Mohammad Ali Najib Local and International merchants from as far away as Japan, South Africa and the United States the exhibition in Tehran.

I

ran’s carpet industry is on the brink of a rebound.

US-led sanctions against Iran dealt a major blow to the international trade in Persian carpets.

Since 2009, exports shrank by as much as 33 percent, according to the Iranian state news agency. The decline battered the market, which provides a source of income for an estimated two million people.

As the Iran nuclear deal comes into effect, Western powers, including the United States, are preparing to lift trade sanctions against Tehran. A key industry that stands to benefit is the country’s carpet trade.

The resumption of the Iran talks has already boosted Iran’s handwoven carpet exports, which earned $330m for the country by the end of the Persian year in March. In the first four months of the current year, Iran sold another $60m worth of handmade carpets abroad.

Hamid Kargar, the director of the Iran National Carpet Center, told the Tehran Times that in the current year, Persian carpets have been exported to around 80 countries. About 45 percent of the exports went to Asia and another 43 percent to Europe.

Before the sanctions, about 25 percent of Persian carpets were sold to the US.

The skil and craft involved in the creation of these carpets has been passed down from generation over the centuries.

Iran’s tradition of carpet-weaving dates back hundreds of years, and one museum in Tehran is exclusively dedicated to the craft.

About 45 percent of those exports went to Asia and 43 percent to Europe.

The main materials used in Persian rugs are wool, silk and cotton.

More than an economic resource, Persian carpets are also a source of pride for Iranians.

The carpet-weaving industry dates back hundreds of years, and its cultural significance has survived the test of time. ■

Persian carpets have been exported to around 80 countries in this Persian calendar year. Persian carpets are renowned for their richness of colour, variety of artistic patterns and quality of designpreferred colors.

In General, The materials are manually dyed in the preferred colors.

An estimated two million Iranians are employed in the country’s carpet industry.the country’s carpet industry.preferred colors.

More Than 700 Iranian Carpet producers and exporters participated in the Iran handmade Carpet Exhibition at Tehran’s permanent International Fairground.

The first documented evidence of these carpets from Chinese texts dating back to the Sassanid Empirepreferred colors.

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MENACarpetNews »»»

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Iran exports $400m machinemade carpet in the year Deputy minister of industry, mines and trade said that the exports of machine-made carpets will hit $400 million in the year to March 20, 2016.

On the sidelines of inauguration of five industrial projects in Kermanshah, Mojtaba Khosrotaj put the value of machine-made carpet exports in the past nine months to December 21 at $300 million.

The figure for the nine months last year stood at $330 million, he said.

Noting that machine-made carpet exports are rivaling with those of hand-made carpet, the official said that local markets are nearly saturated and an export-oriented view should be taken towards machinemade carpet industry.

Khosrotaj said that the producing units are complaining about high interest rates for the bank loans, calling for reducing the interest rates under the new circumstances after removal of sanctions.

Using capacities of private sector in the advancement of national economy is very effective, he said, adding that financial resources of the sector will help flourish the industries.

Five industrial and production projects were inaugurated on Wednesday in Kermanshah as part of the programs to mark Islamic Revolution 1979 victory anniversary, paving the way for the employment of 100 people. ■

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Asian visitors to Domotex 2016 up 29%

Domotex 2016 closed its doors with 1,441 exhibitors from 59 countries and 45,000 trade visitors from more than 100 nations, which also includes a 29 per cent rise in Asian visitors over the previous show.

According to a press release from the organisers, Domotex delivered fresh momentum for the international floor coverings industry, serving as a powerful driver of sales, trends and innovations.

“Visitors from around the world found all the latest trends and innovations on display in 12 different exhibition halls, setting the stage for order-placing and fruitful dialogue with business associates,” they added.

Out of a total of some 27,500 visitors from abroad, around 50 per cent came from EU countries, with another 25 per cent coming from Asia and eight per cent from the Americas.

Paul De Cock, president of Unilin Flooring Division said, “Our stand attracted a steady stream of visitors, resulting in lively business and lots of purchase orders and we feel upbeat about the business year ahead.”

Dr. Ali Ipektchi of Ipek A. Ipektchi GmbH & Co. KG added, “As exhibitors of Persian carpets and rugs, we see Domotex as the most important international business event.”

“We took lots of orders and engaged in many promising talks with business partners and potential customers and at this edition, Persian carpets and area rugs enjoyed even greater prominence,” he stated.

“Exhibitors were delighted with the high level of decision-making authority among the show’s attendees, with more than 72 per cent of them being top managers who influence purchasing decisions,” the organisers informed.

The majority of visitors at this year’s Domotex were retail and wholesale buyers, while the fair also attracted architects, interior designers and contractors as well as skilled trade people.

Under the slogan ‘Tread on Me’, Domotex invited visitors to ‘walk all over’ the latest trends, including a wide range of natural-look rugs and carpets.

The Innovations@Domotex showcase put a big spotlight on highly innovative floor coverings and which proved highly popular among the show’s visitors, drawing special attention to 84 selected innovations.

“This made it easy for trade visitors to get a concise look at the sector’s hottest innovations, thus providing valuable orientation for the year ahead,” the organisers observed.

Other standout attractions included the Innovations@Domotex Dialogues spotlighting key industry topics by means of presentations and panel discussions by and with top international designers like Piero Lissoni.

The focus was on current design trends and advances for hotels, catering, offices, healthcare, shopping, retail and home interiors.

User-centric guided tours provided in-depth coverage of the topics addressed, and featured innovations provided architects, interior designers and planners with an overview of the varied range of floor coverings. ■

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Middle East and North Africa Carpet News »»»

►... from page 1

Some of the benefits offered to all participating companies include dedicated E-newsletters sent by Floor Covering Weekly Global to over 13,500 worldwide readers and by show organizer to over 200,000 show database contacts, publication on FCW and DOMOTEX asia/CHINAFLOOR websites and social media groups, publication in a dedicated GreenStep Asia show daily distributed for free during the show to all visitors, exhibitors and media partners, promotion at other major international flooring shows, etc.

The President of Malaysia Architects Association joins for the first time as jury member Ar. Mohd Zulhemlee An, President of the Malaysia Architects Association (Pertubuhan Akitek Malaysia-PAM) will be joining the authoritative jury composed by the leaders of some of the world’s most famous flooring associations and industry media that will judge and award the most remarkable green commitments in Asia. “I think Asian companies have become more aware regarding the importance of sustainable construction and protecting the environment. Joining the judging panel will enable me to be exposed to the best practices in sustainability related to floor finishes. At the same time I will be able to share and exchange views with the other judges regarding the protection of the environment, and how the construction industry can become more sustainable and contribute to its preservation.” stated Mr. Zulhemlee.

The votes for the entries come independently from each judge to Floor Covering Weekly and DOMOTEX asia/CHINAFLOOR organizers. The winners and honorable mentions for each category will be announced during an award ceremony that will take place on the first day at DOMOTEX asia/CHINAFLOOR, 22-24 of March 2016 in Shanghai, China. ■

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Promising outlook for DOMOTEX Turkey 2016

From 23 to 26 May 2016, DOMOTEX Turkey is being staged in Gaziantep, Turkey for the third consecutive season. All signs are pointing to a successful event ahead, and one which will be based on the considerable strengths of the previous show. “Even though the fair is still another three months away, nearly all available space has been booked”, said Martin Folkerts, Director of Global Fairs at Deutsche Messe in Hannover, Germany, adding: “DOMOTEX Turkey will again consolidate its position as the leading trade platform for carpet manufacturers in Turkey and the Middle East.” The trade fair is organized by a Deutsche Messe subsidiary, Hannover Fairs Turkey, in cooperation with the Gaziantep Chamber of Commerce (GTO), the Association of South Anatolian Carpet Exporters (GAIB) and the Gaziantep Chamber of Carpet Manufacturers (GHO).

International get-together for new business prospects The keynote displays of the trade fair will be machine-made and handmade carpets, textile and resilient floor coverings, parquet and laminate flooring, as well as machines and accessories. Approx. 200 companies will be showcasing their products and latest developments on an area of approx. 22,000 square meters. Turkish manufacturers will be joined by companies from Bangladesh, Belgium, China, France, Germany, India, Iran, Jordan, Saudi Arabia, Sri Lanka and Uzbekistan. “DOMOTEX Turkey offers exhibiting companies ideal conditions for establishing and consolidating business relations with partners in Turkey and the Middle East, and for opening up new markets for their products”, added Folkerts. “The event brings the right suppliers together with the right target buyers, thus boosting the volume of trade throughout the region.” Last year, a total of 8,734 trade visitors, mostly from Turkey and the Middle East, attended the event in Gaziantep.

The marketing DOMOTEX Turkey is the responsibility of Hannover Fairs Turkey Fuarcılık A.S., a subsidiary of Deutsche Messe, which uses its international network of representatives, targeted media channels and a special program for buyers to attract a large number of professionals from Turkey and the Middle East.

Thanks to collaboration between the tradeshow organizers and Turkish Airlines as the event’s official airline, exhibitors and visitors can book flights to Istanbul or Gaziantep with special discounts of up to 20 percent. ■ w w w. m e n a c a r p e t n e w s . c o m

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MENACarpetNews »»»

– (Hair et al., 1998).Normally those attributes and levels are used in conjoint analysis which cover the key characteristics considered in purchasing situation (Grunert, 1997).

Investigation of Customer Priorities for Machine Made Carpet Through Conjoint and Cluster Analysis Samira Rahimi

MSc in Industrial Engineering, Yazd University, Iran

Mohammad Saber Fallahnezhad

MSc in Industrial Engineering, Yazd University, Iran

Mohammad Saleh Owlia

Associate Professor, Department of Industrial Engineering, Yazd University, Iran

Mohammad Hossein Abooie

Assistant professor, Department of Industrial Engineering, Yazd University, Iran

Abstract The machine made carpet industry is one of the main and most famous industries in Iran and especially in the city of Yazd. However there is little information about customer preferences for different attributes of this product. In this article we tried to estimate the relative importance of the main attributes affecting customer desire for purchasing machine made carpet and the utility values for the different levels of each one by means of conjoint analysis. In addition to this, we created customer segments with similar preference structures using cluster analysis. Six attributes have been considered in this paper: design, color, number of colors, density, primary material and brand. Twenty seven profiles by combining different levels of these attributes using fractional factorial design approach have been created. These profiles were evaluated by 380 customers in the city of Yazd. Results have shown that design of carpet is the most important attribute for the choice of carpet. Color, primary material, brand, density and number of colors are the next priorities for customers respectively. Also cluster analysis identified five clusters of customers with similar preferences.

Key words: Conjoint analysis, Customer’s preferences, Segmentation, Machine made carpet, Yazd

I

ntroduction The customers of each organization, in each occupation are the most important invests of any organization in which the survival of any organization depends on their satisfaction and loyalty (Mansouri et al., 2012).

