InDEPTH | AT A CROSSROADS
ahead,” she says, emphasizing agility in a volatile market. Suppliers Absorbing Costs and Navigating Customer Relationships Supplier responses reveal the tension between absorbing tariff costs and maintaining customer relationships. Kalaty Rugs , for example, chose to absorb a recent 10-percent tariff increase to shield customers from immediate price hikes during a 90-day tariff hold. Suppliers Absorbing Costs and Navigating Customer Relationships
ahead,” she says, emphasizing agility in a volatile market. Natco Home’s Litner cites a mixed response to its strategies from its retail partners, with some sharing tariffs with suppliers and others canceling or delaying orders, reflecting a more cau- tious buying environment.
model, leading to store closures while searching for potential buyers. This closure symbolizes the difficult terrain many retailers face, where margin pressures and supply chain volatility require new operating models. While tariffs have undeniably intro- duced complexity and cost pressures, they have also accelerated industry trends toward domestic production, supply chain diversification, and oper- ational agility. For the U.S. area rug market, this moment presents an opportunity albeit with challenges: adapt with nimbleness, innovation, and strategic foresight to emerging This closure symbolizes the difficult terrain many retailers face, where margin pressures and supply chain volatility require new operating models. While tariffs have undeniably intro- duced complexity and cost pressures, they have also accelerated industry trends toward domestic production, supply chain diversification, and oper- ational agility. For the U.S. area rug market, this moment presents an opportunity albeit with challenges: adapt with nimbleness, innovation, and strategic foresight to emerging model, leading to store closures while searching for potential buyers.
Supplier responses reveal the tension between absorbing tariff costs and maintaining customer relationships. Kalaty Rugs , for example, chose to absorb a recent 10-percent tariff increase to shield customers from immediate price hikes during a 90-day tariff hold. Wendy Reiss , VP of Sales and National Accounts at KAS Rugs , explained to RUG INSIDER the company’s decision to drop three collections sourced from China amid tariff uncertainty. Kas is holding prices steady on current inven- tory to encourage retailer stocking while exploring alternative sourcing options. “We’re staying one step Wendy Reiss , VP of Sales and National Accounts at KAS Rugs , explained to the company’s decision to drop three collections sourced from China amid tariff uncertainty. Kas is holding prices steady on current inven- tory to encourage retailer stocking while exploring alternative sourcing options. “We’re staying one step
Natco Home’s Litner cites a mixed response to its strategies from its retail partners, with some sharing tariffs with suppliers and others canceling or delaying orders, reflecting a more cau- tious buying environment. The recently announced liquidation of Culver City, CA’s H.D. Buttercup—a home furnishings icon renowned for luxury and artisan-made pieces— underscores the economic challenges confronting the sector. Tariffs, along- side broader economic uncertainty, disrupted the company’s business The recently announced liquidation of Culver City, CA’s H.D. Buttercup—a home furnishings icon renowned for luxury and artisan-made pieces— underscores the economic challenges confronting the sector. Tariffs, along- side broader economic uncertainty, disrupted the company’s business
As conditions evolve, companies across the area rug sector are identifying important strategic priorities. Here are some tips collected from industry players and experts for tackling uncharted tariff impacts ahead: Emphasize Flexibility and Scenario Planning Retailers and suppliers alike must monitor tariff news and exclusion updates continuously, engage brokers early, and be prepared to adjust sourcing and inventory strategies swiftly. Leverage Domestic Manufacturing The renewed interest in U.S.-made rugs is not a temporary hedge but may represent a fundamental sourcing shift— improving lead times, quality control, and risk mitigation. Diversify Sourcing Footprints The renewed interest in U.S.-made rugs is not a temporary hedge but may represent a fundamental sourcing shift— improving lead times, quality control, and risk mitigation. Diversify Sourcing Footprints Global suppliers benefit from multi-country production capabilities, allowing nimble reallocation of orders and mitigating regional tariff impacts. Communicate Transparently With consumers facing higher prices and fewer promotions, clear messaging around value and quality is vital to maintain brand loyalty. Invest in Innovation and Marketing Distinguishing products through craftsmanship, ethical sourcing, and compelling storytelling will help brands weather cost pressures and stand out in a crowded marketplace. With consumers facing higher prices and fewer promotions, clear messaging around value and quality is vital to maintain brand loyalty. Invest in Innovation and Marketing Distinguishing products through craftsmanship, ethical sourcing, and compelling storytelling will help brands weather cost pressures and stand out in a crowded marketplace. As conditions evolve, companies across the area rug sector are identifying important strategic priorities. Here are some tips collected from industry players and experts for tackling uncharted tariff impacts ahead: Emphasize Flexibility and Scenario Planning Retailers and suppliers alike must monitor tariff news and exclusion updates continuously, engage brokers early, and be prepared to adjust sourcing and inventory strategies swiftly. Leverage Domestic Manufacturing Global suppliers benefit from multi-country production capabilities, allowing nimble reallocation of orders and mitigating regional tariff impacts. Communicate Transparently
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