DALLAS– Since its inception five years ago, Amir Loloi's vision for Loloi Rugs has been to continually bring innovation and value to the rug industry.
Since the company was launched in 2004, Loloi has faithfully marked each anniversary with a big showroom party as well as new product excitement. On January 8, from 5 to 8 p.m., the celebration will be bigger than ever. The Atlanta Showroom (4-C-7) has been expanded to 7,000 sq. ft. and once again, Loloi is stretching the envelope on new constructions and styles at affordable prices.
Rugnews.com: To what do you attribute your fast growth in the industry.
Amir Loloi: I have to give credit to our customers for believing in our company and in our products. Our customers tell us that our products do well at retail.
We have also received tremendous support from the folks on the manufacturing side, and we work closely together to bring unique approaches to construction and design.
Very importantly, Loloi is not a one-man operation. We now have 60 full time employees on our staff. We also have over 70 free agent sales representatives that cover the whole country, with specialists in both the home accessories channel and the specialty store channel.
Rugnews.com: Is there anything you would have done differently over the past five years?
Amir Loloi: Quite frankly, no. I am happy with the overall philosophy and structure of the company. In the beginning, I would have liked to have had some higher-end products, but with the current state of the economy, it probably worked out for the best. With the current state of the economy, I think affordability is key. Investment in high end product is much more problematic these days.
Rugnews.com: What do you think your biggest contribution to the industry has been?
Amir Loloi: I think we did a lot to raise the bar on color, design and value. We raised the expectations of our customer base and we all made this a more fashionable industry with focus on texture, design and color.
I think we did a lot to develop new product categories by using out-of-the box thinking.
The growth of Loloi has been very gratifying, but it's also a lot of work. Every two to two and a half months, I am traveling overseas on trips that last two to three weeks. I want to spend a lot of time working directly with our manufacturers to develop products that are truly a collaborative effort.
Rugnews.com: Where do we go from here? What are your short and long-range plans?
Amir Loloi: Short term, we have nearly doubled the size of our Atlanta showroom, and we think the people coming to market will have an enhanced shopping experience.
We are also learning to manage our inventory very, very carefully. Our industry has a limited amount of business and we don't want to disappoint our customers. We want to be sure that we are in a stocking position so our retail customers can satisfy the needs of their own customers.
Inventory management is not the most glamorous topic, but it is extremely important, especially under the current economic conditions.
On the product side, we are constantly driven by the need to come out with concepts that keep our customers excited, whether business is good or bad. It is very VERY important to have something to be excited about. Our customers are going to spend their money wisely, so they are looking for the most exciting and saleable products for their stores.
We are going ahead full steam ahead with new products, and we have seven or eight new collections coming onstream in January.
For the long term, we are looking forward to expansion of our distribution center. We built a 50,000 sq. ft. headquarters and warehouse a year and a half ago, and we are already running out of space. We hope to expand in Dallas in late 2009 or 2010.
Rugnews.com: How has the rug industry changed in the past five years?
Amir Loloi: The rug industry is now completely related to the home furnishings industry. It doesn't exist in a vacuum.
Because rugs are a part of home furnishings, they have also been negatively impacted by the housing crisis and the credit crunch. They have both affected the rug industry significantly.
As far as consumers are concerned, we are in a luxury business. Rugs are certainly not a necessity.
For Loloi Rugs, our goal is to capture a larger piece of whatever business is out there.
Rugnews.com: How will the industry change in the next five years?
Amir Loloi: I predict there will continue to be a lot of turbulence in general and many challenges in all segments of the business.The industry is over-saturated, and I foresee a shake-up at every level from manufacturer to wholesaler to retail.
The real challenge is to have stability in the market. Service and support has become more important than ever before. In the future, the companies that can deliver service and support will prevail.
The companies who have the strength and flexibility to change their own businesses will come out far ahead. You've got to be in touch with your customers and be able to act quickly in the cuurent business climate.
We must remember that these challenges also represent opportunities for creating better products and gaining more market share..
The companies who can develop a better plan and take an action will be the ones who survive. If you are re-acting, you're already too late. At all levels of the business, things are changing rapidly and you to be very pro-active and ahead of the curve. You've got to take a chance in every aspect of your business.
These could be VERY exciting times.
Rugnews.com: Thank you for your thoughtful insights!