In other words, customers are a key factor in success of any organization and business, thus implementing and practicing the principles of customer’s satisfaction is so much essential in the success of organization. The most important key factor in achieving customer’s satisfaction and loyalty is to provide suited services and products for them. Providing appropriate products is only possible based on recognition of customer’s preferences, priorities and attitudes (Alibeik et al., 2005).

The Persian carpet is an essential part of Persian art and culture. Carpet-weaving is undoubtedly one of the most distinguished manifestations of Persian culture and art, and dates back to ancient Persia. Iran is also the world’s largest producer and exporter of carpets, producing three quarters of the world’s total output (Wikipedia, 2012). In recent decades although Persian handmade carpet still has high popularity in global markets, but in domestic market due to its cheaper price, machine made carpet is replaced with handmade one. Of course this replacement is not due to the lack of interest for handmade carpet, but the price difference between these two carpet types, and on the other hand, flexibility in size, color and design, have caused that Iranian customers were propelled to machine-made carpet (Pakzad, 2010). However, unfortunately much effort has not been done for identifying customer’s preferences with regards to machine-made carpet product (Daneshian et al., 2012). The research presented in this paper seeks to provide a general model of customer’s preferences and perceptions by using methodologies applied in the marketing.

When customers are willing to make a purchasing decision, including machine made carpet purchasing, they usually consider several factors. Thus a methodology of analysis like conjoint analysis that determines estimation for the importance of various attributes at the same time in the purchasing decision of the customers could be very useful (Moskowitz & Silcher, 2006).Conjoint analysis is an established validated method that has received considerable academic and industry attention for years as a major set of techniques for measuring buyers’ tradeoffs among multi attributed products and services.

It is a very powerful tool for obtaining information about the effect of different product attributes on purchasing desire of products (Green & Srinivasan, 1978).Conjoint analysis is unique among multivariate methods. In this method the researcher first constructs a set of hypothetical products by combining selected levels of each attribute, these combinations result in the design of the profile which is presented to the respondents. Customers will provide their evaluations based on their interest. Thus, the researcher is asking the respondent to perform a very realistic task – choosing among a set of products

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This technique has been used in the number of marketing researches to determine the relative importance of product attributes among potential buyers as well as the customer’s preferences (Ares & Deliza, 2010; Ares, Gimenez & Deliza, 2010; Behzadian, Aghdaie & Razavi, 2011; Chen, Hsu & Lin, 2010; Claret et al., 2011; Cox, Evans & Lease, 2011; Evans, 2008; Frank et al., 2001; Furnols et al., 2011; Haddad et al., 2007; Hailu, 2009; Hersleth et al. 2012; Hill, 2008; Krystallis & Ness, 2005; Lihra, Buehlmann & Graf, 2012; Mesias et al., 2009; Min et al., 2011; Nelson et al., 2005; Schnettler et al., 2009; Villalobos et al., 2010; Yun, 2007).

Usually customer’s attitudes, beliefs or purchase intention are not homogeneous. Consequently attributes of the products do not have the same importance for different customers(verbeke & viaene, 1999).

In that case it is needed to detect segments of customers with similar preferences, purchasing behaviors and other characteristics using backward approaches and therefore, the clustering approach is very appropriate for this purpose (Sahmer, Vigneau& Qannari, 2006).

The purpose of segmentation is to link customer’s characteristics with their preferences for product attributes (Hailu et al., 2009).Segmentation is important to choose the most appropriate marketing strategies thatbetter fit the interests of each segment (Naes, Kubberod & Sivertsen, 2001) especially if segments can be characterized in terms of demographic characteristics (Andrews & Currin, 2003).

The main objectives of the present study were to: 1) explore the importance weights of each attribute for stated purchasing customer’s preferences for machine made carpets and to investigate the attribute levels for which customers have positive or negative inference 2) identify different segments of customers based on their preferences and purchasing behaviors 3) investigate any significant difference between clusters with regards to demographic and behavioral variables.

The reminder of the paper is organized as follows.

The second section explains research methodology and is followed in the third section by the presentation and discussion of the empirical results; finally, in forth section concluding remarks are given.

Methodology Selection of attributes (factors), levels and profiles: conjoint analysis design The first step in the conjoint experiments concerns the identification of appropriate attributes and, subsequently, the design of feasible attribute levels (Hair et al., 1998). For this purpose we first investigated a list of attributes by reviewing of books, sites and etc, and then these attributes were presented to a panel of carpet experts, who choose the final attributes among them.

They also determined the appropriate levels for each attribute. The selected attributes were design, color, number of colors used, density, primary material and brand. Regarding the design, four different levels were chosen: Lachak toranj, Afshan, Kheshti, Derakhti.

These are the main and most famous designs in

Iranian machine made carpets. Concerning the attribute of color, the colors of crimson, midnight blue, cream and walnut that are the most common ones in producing machine made carpets in Yazd city, were the four levels considered. With respect to brand attribute, brands of’Bastan’, ‘Setare kavir’, ‘Kabir’ and ‘Sanaat’ were selected. Also three levels of Low, Medium and High were considered for density attribute. Concerning the attribute of primary material, Wool, Acrylic, Polyester and BCF were the four levels selected and finally 5, 8 and 10 colors were three levels selected for the number of colors attribute. Table (1) shows these different attributes and levels selected.

Once the attributes and their levels were selected, the profiles (combinations of different levels of the attributes) that would be presented to the customers in survey were created. Since fullfactorial design was not appropriate in the present study due to the large number of possible different combinations (4×4×3×4×4×3=2304),consequently, and in order to reduce the number of product profiles to be evaluated by participants, a fractional factorial design was used to effectively test the effect of attributes on buyer’s preferences, missing the least of information (Halbrendt,Wirth, & Vaughn, 1991; Harrison, Ozayan& Meyers, 1998).A fractional factorial design is the most common method used for defining a subset of profiles for evaluation (Hair et al., 1998).

It designs a sample of possible profiles, which the number of profiles depending on the type of composition rule assumed to be used by respondent.

The composition rule describes how the researcher postulates that the respondent combines the utilities of each attribute to obtain overall worth or utility of product profiles. The most common and basic composition rule is an additive model. It assumes the respondent simply adds the values for each attribute (i.e. the utilities of the levels) to get the total value for a profile. It means that in this composition rule, only main effects of the selected attributes are considered and interactions between them are assumed negligible (Hair et al., 1998).

and more accurate evaluation of the profiles by respondents, these 27 carpets were designed according to their levels on three attributes of design, color and number of colors. Along with picture of each carpet, Middle East and North Africa Carpet News »»» descriptions of this (i.e. about color, number of colors, design, primary material, density and brand of them) were presented. Also in addition to these, price of each carpet (for 1 m2 and 12 m2) was stated too.

the product. Another method Table 1: Attributes and levels selected for the conjoint analysis is ranking order method where Table 1: Attributes and levels selected for the conjoint analysis some disadvantages of using Attributes Attribute levels this method include the inability of respondents to communicate Design Afshan; Lachaktoranj; Kheshti; Derakhti indifferences between profiles Color Midnight blue; Crimson; Cream; Walnut and that how much one alterNumber of colors used 5 colors; 8 colors; 10 colors native is preferred over another Primary material Wool; Acrylic; Polyester; BCF (Sayadi, Gonzalez & CalaDensity1 Low; Medium; High trava, 2005), together with the Brand SetareKavir; Bastan; Kabir; Sanaat increasing difficulty for the customers to handle the ranking procedure specially when the number of product profiles is large, like this study, we Statistical analysis 1 Density: 'Low' includes ''Between 1300 until 1600'' for carpets with Polyester material ''Lower than 1000'' Customer’s ratings were analyzed by theand TRANSREG proconcluded to the use of rating method in present for carpets with otherstudy. defined materials in this study; 'Medium' includes ''Between 1600 until 1900'' for carpets cedure of SAS (SAS, 2008).

Rather than aggregating all with Polyester material and ''Between 1000 until 1300'' for carpets with other defined materials in this study and participants and obtaining average preference estimates 'High' includes ''Upper than 1900'' for carpets with Polyester material and ''Upper than 1300'' for carpets with Also note that the utility model developed with rating other defined materials in this study. method provides a more accurate view of the prefer- or part worth utilities, this program also generated part ences (Sayadi, Gonzalez& Calatrava, 2005).Customers worth for each participant. Note that part worths are relawere alsoasked to provide demographic and behavio- tive measures and their summation is zero for each attribral information. Demographic information included cus- ute. Part worth estimates are expressed in a similar scale. tomer’s age, gender, amount of monthly family income This allows that importance scores for individual respondents can be computed by calculating the ratio of the utility and level of education.

In this study we used this model of composition rule.

The quality of the design is reflected by being orthogonal and balance. A design is orthogonal if all effects can be estimated independently of all of the other effects (excluding the intercept) and a design is balanced when each level occurs equally often within each factor, which means the intercept is orthogonal to each effect (Kuhfeld, 1997).In the present study we created balance and near orthogonal design (D-efficiency of our design was 96.3492) with 24 profiles using the OPTEX Procedure of the SAS (SAS, 2008). We have also used three profiles, in addition to those used as validation or holdout profiles to determine internal validity of our model. Parameters from the estimated conjointmodel (using 24 profiles) were used to predict preferences for the holdout set of profiles and then they were compared with actual responses by calculating correlation. For easier and more accurate evaluation of the profiles by respondents, these 27 carpets were designed according to their levels on three attributes of design, color and number of colors. Along with picture of each carpet, descriptions of this (i.e. about color, number of colors, design, primary material, density and brand of them) were presented. Also in addition to these, price of each carpet (for 1 m2 and 12 m2) was stated too.

Participants and data collection In this study, that was conducted in the city of Yazd (one of the central cities of Iran), a sample of 380 customers aged between 18 and 75years old were gathered between September and November 2012.

Participants were selected randomly among those who had come to carpet shops for buying. For the evaluation of the purchasing preferences, each customer received 27profiles, which were generated, in a random order. Participants were asked to carefully view picture of carpets and read their descriptions, and rate each of them from 1 to 9, according to their purchasing preferences, where 1 means that the respondent definitely would not buy the product and 9 means that the respondent definitely would buy w w w. m e n a c a r p e t n e w s . c o m

March 2016][ 9

MENACarpetNews »»» S. Rahimi, M. S. Fallahnezhad, M. S. Owlia and M. H. Abooie

90

Table 2: Aggregate results of Conjoint Analysis for the overall sample: Table 2: Aggregate results of Conjoint Analysis for the overall sample: relative importance of attributes and part worth per level and attribute relative importance of attributes and part worth per level and attribute

Attribute Design

Color

Number of colors used

Primary material

Density

Brand

Level Afshan Lachaktoranj Kheshti Derakhti Midnight blue Crimson Cream Walnut 5 Colors 8 Colors 10 Colors Wool Acrylic Polyester BCF Low Medium High Setare kavir Bastan Kabir Sanaat

Part worth 0.410 0.467 -0.344 -0.533 -0.297 -0.130 0.343 0.084 -0.128 -0.024 0.151 0.147 0.067 -0.038 -0.176 -0.084 -.104 0.189 -0.018 -0.110 0.062 0.067

Relative importance (%) 29.485

16.991

10.818

By omitting outliers, 332 respondents were remained. The calculations of clustering these respondents were performed by using the Cluster unit of the SPSS 16 software and the Ward and k-means clustering procedures.

10.475

14.499

customers into homogeneous preference groups. Before starting clustering, outliers should be identified (Hair et al., 1998). In order to remove and outliers, we first calculated Mean (µ) and Std. Deviation (σ) for Results discussion Conjoint analysis each variable of clustering and then values of each variable that were more The estimated using ordinary least squares analysis, the thanmodel µ+3σ was or less than µ-3σhave been considered asregression outliers and omitted. most common methodology (Wittink & Cattin, 1989).

The estimated model estabBy omitting outliers, 332 respondents were remained. The calculations of lishes the relative importance of the attributes, as well as the part worth for each clustering these respondents were performed by using the Cluster unit of level of the attributes. One of the main results of the model is the estimation of a the SPSS 16(formed software andcombination the Ward and clustering procedures. utility function by the of thek-means part worths for the different levels) The inputs are used in analysis were the coefficients each for each of thethat respondents.

Thecluster accuracy of the estimation was tested byof calculatrespondent's function.

Webetween first used Wardratings procedure ing the Pearsonutility Correlation Coefficient the original given byfor the respondents and those determined by the model. The high value of this coefficient (0.874 for holdout profiles and 0.985 for all of profiles) indicates that the model provides prediction customer’s preferences.

2 shows the aggregate 92 good S. Rahimi, M. of S.the Fallahnezhad, M. S. OwliaTable and M. H. Abooie results for the whole sample.

and third to 5 colors. In cluster 3, carpet with number of 8 colors is the A positive sign in the value of a level’s part worth indicates that, for this survey, the least preferred clusters 2,3 adds and 5,onlyone (i.e.to10 presence of that one. level In of the attribute that amountlevel of utility thecolors) producthas (for positive and other two levels have value negative Clusters 4 greater and 5 two levelsutility with positive signs, that of greater is theutility. one that provides utility). Ahigh negative sign,than on the hand,medium implies that presence of that prefer density theother others, andthelow densities arelevel nextof the attribute in the product lessens its utility. preferences, while clusters 1, 2 and 3 prefer high density than low density.

With regards to clusters 1 and 4, only high density has positive utility.

Customers considered design of the carpet as the most important characteristic Clusters 5 assigned highest utility acrylic and cluster (29.485%1ofand importance), thethe ‘Lachak toranj’ onetobeing the material most preferred design 4(utility to wool In cluster 3, BCFdesign material high positive utility. value material. of 0.467). The least preferred was has the ‘Derakhti’ one (utility value of -0.533).

The2,second importanthas factor was the color but (17.732% of importance), Also in cluster BCF material highest utility after that and with and the most and in least preferred colorsis of cream Clusters and midnight small difference utility value,levels woolwere material placed.

1 andblue 5 respectively (utility values of 0.343 and -0.297). Primary material was the third imamong levels of brand factor gave highest utility to 'Bastan', cluster 2 to portant factor (16.991% of importance), and the most preferred level was the wool 'Sanaat', cluster 3 to 'Kabir' and finally cluster 4 to 'Setare kavir'.

Table 3: Descriptions of clusters and general sample by socio-demographic Table 3: Descriptions of clusters and general sample by socio-demographic characteristics together with level of significance obtained by Chi-Square test characteristics together with level of significance obtained by Chi-Square test

Gender

Man Woman 30 years

Age

31-49 years 50 years High school and Lower

Level of studies

Associate's and Bachelor's degrees Master's and Doctoral degrees 6.000.000Rials1

Monthly family income level

Upper than 6.000.000 until 10.200.000 Rials Upper than 10.200.000 until 10.800.000 Rials 10.800.000 Rials

The maximum utility, obtained from the combination of the levels with the greatest part worths for each attribute, would give the ideal product. Therefore the ideal product is as follows: carpet with design of ‘Lachak toranj’, color of cream, 10 colors, material of wool, high density and brand of ‘Sanaat’.

Segmentation Having determined the preferences from the utilities estimated in the Conjoint Analysis, a Cluster Analysis was then applied to classify the customers into homogeneous preference groups. Before starting clustering, outliers should be identified (Hair et al., 1998). In order to remove outliers, we first calculated Mean (µ) and Std. Deviation (σ) for each variable of clustering and then values of each variable that were more than µ+3σor less than µ-3σhave been considered as outliers and omitted.

17.732

range for the particular attribute to the sum of the utility ranges of all attributes. In Segmentation the Having next step, cluster analysis of the part worth for each attribute determined the preferences from estimates the utilities estimated in level the that were calculated in the past step (conjoint analysis) was applied to identify disConjoint Analysis, a Cluster Analysis was then applied to classify the tinct clusters or sample segments.

Demographic characteristics

one (utility value of 0.147). Brand, density and number of colors were in the next ranks respectively. Also brand of ‘Sanaat’, high density and 10 colors were the most preferred levels of these factors respectively.

1 71 43.6% 83 49.1% 65 58.6% 79 46.2% 10 20% 54 43.9% 73 45.6% 27 55.1%

2 28 17.2% 18 10.7% 19 17.1% 20 11.7% 7 14% 14 11.4% 23 14.4% 9 18.4%

Clusters 3 13 8% 18 10.7% 7 6.3% 17 9.9% 7 14% 14 11.4% 14 8.8% 3 6.1%

4 40 24.5% 31 18.3% 10 9% 39 22.8% 22 44% 31 25.2% 36 22.5% 4 8.2%

5 11 6.7% 19 11.2% 10 9% 16 9.4% 4 8% 10 8.1% 14 8.8% 6 12.2%

163 100% 169 100% 111 100% 171 100% 50 100% 123 100% 160 100% 49 100%

23 38.3% 90 53.6% 31 44.9% 10 28.6%

9 15% 31 18.5% 4 5.8% 2 5.7%

21 35% 8 4.8% 1 1.4% 1 2.9%

3 5% 19 11.3% 31 44.9% 18 51.4%

4 6.7% 20 11.9% 2 2.9% 4 11.4%

60 100% 168 100% 69 100% 35 100%

Total

Significancea

The inputs that are used in cluster analysis were the coefficients of each respondent’s utility function. We first used Ward procedure for determining number of clusters. Results showed that 2, 3 and 5 clusters were appropriate. Then k-means procedure was used for k=2, 3 and 5. These cluster solutions obtained from each k were evaluated through Davies Bouldin (DB) Index.

where ai and aj are the average within cluster distance of cluster i and cluster j and the denominator ‘d’ is the distance between centroids ci and cj . Minimum value of DB indicates optimal number of clusters. The values of this index for 2,3 and 5- cluster solutions are equal to 4.274, 4.756 and 3.735 respectively.

Since the 5-cluster solution has the lowest value of DB Index, this solution was chosen. Table 3 lists detailed socio-demographic characteristics of the clusters and of the overall sample. It also shows the level of significance obtained in a Chi-Square test carried out for five clusters.As shown in this table, there were significant differences among these five clusters according to age and income characteristics. According to this table, majority of young

Investigation of Customer Priorities for Machine Made … and part worths per level and attribute

Attributes and Levels

Design

Color

2(46 ind.)

Lachaktoranj

.1473

2.3902

.4491

.4657

-.5534

Afshan

1.2902

.8704

-1.2401

-.1532

-.7040

Kheshti

-.3205

-1.8305

.7240

.1743

-.8933

Derakhti

-1.1170

-1.4301

.0671

-.4869

2.1507

30.386

42.680

25.913

22.528

32.280

Crimson

-.3245

.2556

-.4879

.3742

-.4145

Cream

.5670

.3428

.5491

-.1496

.4878

Midnight blue

-.4804

-.2085

.0151

-.3633

.0927

Walnut

.2380

-.3898

-.0763

.1387

-.1660

19.018

16.208

16.898

17.192

18.219

Relative importance (%) Number of colors used

Density

-.2036

-.0077

-.1158

-.3661

.0381

-.1259

-.0128

.0197

-.0778

10 Colors

.0628

.3295

.0205

.0961

.4439

9.934

9.656

9.634

11.289

11.925

Low

-.0736

.1001

.1101

-.2356

-.1376

Medium

-.1103

-.2084

-.2442

-.1002

.0487

.1839

.1084

.1342

.3358

.0889

10.753

8.101

13.150

11.775

9.609

.0340

.1320

-.5207

.8125

-.0217

Acrylic

.2171

-.0304

-.0951

-.1315

.1926

Polyester

-.0254

-.2563

.0097

-.0078

.0511

Wool

n.s

BCF Relative importance (%)

**

w w w. m e n a c a r p e t n e w s . c o m

Brand

5(30 ind.)

-.1009

Relative importance (%)

Primary material

4(71 ind.)

8 Colors

High **

3(31 ind.)

5 Colors

Relative importance (%)

n.s

Clusters 1(154 ind.)

Relative importance (%)

1. a Differences significant at: **p<0.001; n.s: non-significant

][ March 2016

93

Table 4: Results of Conjoint Analysis by cluster: relative importance of attributes andAnalysis part worths per level and attribute Table 4: Results of Conjoint by cluster: relative importance of attributes

-.2257

.1547

.6062

-.6732

-.2220

15.936

12.326

18.556

20.478

13.292

Bastan

.1219

-.3491

-.0724

-.4422

.3108

Setarekavir

-.2252

-.0697

-.2380

.3495

-.2766

Kabir

.0994

.1780

.1603

-.1040

-.1327

Sanaat

.0039

.2408

.1501

.1967

.0985

13.972

11.030

15.894

16.738

14.676

Relative importance (%)

Middle East and North Africa Carpet News »»»

customers ( ≤30 years) are in cluster 1 (58.6%).

Middle-aged customers (31-49 years) are also mostly in cluster 1 (46.2%) and then in cluster 4 (22.8%). While majority of older customers (≥50 years) are in cluster 4.On the other hand, most of the population of the cluster 3 are customers with low income level, while cluster 4 is mainly made up by customers with high income level.

INNOVATION

FOR GLOBAL GROWTH

The relative importance of factors and part worths of their levels with the size of each cluster are presented in Table 4.Customers from cluster 1 (n=154) is the largest group, including 46.38% of the respondents. This cluster, among design levels gave the highest utility to the ‘Afshan’, while clusters 3,4 and 5 assigned the negative utility to this level. In cluster 3, ‘Afshan’ is the least preferred level. In cluster 2, ‘Lachak toranj’ is the most preferred level (utility value of 2.3902).Customers in cluster 3 assigns the highest utility to the ‘Kheshti’ and cluster 5 to the ‘Derakhti’. In cluster 4 similar to cluster 2, the highest preferred level is ‘Lachak toranj’, but in this clusters ‘Kheshti’ is the second one.

While in cluster 2, ‘Afshan’ is the second preferred level. In all of clusters rather than cluster 4 which in that one, color of crimson is the most preferred color, color of cream has the highest utility. Color of crimson in clusters 3 and 5 is the least preferred color, while in clusters 1 and 4 color of midnight blue has the lowest utility. In cluster 2, the least preferred color is walnut. Clusters 1, 2, 4 and 5 assigned the highest utility to carpet with 10 colors, second to 8 colors and third to 5 colors. In cluster 3, carpet with number of 8 colors is the least preferred one. In clusters 2,3 and 5,onlyone level (i.e.

10 colors) has positive utility and other two levels have negative utility. Clusters 4 and 5 prefer high density than the others, medium and low densities are next preferences, while clusters 1, 2 and 3 prefer high density than low density. With regards to clusters 1 and 4, only high density has positive utility. Clusters 1 and 5 assigned the highest utility to acrylic material and cluster 4 to wool material.

In cluster 3, BCF material has high positive utility.

Also in cluster 2, BCF material has highest utility but after that and with small difference in utility value, wool material is placed. Clusters 1 and 5 among levels of brand factor gave highest utility to ‘Bastan’, cluster 2 to ‘Sanaat’, cluster 3 to ‘Kabir’ and finally cluster 4 to ‘Setare kavir’.

Conclusion While the use of machine made carpet has grown dramatically in recent years, research that explores how customers shape their attitudes has been lacking. The research presented in this paper seeks to provide a richer view of customer’s preferences and perceptions by applying methodologies from the marketing domain. First, conjoint analysis, which has been widely used in the marketing literature, was used to determine the most important attributes in shaping the preferences of the customers for purchasing machine made carpet. Second, cluster analysis was performed on the part worth values derived from the conjoint analysis to extract salient and homogeneous customer segments with similar preferences.

T

here can be little doubt that the contemporary business environment is one where countries, companies and institutions face significant socio-economic challenges in relation to changing demographic societal composition, competition from emerging and emergent economies, and the inexorable growth and sophistication of science and technology. Therefore, innovation is and will continue to be the principle vehicle for economic activity and growth.

solution(s) back to the two members of the Bonar Yarns team. An exercise which proved extremely successful This year was also the first time that non-Abertay students were involved – with twenty postgraduate students from the University of St Andrews’ masters course in human resource management joining a few of the sessions at IGG.

Charlie Malone, event leader from Abertay University’s Dundee Business School, said: “Innovation for Global Growth has developed into a major annual event at Dundee Business School and this year we’ve opened it up to more students than ever before, giving undergraduates the chance to pitch ideas to major global companies. We’re always looking at ways of making our teaching and learning practical and business-focused. Facing the pressure of a commercial environment in a safe way is a very exciting experience for our students. For the companies themselves, it lets them collect fresh new ideas for challenges they’re currently facing as well as showcasing our most promising graduates who will be the business leaders of the At the end of 2015 Bonar Yarns were presented with the future.” opportunity to be involved with the IGG event at Abertay university, to help mentor students and provide them with a Alongside Bonar Yarns, a few of the other organisations live business experience. setting challenges for the students this year included: Last week two members of the Bonar Yarns team attended The Sea Fish Company, Heineken, AJ Barr’s, BT and the IGG event to represent Bonar Yarns, and present an Bank of Scotland. overview of the company (including industry overview, prod- It was a great event which further emphasised Bonar uct range, target market and ongoing market information) to Yarns ongoing partnership with the university – someprovide further background and insight to aid the students thing which we are extremely proud of and look forward solution presentations. to being involved with many more events in the future.

Abertay University’s Dundee Business School, alongside its partners in industry and commerce, share the view that there needs to be greater emphasis on building and maintaining links between key economic and university sectors for the advancement of economic growth. The Innovation for Global Growth (IGG) project is an ongoing initiative aimed at fostering a community of innovators for the future of business.

The event provides students with the opportunity to develop solutions to real business challenges set by organisations from a range of business sectors including food-and-drink, banking, textiles, manufacturing and telecoms.

Working in small teams, the students applied their studies to Greatness is in the Detail various industry and business questions/discussions which are currently of interest to Bonar Yarns, before pitching their

Segmentation according to preferences can be a useful tool to develop different marketing strategies for each segment of the market. Results of conjoint analysis showed that the attribute which most affect on choice of the purchasing carpet is design (29.485% of importance) and the ‘Lachak toranj’ one is the most preferred design.

Also cluster analysis identified 5 distinct segments of customers. Chi-Square test demonstrated that there were significant differences between these clusters according to age and income characteristics.■

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March 2016][ 11

MENACarpetNews »»»

Iranian Carpet Embargo - The End! By: Michael Christie

I

t gives me great joy to announce the United States’ embargo and ban on the importation of Iranian produced rugs and carpets has been lifted. In accordance with the Joint Comprehensive Plan of Action (JCPOA) the International Atomic Energy Agency (IAEA) on 16 January 2016 certified Iran had fulfilled its initial obligations under the JCPOA and thus ‘Implementation Day’ came to pass and with it the end of the embargo.

Throughout my lifetime the embargo has been enacted and rescinded on numerous occasions in various efforts to force The Islamic Republic of Iran into compliance with geopolitical ideologies we shall not again discuss; politics, religion, and all that. (These were previously discussed in: ‘Lift Embargo: Iranian Rug Trade to Resume’) Each attempt has to my understanding seemed only to moderately punish the people of Iran - the very people who make the lovely rugs and carpets so often revered, while fully punishing United States’ consumers (How dare they, the customer is never wrong!) Let us hope this instance may be far more enduring than in the past.

As Iranian made rugs and carpets may once again be legally imported into the United States and as Implementation Day fortuitously coincided with DOMOTEX what better way to celebrate such occasion than a summary overview of some of the stunning carpets being made in Iran.

Where else could one possibly start but with none other than venerable Iranian carpet house Zollanvari. As the company that all but introduced quality Gabbeh carpets to the west en masse and had sizeable presence and business importing said carpets into the United States prior to the embargo, it would seem no-one would be more qualified to speak on the subject. ‘The lifting of the embargo is a real relief and I’m very happy that finally once again the people of the United States can enjoy the handicraft of the nomadic tribes of Iran...’ says Reza Zollanvari when asked about the end.

Positivity aside there was a small degree of confusion during DOMOTEX and upon hearing news of Implementation Day. ‘When would carpets be allowed to enter the United States?’ was the overriding theme as buyers eager to hedge a competitive advantage over

those not at the premier global rug and carpet forum, sought to buy immediately. During dinner the night of Implementation Day anecdotal advice from David Young of COVER and myself tended toward: ‘Buy now sort the details later as it won’t be long.’ Whereas with the release of further documentation from both the Untied States’ Department of State and the Department of the Treasury the following day, ‘those who are educated and literate’ - to anonymously paraphrase an astute colleague - knew they could indeed immediately buy, buy, buy, (and import)!

Wanting to be on sure legal footing is reasonably sound advice, and for those seeking to know more you can be directed to visit the Oriental Rug Importers Association’s website and read both their announcement and the letter from their legal council which distills everything aforementioned and already publicly available.

But to summarize, it says: 1) Yes you can import. 2) Yes banks can send payments but there are a few hurdles.

3) It’s still illegal to do business with people deemed unsavory. 4) Wait for the Treasury Department to issue the ‘General License’. The ‘General License’ was issued on 21 January 2016 (Who says the United States’ Government is inefficient?) and for those barely home from DOMOTEX themselves, the ones who were savvy saw the imminent reward of their foresight.

As we can once again ‘enjoy the handicraft of the nomadic tribes of Iran...’ as well as any carpets produced in a manufactory, we must also examine what it means to United States’ rug dealers and to the design trade.

‘To the Trade’ is a new prototype feature on The Ruggist that will provide annotations explaining the world of rugs to consumers and designers alike. In addition, The Ruggist will also begin featuring ‘To the Trade Only’ articles written specifically for designers in order to foster broader understanding of what we consider the ‘proper’ use of handmade carpets.

WernerWeber is a renowned rug dealer now in his sixth decade of trading rugs and carpets. Long an aficionado of fine quality carpets (both aesthetically and technically) he is optimistically looking at the United States this autumn and ‘will exhibit during the fall in New York when the two exhibitions are held at the same time. The

‘Multiple Trees Gabbeh’ from the ‘Flora and Fauna’ Collection by Zollanvari.

Image courtesy of Zollanvari.

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Alireza Ghaderi

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‘Four Seasons’ Gabbeh from the ‘Flora and Fauna’ Collection by Zollanvari.

Image courtesy of Zollanvari.

12 ][ March 2016

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Shows being at the same time and separated by only a few blocks makes it really attractive.’ he said when asked about his future plans for the United States.

Faradj & Homayoun Farhadian has a very strong presence and does well in the European market, this according Homayoun Farhadian, Partner at the firm.

They also do appreciable business in Japan - a market known for its extreme affinity toward quality - operating two (2) showrooms, one in Tokyo and the other in Kobe (near Osaka) in cooperation with ‘Meiwa’.

Homayoun speaks a bit philosophically about the importance of nomadic and tribal rugs in the contemporary marketplace: ‘I believe that the United States’ market needs Persian rugs. There are many copies from Pakistan and India but those are really like copies!

You can order 1,000 pieces and 1,000 pieces look the same!! Our rugs are one-of-a-kind which makes it more interesting...’

Mr. Farhadian speaks to one of the principal ideologies that has historically (though not entirely) differentiated carpet production in Iran from that produced elsewhere: uniqueness. So called Nomadic production in Iran makes all but impossible the ability to reproduce a design with one-hundred percent (100%) accuracy. It’s not that it cannot be done, it’s that it simply isn’t and therein lies part of the charm, character, uniqueness, and je ne sais quoi of Persian, that is, Iranian carpets.

As a treasured characteristic, individuality defines much of Iranian carpet production and, like those carpets presented thus far, is embodied in those from Edelgrund.

From their own marketing materials: ‘As a GermanPersian brand, our company’s goal is more than just connecting two continents, but also various influences and cultures. Edelgrund unifies German reliability with creative Persian craftsmanship inspired by a new generation with fresh ideas and modern design.’

The deft understanding of old weaving techniques lead Edelgrund to developed the ‘Massal’ Collection of special flatweave, which in addition to combining different weaving techniques utilizes different colour yarns in the

‘Lori Nowbaft’ piece. Image courtesy of Faradj & Homayoun Farhadian

‘Loribaft Atash’ piece. Image courtesy of Faradj & Homayoun Farhadian

warp and weft yielding subtle colour effects best experienced from a variety of angles. As a consequence the specialness of the carpet is not derived from a bold design or pattern but rather from a sophisticated understanding of colour, presence, and the ability of a carpet to age well and develop a stunning ever evolving patina. Edelgrund, clearly eager to be in the United States’ market, will be exhibiting at Highpoint Market 16-20 April 2016.

sourcing the best materials (including Iranian wool) and labour without regard to strict geographic distinctions, but that is not a discussion for today. What is however is the future of Iranian rug production.

So much of Iranian carpet production focuses on the storied history of the region and its place of honour as both the arguable progenitor of carpet weaving and as the namesake region of the now colloquial ‘Persian’ carpet. But what about the future? For that The Ruggist would have formerly gladly referred you to the carpets of Sahar which up until the onset of this last embargo were woven in Iran and were a true feat of programmed rug production. Perhaps Sahar still best embodies what the future of rugs and carpets may be like; globally

Just as western rug designers have been inspired by countless disparate ethnographic textiles in their creation of modern masterpieces, so too can those very cultures be inspired by the west in their creation of what Hossein Rezvani calls ‘21st Century Persian Carpets.’

Take for example the above pictured ‘Frenchie Turquoise’ from Mr. Rezvani. This carpet exemplifies modern carpet design and production (including custom) and embodies the cyclical (not cynical!) and inspirational nature of design. ‘Frenchie’ utilizes a typical French origin Aubusson design - early versions of which were inspired by Turkish Oushaks, and gives it a bold two (2) colour graphic treatment utilizing the faux faded, looks like a bad photocopy from an ancient encyclopedia aesthetic that is exceptionally hot in carpets at the moment.

From Turkey to France to Iran and now to consumers in the United States. ‘I get a lot of inquiries from Interior Designers in New York and Los Angeles more or less weekly, so I’m very happy that the embargo has been lifted. The United States is a major market for persian carpets and now being able to bring in my contemporary persian carpets, I think is a win/win situation.’ says Hossein Rezvani when asked about the embargo who then continued: ‘The feedback that I get from United States retailers so far is that they where waiting for high quality contemporary carpets, as they see it’s not only the design anymore, [but] also the quality as a major key to sales. It is the combination of modern design with highest quality which will succeed longterm.’

The rorschachian treatment of a traditional Persian Tabriz design is wonderfully abstract all but begging the viewer to answer the question: ‘What do you see?’ Made using the best materials (Kork Wool) knotted at an unnecessarily fine quality of 1,000,000 knots per square meter (approximately 640 per square inch) everything about this carpet conveys luxury and decadence.

Kelim from Mazandaran in the North of Iran. Image courtesy of Werner Weber.

Kelim from the ‘Massal Collection’ of Edelgrund. Image courtesy of Edelgrund

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The ability of United States’ rug and carpet dealers, wholesalers, consumers, and the like to once again import carpets from Iran is a great relief not only to those who produce them, but to those who would see handwork continue well into the future. As a developed nation Iran is at an advantage in some ways over that of other rug producing countries. The Government of Iran has a program allowing for what amounts to an ‘old age pension’ or ‘social security’ for weavers, an environmental protection scheme that sees waste water from dye facilities treated, and while no system is perfect, it is

March 2016][ 13

MENACarpetNews »»» reasonably safe to assume that an Iranian made carpet - though perhaps pricier - is made under fair and equitable conditions. ‘Our main activity in Iran is more often one of confirming and verifying compliance [to the Label STEP standard] within the supply chain, as opposed to finding non-compliance’ according to Reto Aschwanden of Label STEP, a non-profit working to bring fair trade principals to the handmade carpet industry and which has been working in Iran for at least the last ten years.

He continues, ‘Of course I am specifically talking about those producers who are members of Label STEP, but overall working conditions are good and wages are very high. It [Iran] is a developed country and so our focus is a little different than in other countries. we assist weavers in enrolling in the Government pension scheme, providing forms and spreading word of the benefits.’

Kelim from the ‘Massal Collection’ of Edelgrund. Image courtesy of Edelgrund

‘Tabriz Lilac’ from Hossein Resvani. Image courtesy of Hossein Rezvani.

Aquafil at DOMOTEX 2016 HANNOVER with ECONYL® StayClean yarn

section and a state-of-the-art finishing technology, this solution dyed Nylon 6 fiber assures maximum cleanability and wear and tear resistance.

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his year’s booth at Domotex 2016 well reflects Aquafil’s strategy based on innovations for the high-end residential sector, weaving sector and new reprocessing technologies.

Always committed to developing new products while taking real measures to protect the environment, Aquafil has dedicated a significant part of its Domotex booth to the launch of the ECONYL® StayClean yarn.

It is an innovative sustainable fiber with intrinsic stainresistant properties, made from 100% regenerated nylon.

Produced with a modified polymer, a special cross

ECONYL ® StayClean is available in two versions, HOME and OFFICE. Another big focus of this year’s stand is the weaving sector, where Aquafil has identified a significant potential and aims to expand its market share. Visitors at Domotex had the opportunity to appreciate top design woven carpet laying at the booth floor produced

by Carpet Concept and Vorwerk.

The end of the Iranian carpet embargo is good not only for Iran and the people thereof, but also for American consumers of quality carpets and design, and to be frank, for longer term political stability. As it is beyond the ability and scope of any one article to feature every Iranian producer of carpets go forth with this advice from the close of my last article on Iran: ‘As the embargo has ended we should remain cognizant of the individual value of Iranian made carpets, but weary of their potentially overstated collective quality,’ as it true of any country or region. ■

sensitive to the ‘look and feel’ of their home décor items, Aquafil developed a new technology in order to produce a yarn that looks like a natural fiber, featuring 2DPF and a great softness with unsurpassed dyeing uniformity. ■

Aquafil’s innovation goals in 2016 will involve also this year the high-end residential sector, a growing industry with very specific needs. The booth hosts a variety of soft and shiny yarn samples, allowing a better understanding of the product quality.

At the booth there will be the possibility to admire the Glam2 collection, which was installed on part of the stand. With consumer demands that are increasingly

MOHAWK HOME INTRODUCES THREE NEW EVERSTRAND COLLECTIONS

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ohawk Home will introduce three collections made from environmentally friendly EverStrand polyester at the New York Home Fashions Market. EverStrand, Mohawk›s exclusive premium polyester is produced from up to 100% post-consumer content from plastic bottles, and offers a soft touch, inherent stain resistance and vivid color clarity.

The Antiquity Collection is inspired by ancient Persian handknotted rugs. Space-dyed to emulate the historical abrash dyeing technique, Antiquity rugs have a visual depth the company says resembles that of a watercolor painting. The line features rich jewel tones, dusty shades and sophisticated neutrals.

A casual expression of a global theme, the Anthology Collection is transitional with an artisan feel. Suzani patterns feature a palette of deep jewel tones, with accent colors of gray, coral, aqua, lavender or contemporary neutrals.

Tribal influences and modern geometrics characterize the rugs in the Simplicity Collection, with its modern interpretation of global design. Spirited contemporary patterns are colored in jewel tones, grays, dusty blues, blush, coral, aqua and lavender.

The Simplicity range is space-dyed for depth and color clarity. ■

14 ][ March 2016

■ Mohawk Home will launch Antiquity, a space-dyed collection of Persian inspired rugs at next week’s New York Home Fashions Market.

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■ The new Simplicity collection by Mohawk Home is crafted of EverStrand polyester is a series of tribal designs and modern geometrics.

Middle East and North Africa Carpet News »»»

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March 2016][ 15 2015/12/30 17:23:39

MENACarpetNews »»» AL SORAYAI GROUP EXPECTS CARPET AND FLOORING INDUSTRY TO GROW 30 PERCENT ANNUALLY UNTIL 2020

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Flowcrete Joins the Emirates Green Building Council Flowcrete Middle East has become a member of the Emirates Green Building Council (EGBC) because of its commitment to the sustainable production of flooring materials that provide large-scale developments with longterm environmental benefits.

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ince 2006 the EGBC has been advancing sustainable building principles to protect the environment and to ensure that the United Arab Emirates has a green future. This strong emphasis on sustainable built environments has made it imperative for the region’s construction industry to embrace environmentally friendly working practises and materials.

Flowcrete Middle East knows that, as a significant part of any development, the floor plays a key role in a building’s sustainability credentials. The resin-flooring manufacturer has analysed its systems through a green lens in order to ensure that the production, transportation and life cycle of its floors are as ecological as possible.

Flowcrete Middle East’s Managing Director, Kevin Storey, said: “Becoming a member of the Emirates Green Building Council highlights our commitment to the green building movement, which has seen us consistently evolve and develop floors that meet the region’s green standards.

“By working alongside the various building industry stakeholders in the Emirates Green Building Council we hope to be able to help the region move towards a greener economy and a more sustainable built environment.”

This green drive has included Flowcrete Middle East reducing or completely removing toxic substances such as Volatile Organic Compounds (VOCs) and solvents from its systems. Typically, construction materials produce large quantities of VOCs, which can be harmful to both the occupants of a building and to the environment.

gates. These are dispersed within the resin system to create luxurious, glittering surfaces, which simultaneously reduces the amount of waste sent to environmentally damaging landfills.

Once the resin floors have been produced they can still generate an excessive carbon footprint through transportation. As Flowcrete Middle East’s systems are locally manufactured in Dubai they qualify as green rated for any development within a 500-mile radius.

It is not only new-build projects that need to be accounted for, as it is important for existing buildings to be refurbished and retrofitted to make them greener. Flowcrete Middle East can provide floors that can be applied directly on top of the existing finish to reduce the waste incurred by taking up the old surface. The longevity of a hardwearing, highly durable resin floor means that sites can avoid floor failures, which will prevent the environmental costs of removing the old floor as well as producing, moving and installing a new one.

Flowcrete Middle East’s sustainable initiatives tie into the region’s best known Green Building Rating Tools, including LEED, BREEAM and Estidama Pearls Rating System. By supplying floors that meet the requirements of these assessment tools, architects and developers can rest assured that this critical aspect of the building will help them to meet these crucial standards. ■

The seamless epoxy terrazzo Mondéco range utilises recycled material as aggre-

16 ][ March 2016

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he carpet and flooring industry in the GCC and Middle East region is expected to grow 30 percent annually until 2020, according to industry sources. The expansion will be driven by the evolution in industry standards following the deployment of cutting-edge technologies and will be fueled by the completion of giant real estate projects, which are set to increase demand for local carpets and flooring and boost the presence of local and GCC manufacturing firms to meet this soaring demand.

The forecasts were revealed during the International Design Exhibition (ANDEX), which took place in Dubai in the presence of high profile corporate and individual attendees. Exhibition sectors include furnishings, kitchen and bathroom, lighting, outdoor living, retail and textile.

Speaking on the occasion, Mr Talal Al Sorayai, Chief Marketing Officer at Al Sorayai Group, one of the world’s leading industrial and trading groups in flooring and furniture, said, “The exhibition presented an opportunity to support the region’s industry and to highlight the importance of this sector and its role in developing the economy by meeting demand in real estate projects. The region is preparing to host two major global events: Expo 2020 in Dubai and FIFA World Cup 2022 in Doha. We have a multitude of mega projects currently underway in the GCC region, which are expected to significantly increase the growth rates.”

Al Sorayai added, “Consequently, we expect an annual growth of 30% in the flooring and carpet industry in the GCC and Middle East region until 2020. The outstanding performance of many leading players in this industry and the remarkable growth in terms of product supply serve as a testament to this growth.”

Exhibitors showcased their latest collections of luxury carpets and furniture to thousands of visitors.

Arabic carpets stole the show and proved superior to other international competitors during the exhibition. Visitors were impressed with the magnitude of participation and the quality of products.

According to international reports, Al Sorayai is the 14th largest carpet manufacturing and trading firm in the world, and Arabic carpets are swiftly moving forward to occupy a leading position as one of the world’s top ten finest carpets.

With more than 2000 employees on its payroll, Al Sorayai Trading & Industrial Group is operating in a resilient market. KSA, the mother country and base of the group, consumes about 70 million metres of moquette annually according to business sources, and is the world’s third largest manufacturer of carpets and moquette, with a total production volume of 120-130 million square metres of these floor fabrics annually, most of which are produced in eight major factories. Moquette manufacturing accounts for more than 51 percent of the total textile industry in the KSA, and is exported to over 75 countries across the world. The Group intends to expand into new markets in the coming period. ■

Middle East and North Africa Carpet News »»»

Dubai’s private sector faces shortterm challenges but long-term opportunities

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esearch released last week about the health of Dubai’s private sector made for difficult reading.

The Emirates NBD Economy Tracker Index showed that private companies signalled the first deterioration in overall operating conditions since data collection began six years ago.

Given the steadily worsening performance of the index over the last couple of months, this should not come as a huge surprise. All three segments covered by the index — travel and tourism, construction, and wholesale and retail — reported drops, while new orders also declined for the first time since 2010.

But for those who wish to seek them, there are still plenty of encouraging signs. The index also reported a slight increase in the private sector workforce, while companies surveyed said they had an improved level of optimism towards the one-year business outlook in February.

From the wider perspective, whereas some Gulf states have drastically cut spending, Dubai announced in December that its budget would rise by 12 percent in 2016, after a 9 percent rise the year before. Spending on infrastructure, transport and economic development will

increase by roughly the same amount, in a boost to the many contractors and service companies who rely on the pipeline of future projects remaining strong. Dubai’s Roads and Transport Authority (RTA) has projected an 18 percent rise in revenues in 2016, and is cracking on with 55 projects.

That compares favourably, for example, with Saudi Arabia’s decision to slash its own 2016 infrastructure and transport budget by 63 percent — a move which is already having a knock-on effect on the kingdom’s biggest contractors, fuelling delayed salary payments and lay-offs.

The Dubai government’s desire to push ahead with spending plans appears to be matched by the private sector. Despite a weak period for the city’s property values, developers are still rolling out projects, and many of them are targeted at the in-demand affordable housing segment.

The sorts of megaprojects that put the emirate on the map are still being developed — such as Dubai Holding’s Mall of the World — but they are being built in manageable stages, which makes more sense in the current environment. And for those who fear a repeat

of the collapse in property prices witnessed eight years ago, stricter controls on mortgage lending and higher transaction fees have alleviated those concerns.

While there’s no doubt it has been a difficult period for the UAE’s small businesses, there are signs that the banking sector is working hard to solve issues related to financing and repayment of debt. One estimate has put the cost of small business owners fleeing the country due to debt concerns at $1.4bn in 2015 alone.

Last week, however, the UAE Banking Federation announced that it was putting together a package to support SMEs in financial difficulties, including the suspension and restructuring of future payments. The introduction of a long-awaited bankruptcy law will no doubt assist these efforts.

External headwinds, such as the low oil price, regional instability and the strong US dollar will all play their part to make life difficult for the emirate’s companies. But if, as expected, the UAE’s economy grows by between 2.5-3 percent this year — compared to an overall OECD projected average of 3 percent — that would be an impressive performance in the circumstances. ■

GCC capital markets

to see bond issuances swell in 2016

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he GCC is set to experience record borrowing volumes this year as new players look to tap the international debt capital markets in a bid to fund capex initiatives and refinance existing debt.

“The low price of oil means GCC sovereigns, banks and companies are all in the process of reassessing their funding sources,” said Jonathan Brandon, Managing Editor of Bonds & Loans. “In the past, only a handful of players considered bond and sukuk markets for funding. But today, everyone is looking for alternatives, especially at a time when capital structures are increasingly becoming stretched. That is surely going to push the development of the market.”

Hard currency bond sales by Middle Eastern and North African companies will reach a record high in 2016, rising by US$4bn year-on-year to US$39bn, according to data from JP Morgan, despite the fact global debt issuances in other emerging markets look set to fall overall – from US$251bn in 2015 to US$238bn.

The low price of oil and subsequent drop in regional

liquidity is prompting borrowers in the GCC region to look to Eurobonds and hard currency denominated sukuk to fulfil their funding needs.

“The drop in oil price and uncertainty around future US Fed rate rises has increased pressure on bankers, issuers and investors to successfully close transactions to fuel the Middle East economy, leading to a higher rate of issuance in the region,” said Alex Johnson, CEO of Global Financial Conferences. “With a heightened need to secure funding and increasing competition to access these issuances, companies are going to need build strong business connections in this financially precarious time.”

World leading economist Simon Johnson (MIT Sloan School of Management & Peterson Institute for International Economics) will help shed light on the impact of future US interest rate rises and low oil prices on the GCC region’s capital markets at the Bonds, Loans &Sukuk Middle East conference in Dubai in April this year.

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market investors Brigitte Posch(Babson Capital), Salman Ahmed(Lombard Odier Asset Management) and Hans Humes(Greylock Capital Management), who will share some insight into why the region’s debt stands out among other emerging markets as a significant investment opportunity. ■

March 2016][ 17

MENACarpetNews »»» improvement of hand-woven carpet with academic knowledge of this group.

• How do you assess presence of Iranian carpet in international exhibitions like DOMOTEX? Presence in DOMOTEX is definitely useful for Iranian hand-woven carpet but we should not be limited to floor coverings exhibitions, because we believe that Iranian carpet may acquire its place in fashion and decoration designing industries through presence in exhibitions held in the areas of luxury and precious goods, furniture and handcraft and also may be improved proportionate to global demand.

Dr. Karegar speaks on return of Iranian carpet to America

India is the biggest competitors of Iran in the American carpet market Dr. Hamid Karegar has been appointed as Head of National Iranian Carpet Center and activities of this center have experienced positive developments. It seems that his young and creative spirit has affected performance of National Iranian Carpet Center. In these days that gate of global market is reopened for Iranian hand-woven carpet, we go to National Iranian Carpet Center to speak with Dr. Karegar on the center’s plans for exportation and passing exportation gates.

• How do you assess conditions of exportation and development of exportation of hand-woven carpet in post-JCPOA (Joint Comprehensive Plan of Action) period?

If we assume that our export income from hand-woven carpet during pre-JCPOA period has been 80 million dollars, I should say that hand-woven carpet industry suffered from sanctions in two aspects. On one hand, direct American sanctions against Iran since 2010 caused that we have lost biggest customers of out carpet as well as our exportation income.

On the other hand, problems and consequences of sanctions, including recession, inflation, transportation problems, impossibility of money transfers, lack of exportation insurance and collectively increase in exportation risk have resulted in a considerable decrease in exportation income gained from sale of hand-woven carpet within the past five years.

So, the first consignment of Iranian hand-woven car-

pet was shipped in January from Hanover port to Los Angeles and trade of carpet between Iran and U.S.A was resumed. Today, the most important thing is conditions of the market that we have not been engaged therein for 5 years and out Indian and Pakistani competitors could take advantage from this situation properly and now our successful presence in this market requires identification of market, new public and generational taste, situation of competitors in the market and applying modern marketing methods. Possibility of gaining previous export income during the current Georgian year is very low.

• Considering the existing stagnation in production of hand-woven carpet, do you think that we will be able to meet demands of foreign customers?

Although, under current conditions and due to stagnation in market and economic problems, some carpet producers have stopped their activity in this area, we are able to produce a quantity exceeding global demand.

• How presence of a young generation of carpet designers and weavers who are entered in this area with taking academic degrees from universities and technical & vocational centers affects status of this industry?

Hand-woven carpet industry required dynamism and presence of a new active generation that relies on academic education provides the basis for development of the industry and we hope to witness an increasing

Second Edition of

two years to complete. It was made from Cotton, and Wool sourced from New Zealand and Iran.

An International Carpet & Flooring Exhibition!

Arab Carpet Expo and its incorporated Events aim to make Abu Dhabi the hub of Carpet and Flooring in the MENA region by providing a platform for the world›s very best to showcase their products, services, technologies and innovations every year, now with the second edition in 2016. No other event in the region provides a platform such as this for exhibitors, sponsors, visitors, delegates and all other interested individuals and parties to participate in a set of events that focus specifically and only on carpet and flooring and to take advantage of the abundant economic, social, educational and environmental opportunities that exist locally and regionally in this space (see Exhibitors page for more information).

Arab Carpet & Flooring Expo

24 - 27 October 2016 Abu Dhabi, United Arab Emirates Abu Dhabi National Exhibition Centre (ADNEC) Arab Carpet Expo along with the incorporated Arab Flooring Expo, Yarn and Fiber Expo and the International Green Carpet and Flooring Conference in 2016, will run for the second time, and have the objective of providing a set of world-class international events in the symbolic city of Abu Dhabi at the award-winning ADNEC venue.

Abu Dhabi is the symbolic and chosen city for these events due to the presence of the Sheikh Zayed Grand Mosque which owns theworld›s largest hand-made carpet and has truly world-class flooring. This unique carpet, made especially for Sheikh Zayed Grand Mosque by around 1,300 Iranian carpet knotters, measures 5,627 m2 (60,570 sq ft). Its weight is 35 tonnes, has approximately 2.27 Billion knots and took approximately

18 ][ March 2016

Market opportunities highlights ► Abu Dhabi Abu Dhabi is set to be transformed by US$100B worth of construction projects, which include housing, education, transport and other developments. As stated by Fahad Al Raqbani, director general of Abu Dhabi Council for Economic Development, «These projects will emphasize the economic competitiveness of the Emirate, empower the role of the private sector and sustain the

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• Does National Iranian Carpet Center intend a special plan for the next DOMOTEX which will be hold in Shanghai?

During recent years, National Iranian Carpet Center has encouraged carpet manufacturers and exporters for a wider presence in Chinese market. Due to sanctions imposed by USA and losing its huge market, we turned to emerging markets. Improvement of economic conditions of China and expansion of the middle class in this country directed National Iranian Carpet Center to the China as a new market and fortunately we have had a successful performance.

During recent tears, the center has played its role as the biggest supporter of producers and exporters of this market. Specially, the center has supported Shiming Exhibition Shanghai province and Iran’s Carpet Pavilion has attended in this exhibition every year. We had a successful presence in Shiming in summer and we will have a special presence in the incoming exhibition, taking into account out negotiations with the exhibition’s conductors. But, the National Iranian Carpet Center will have no pavilion in Shanghai Exhibition which will be held in the next months and the manufacturers shall attend independently.

• Does National Iranian Carpet Center intend a definite plan for improvement of presence in International Exhibition?

Compilation of instruction on protection from foreign exhibitions is pending and the instruction organizes quality and level of exhibition. According to this instruction, the required subsidy will be granted to participants in full for presence in some exhibitions, but the subsidy for stall making and advertising may be granted to some other participant. Also, in some cases the participant shall only receive indirect exportation incentives.

• When the letter of instruction will be executed?

We hope to execute and finalize it till end of the current year. ■

local economy›s growth in a manner that will lead to accomplishing the objectives of the economic vision 2030.» ► United Arab Emirates The UAE is seeing renewed development, with the pickup in the Dubai real estate and tourism markets set to be reinforced by Dubai winning the right to host Expo 2020. Figures from the Department of Economic Development reveal the GDP of Dubai has grown over 4.5% in 2014, with the main drivers of the economy being tourism, trade, transportation and real estate. The UAE market is on track to reach the levels of investment last seen before the recession. It is also good to see that there are USD 12Billion of previously stalled projects within the country which have now resumed construction. ■

Middle East and North Africa Carpet News »»»

OTs, and reception areas, the architects and operators opted for the light, friendly colours of nora signa. The patient rooms have been fitted with noraplan uni. Here, dark brown hues generate an atmosphere of well being like at home.

A wide range of colours and inlays provide appealing accentuations The practical and creative benefits presented by floorings from nora systems also play a central role for the planners and operators of educational facilities. The Emirates are investing heavily in this sector, far more than 30% of the federal budget. The extremely young population is growing at a rapid rate, so education in the UAE is of central importance.

United Arab Emirates are building with and on rubber

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he United Arab Emirates (UAE) are undergoing rapid dynamic growth. In just a short time, modern industries, a significant services sector, a thriving tourist trade, and the rapidly growing population have made this region one of the most interesting economic regions worldwide. Above all Dubai and Abu Dhabi are booming. One of the central tasks the nation has set itself for the future is the expansion of infrastructure. The present projects include, for instance, a great many new schools, hospitals, and other institutes that are to make everyday life easier and more comfortable and raise the standard of living even higher. Many of these projects profit from renowned international architects that attach the greatest importance to high quality and sustainability in their choice of building materials. As a consequence, they often decide in favour of rubber floorings from nora systems. nora floor coverings combine all the properties that are important to planners, owners, and users of buildings: highest quality, good design, and environmental friendliness.

(VOCs),” explained Edmund Mahabir, spokesman for the Arzanah Medical Complex. nora floor coverings have been awarded many international environmental certificates like the Blue Angel, Greenguard, and BREEAM, they are free of plasticisers and organochlorine compounds, and hence they contribute to a healthy indoor air, so they fit perfectly in this concept. Another aspect that convinced the decision makers was their ergonomics and the associated benefits: Especially patients with knee problems find the walking and standing comfort of a flooring important. Whether the staff, cleaning personnel, or patients, they were all completely satisfied with these rubber floorings. And this not least of all because nora systems could present a convincing design in addition to their functional properties. “Our choice of colours focused specifically on calming and healing effects,” explained Mahabir. For the corridors,

Many renowned international schools and universities run branches in the Emirates. One of these is the British Foremarke Foundation. Inaugurated in Dubai in April 2013 and extending over nearly 26,000 square metres, this building complex not only houses the junior school rooms, but also offers sports grounds, swimming pools, multifunctional halls, laboratories, and a theatre. When choosing the floor covering, the British architects Brewer Smith and Brewer decided in favour of nora rubber floor coverings and submitted an order for about 5,000 square metres in total. The architects’ decision was swayed above all by the range of colours and the optional inlays in the floor covering serving as accentuations and visual demarcations between separate areas. noraplan sentica was chosen for the Foremarke school, and its lively colours contribute to the cheerful ambience that children find appealing. Likewise owing to its extensive range of colours, noraplan sentica was the planners’ first choice for the Repton school in Abu Dhabi as well. In addition, the planning architects’ agency Dewan Architects & Engineers opted for the extremely wear resistant rubber flooring norament satura with its particularly high colour saturation. The eyecatchers in the entrance area and the sports hall take the form of geometrical inlays in blue and yellow. An additional advantage presented by nora floor coverings is their ability to diminish footfall noise and promote a quiet learning environment.

Healthy, ergonomic, and easy to clean: Architects, building developers, and users the world over are convinced of the quality inherent in the rubber floor coverings made in Germany. In the United Arab Emirates too, they can now find a nora distribution office in Dubai, their competent adviser for projects in the Persian Gulf. ■

Low emission floor coverings for healthy indoor air This also applies in particular to clinics and hospitals.

The United Arab Emirates enjoy a high quality healthcare system and a good medical infrastructure. According to the official statistics, there are currently just under 950 public and private clinics – and the coming years will see further investments in the healthcare sector. In Abu Dhabi, the largest of the seven emirates and capital of the UAE, the New Zealand architects’ agency Parsons has erected the Arzanah Medical Complex. Opened in 2013, this new hospital houses a spinal surgery department, an ultra modern diagnostics centre, and a clinic specialising in knee and sports injuries. In this field, the hospital is a pioneer in the Middle East.

The total flooring surface, including entrance areas, corridors, operating theatres, and patient rooms, extends over nearly 25,000 square metres, so the choice of a suitable nora floor covering had to take a great many factors into account. It was important to planners and users that the floor covering complies with the most demanding hygiene requirements. It also must be easy to clean and healthy. “We wanted a robust flooring that contains the minimum of volatile organic compounds

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MENACarpetNews »»»

Successful DOMOTEX DOMOTEX 2016 drew to a close with outstanding results, earning its place among the best-ever stagings of the world’s flagship fair for carpets and floor coverings.

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ith 1,441 exhibitors from 59 countries and 45,000 trade visitors from more than 100 nations, DOMOTEX delivered fresh momentum for the international floor coverings industry, serving as a powerful driver of sales, trends and innovations.

“Whatever aspect you choose to look at – exhibitor lineup, visitor turnout, international coverage, the ratio of decision-makers present – exhibitors and visitors all attest to the event’s top performance, underscoring its ever greater appeal for the sector,” remarked Dr. Jochen Köckler, the Deutsche Messe Managing Board member in charge of DOMOTEX, on the last day of the show.

“DOMOTEX has demonstratively enhanced its reputation as an unrivalled source of momentum for the global floor coverings industry.”

Visitors from around the world found all the latest trends and innovations on display in 12 different exhibition halls, setting the stage for lively deal-making, order-placing and fruitful dialogue with business associates. Out of a total of some 27,500 visitors from abroad, around 50 percent came from EU countries, with another 25 percent coming from Asia and eight percent from the Americas. There was a notable increase in attendance from Asia, which went up by 29 percent. “DOMOTEX is the definitive meeting-place for the global floor coverings industry,” said Köckler, adding: “No other event in the world attracts so many high-caliber decision-makers.”

Highly international event stimulates new business The international scope and reach of DOMOTEX is key to its reputation as a powerful driver of new business.

“DOMOTEX is the central hub for the floor coverings industry – on a global scale. All the important players from every continent are represented here at DOMOTEX. That translates into outstanding business prospects at the fair,” commented Guido Schulte, Managing Director of MeisterWerke Schulte GmbH, based in RüthenMeiste, Germany.

Paul De Cock, President of the UNILIN Flooring Division in Wielsbeke, Belgium, also praised the event: “DOMOTEX is a key platform for our international business. Our stand attracted a steady stream of visitors, resulting in lively business and lots of purchase orders.

We are delighted with the outcome of the fair and feel upbeat about the business year ahead.”

Dr. Ali Ipektchi of IPEK - A. Ipektchi GmbH & Co. KG in Hamburg was also delighted with the event: “As exhibitors of Persian carpets and rugs, we see DOMOTEX as the most important international business event.

This has been a very successful fair for us. We took lots of orders and engaged in many promising talks with business partners and potential customers. At this year’s show, Persian carpets and area rugs enjoyed even greater prominence than last year. The lifting of the trade embargo on Iranian goods is very good news

indeed, as relaxed and positive business relations can only have a beneficial effect on our industry.”

High caliber of visitors

Exhibitors were delighted with the high level of competence and decision-making authority among the show’s attendees, with more than 72 percent of them being top managers who play a role in their companies’ purchasing decisions. The majority of visitors at this year’s DOMOTEX were retail and wholesale buyers (13,500 and 11,400, respectively). The fair also attracted architects, interior designers and contractors (3,700), as well as 9,400 skilled tradespeople.

Pacesetter for innovations

DOMOTEX impressively confirmed the floor covering industry’s dynamic power and innovative spirit. “In each and every segment – carpets, parquet and laminate flooring, designer floors, machine-woven carpets and hand-made rugs – the international floor coverings industry sported a stunning and highly innovative array of patterns, materials, shapes and colors, thus ideally positioning itself for the coming season,” observed Köckler.

Under the slogan “Tread on Me”, DOMOTEX invited visitors to “walk all over” the latest trends, including a wide range of natural-look rugs and carpets. This backto-nature trend was evident both in the prominence of beige, brown, green and pastel hues and in the frequent use of landscape images. Many designers are actually designing products in anticipation of footprints being left on them, making them reminiscent of grass or soft earth when freshly walked upon. This natural look is also in demand for wood flooring. Shapes and textures can be mixed and matched to create a wide range of looks. The event also showcased innovative systems for quick and easy floor laying. Another hot trend is carpeting in the form of tiles and planks, with one highlight being designer floor coverings that almost perfectly replicate wood grains or tiles, while at the same time being comparatively easy to lay. The demand for sustainably manufactured products is also on the rise.

The Innovations@DOMOTEX showcase put a big spotlight on highly innovative floor coverings. The three Innovations@DOMOTEX areas proved highly popular among the show’s visitors, drawing special attention to 84 selected innovations in the categories textile and resilient floor coverings, parquet and laminate flooring and contemporary hand-made rugs. This made it easy for trade visitors to get a concise look at the sector’s hottest innovations, thus providing valuable orientation for the year ahead. ■

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Middle East and North Africa Carpet News »»»

Manufacturing PA6 BCF specialties more profitably

VAN DE WIELE and SUPERBA join forces

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t this year’s DOMOTEX Asia / CHINAFLOOR trade show, Oerlikon Neumag will be presenting its diverse range of products and services in Hall W3, Stand H01. The international trade will be meeting in Shanghai at the Asia-Pacific region’s most important trade show for flooring between March 22 and 24. The focus of the Oerlikon Neumag stand will be on solutions for the efficient manufacture of carpet yarns.

The exemplary success of the S+ BCF system over many years clearly shows that there is also a focus on efficiency in BCF yarn manufacturing. Since being launched in 2011, the S+ is the world’s biggest-selling BCF system, efficiently manufacturing high-end BCF yarns across the globe.

The S+ offers superlative performance in terms of efficiency

The three-end S+ convinces not just with its 99% efficiency and its resulting cost savings in terms of raw materials, it also covers a very broad spectrum of producible total titers ranging from 700 to 4000 dtex.

Furthermore, the multipolymer systems can be used without modifications to process all polymers, from polyester and polypropylene all the way through to polytrimethylene terephthalic (PTT).

The product program is complemented by the single-end Sytec One, which is convincing particularly in the specialties segment with its superlative yarn quality and high degree of flexibility.

Trend towards high-end yarns with fine filament titers

Due to consumer behavior in the flooring segment, the Asian market has to date been considered a small market with a strong focus on contract products. However, there seems to be turnaround taking place here: high-end PA6 yarns with fine single filament titers are increasingly in demand. The rea-sons for this are generally believed to be the extremely low price of oil and the newly-established PA6 capacities in Asia, causing a price fall of approx. 30% for PA6 granulate in the last six months alone.

“The current market conditions particularly in China have resulted in low prices for PA6. In turn, this has created an extremely interesting new market for high-quality carpets. Our systems are particularly wellpositioned in the premium-price segment, which explains the currently stronger interest in our systems especially within the Chinese market”, comments Alfred Czaplinski, Sales Manager BCF.

Domotex Hanover, Germany, as a promising herald of things to come

Oerlikon Neumag was also satisfied with the four lively trade fair days in Hanover in the middle of January. With order contracts in the tens of millions of euros signed – predominantly within the European, US-American and Chinese markets – the volume of orders received within the context of the Domotex show in Hanover was unexpectedly good.

Partnering for Performance

In addition to the machinery portfolio, Oerlikon Manmade Fibers Segment will also be showcasing its expanded range of services under its ‘Partnering for Performance’ motto. With high-performance local operations in China, our Customer Service offers customer not only fast provision of original OEM quality parts, it also supports its Chinese customers with maintenance, repairs, training sessions and seminars, process consultation and numerous additional services. This guarantees that yarn manufacturers are able to profitably operate their systems in the long term.■

ednesday May 27th witnesses the creation of a unique force in the world of the manufacturing of yarns for carpet: the Belgian consortium Van de Wiele signed an agreement to purchase the French company Superba and the US company American Superba.

activities and is also offering tufting machines (Cobble-Van de Wiele), extrusion machines for carpet yarns, high-speed Jacquard machines, drives, yarn feeders and various other electronic components.

The Van de Wiele group employs worldwide over 2.900 people and achieves a turnover over 500 million euro.

Superba is the world leader in the manufacturing of heat setting machines for carpet yarns. Superba has developed a unique and performing heat setting system based on saturated steam. With 40 years of experience in the highly specialized field of yarns for tufted and woven carpet, Superba is providing advanced and competitive solutions with a complete range of machines. The product portfolio does not only contain steaming and shrinking lines,but also sophisticated space-dyeing machines. Superba machines are characterized by high performance, efficiency and environment friendliness, integrating the latest technologies interm of automation, information treatment and remote access.

Superba will continue to operate from Mulhouse, France, the USA and China.

The acquisition presents a complementary extension of the Van de Wiele range with maximum synergy of markets and knowledge. The know-how of Superba in the field of yarn technology will improve the performance of the weaving, tufting and extrusion machines while the knowledge of these technologies will lead to better performing heat-setting lines. All this resulting in new developments and better performing machines for the benefit of the customer.

Van de Wiele and Superba, two historic and famous names in the carpet technology, have now come together to help the industry achieve new heights of innovation, quality and profitability. The transaction is expected to close in the next two to three months after completion of the usual due diligence. ■

Van de Wiele has for many years a leading position in the manufacturing of carpet and velvet weaving machines. The constant drive for innovation has led to several revolutions in the field of carpet weaving. Van de Wiele has extended its

STEPEVI LAUNCHES NEW RUG COLLECTIONS AT MAISON & OBJET JANUARY 2016

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his January at Maison & Objet, leading luxury rug brand STEPEVI introduces two new collections, Gloss and Vibration, to its existing range of bespoke contemporary rugs.

Inspired by the concept of ‘subtle glamour’, the Gloss collection comprises of two designs, ‘Hoop’ and ‘Grid’. Featuring a neutral colour palette of dusky greys, the collection encapsulates understated luxury, with tranquil patterns and earthy tones emulating the natural world. The collection features STEPEVI’s signature cut & loop weaving technique, which has been applied to its new ‘Flat Viscose’ quality, woven from 100% viscose yarns. The technique combines the natural sheen of the yarn with a subdued semi-matte effect creating a highly tactile finish. The Vibration range has a bold aesthetic.

STEPEVI STEPEVI is in a proud position to further re-define rugs across the world with a wealth of experience and expertise. Built upon a foundation of creativity and desire to make rugs a key element of interior design, the company became the market leader over three generations of successful enterprise in Istanbul. Combining traditional rug making techniques with new technology, STEPEVI provides excellent customisation and contract services not only to reMedia release tail2016 customers, but also to architects and designers January STEPEVI LAUNCHES within NEW RUG COLLECTIONS of high-end interiors projects 4 weeks. Today, AT MAISON & OBJET JANUARY 2016 STEPEVI continues its global expansion with bouLocation: Maison & Objet, Hall 8 (B49 tiques and offices in– C50) London, Paris, Milan, Geneva, Dates: 22 – 26 January 2016 New York, Istanbul and Munich. ■

This January at Maison & Objet, leading luxury rug brand STEPEVI introduces two new collections, Gloss and Vibratio to its existing range of bespoke contemporary rugs.

Vibration collection ‘Clash’ in Titanium Gray & black

Contrasting colours and sculptural patterns create the look of continuous, flowing movement. The collection comprises of three designs, ‘Fusion’, ‘Clash’, and ‘Band’ with a dark palette of greys and blacks creating a strong visual in any space. STEPEVI rugs can be customised to any size and/or shape in selected colors within four weeks.

Gloss collection ‘Hoop’ in Pebble Gray

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Vibration collection ‘Clash’ in Titanium Gray and Black

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Inspired by the concept of ‘subtle glamour’, the Gloss collection comprises of two designs, ‘Hoop’ and ‘Gri Featuring a neutral colour palette of dusky greys, the collection encapsulates understated luxury, with tranq patterns and earthy tones emulating the natural world.

The collection features STEPEVI’s signature cut & loop weaving technique, which has been applied to its new ‘F

MENACarpetNews »»» Noury Peykar, Chairman of Nourison, Deceased at age 95

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r. Peykar, was born in Kashan, Iran on October 20, 1920, and is survived by his sons Paul, Edmond, Alex, and Steven Peykar, his daughter Maggi Hakimi and their spouses, 11 grandchildren and 27 great-grandchildren. His first wife Joanna died in 1959. His second wife, Esmat recently passed August of last year.

FEIZY INTRODUCES HAUTE

Noury Peykar founded Nourison with his four sons in 1980. The name Nourison was a combination of “Noury” and “sons” and a tribute to their father and his legacy. They founded Nourison with little means, but were fortunate enough to build a successful company that has become a leader in their industry and has continued to grow over the past 35 years.

Noury Peykar still came to the Saddle Brook office on most days. He was a kind person and greeted everyone with a warm smile and a friendly wave. It is with much sadness that the Nourison family makes this announcement. Mr. Peykar will be missed.

TRENDS DESIGNERS IN LAS VEGAS; FIRST COLLECTION TO LAUNCH IN HIGH POINT

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record crowd of 300 designers and buyers turned out to learn more about Feizy’s Haute Trends program, and to meet the four designers chosen to create designs for the rug maker’s inaugural Haute Trends collection, at a champagne brunch held on Jan. 25 at the Feizy World Market Center showroom during last month’s Las Vegas Market.

About Nourison Nourison is a leading global floor covering company that produces extensive collections of area rugs, broadloom carpet and home accessories at multiple price points from low to mid-market to luxury. A fully verticallyITSH16_210x297_Kohan integrated company, Nourison oversees Journal.pdf 1 3/3/2016 3:06 PM almost every aspect of the manufacturing process and produces over 85% of their product assortment

After reviewing numerous design concepts, the company has whittled the selection to two hand-tufted rugs from each designer, all currently in production.

The premiering Haute Trends collection will debut at High Point Market in April, according to Kim Vance, of marketing and communications at Feizy. “We were blown away by the creativity of these designers - they have applied their talent to creating rugs that are truly original, ahead of the trend curve, and yet perfectly aligned with our customers’ lifestyles and decorating tastes.”

Feizy has taken a different approach with its new designer rugs program, opting to work with designers who are not yet on top 100 lists, but ready to ascend to the next level with the proper exposure. “These are the real rock stars of design in our country, and we want to help them get the recognition they deserve. There any so many more incredibly talented interior designers across the county, and we hope to hold our talent search again next year to build on the Haute Trends program.”

Vance attributes the high turnout at the Vegas market event to keen interest in the program by designers hoping to be considered for the next round with the goal of jump starting their own product licensing opportunities in other categories.

The four designers, Julia Buckingham of Buckingham Interiors + Design in Chicago; Kerrie Kelly Kerrie Kelly Design Lab of Sacramento, Calif.; Jackie Von Tobel of Jackie Von Tobel Design in Las Vegas; and Michel Boyd of Smith Boyd Interiors in Atlanta, are currently cross-promoting the program on their own websites and social media to generate excitement leading up to the High Point Market collection launch. ■

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Left to right: Alex Peykar, Steven Peykar, Noury Peykar, Edmund Peykar and Paul Peykar

from sustainable, natural fibers. Their quality, extensive inventory and speed to market has made them valuable partners in the home furnishings and hospitality industries. Their product assortment includes licensed collections from well-known brands including Calvin Klein, Kathy Ireland, Waverly, Barclay Butera, Joseph Abboud, Peanuts and more. Nourison was founded in 1980 by the Peykar brothers in New York and still remains a family-owned company.■

Middle East and North Africa Carpet News »»»

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