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Rugs & Carpets RUGS & CARPETS MCP-2821 A GLOBAL STRATEGIC BUSINESS REPORT CONTENTS I. INTRODUCTION, METHODOLOGY & Carpets ...................................................................................II-7 PRODUCT DEFINITIONS Definition............................................................................II-7 Classification ......................................................................II-8 Study Reliability and Reporting Limitations........................... I-1 An Overview of Select Carpets...........................................II-8 Disclaimers ............................................................................. I-2 Classification of Rugs & Carpets – A Complex Task.............II-9 Data Interpretation & Reporting Level.................................... I-2 Classification by Production Weave ...................................II-9 Quantitative Techniques & Analytics .................................. I-3 Classification by Raw Material Used..................................II-9 Product Definitions and Scope of Study.................................. I-3 Classification by Production Mode.....................................II-9 Rugs ..................................................................................I-3 Carpets................................................................................. I-3 4. Technological Developments .....................................II-10 CAD Systems.......................................................................II-10 II. EXECUTIVE SUMMARY Recycling of Post-Consumer Carpets & Rugs......................II-10 Environmental Emphasis......................................................II-11 1. Industry Overview ...................................................... II-1 Current & Future Analysis .....................................................II-1 5. Recent Industry Activity............................................II-12 Table 1: World Rugs & Carpets Market (2005 E): Shaw Acquires Evergreen ....................................................II-12 Percentage Breakdown by Area of Use –Residential Mohawk Plans to Acquire Carpet-Backing Plant from and Commercial .................................................................II-2 Propex Fabrics..................................................................II-12 Trident Diversifies into Rugs and Bedding ..........................II-12 Export Scenario ..................................................................II-2 Collins & Aikman to Exit Automotive Fabrics Business......II-12 Table 2: World Market for Rugs & Carpets (2005 E): Abbyson Diversifies Into Furniture Business.......................II-12 Breakdown of Leading 10 Exporters by Percentage Low & Bonar to Acquire Colbond .......................................II-13 of Total Export Orders - China, Turkey, Greece, US, Naksan Enters Into Contract With Pierre Cardin..................II-13 India, Bangladesh, Iran, Pakistan, Poland and Brazil Log Cabin and Garland Join Hands......................................II-13 (includes corresponding Graph/Chart)...............................II-2 Headlam Group Acquires Gaskell Flooring .........................II-13 Historic Review..................................................................II-2 Shaw to Acquire Carpet-Backing Operations of SI Corporation ..................................................................II-14 2. Trends & Issues........................................................... II-3 Shaw Plans to Acquire Nylon Carpet Business From Honeywell ...............................................................II-14 Hand-Knotted Rugs Bounce Back..........................................II-3 Mohawk to Acquire Unilin...................................................II-14 Bright and Whimsical Patterns Are In....................................II-3 Interface Receives Certification ...........................................II-14 Licensing Activity Heats up in Area Rugs Arena...................II-3 CARE and Tricycle Join Hands to Reduce Kids Rugs – Emerging as a Lucrative Business .....................II-3 Carpet Landfills ................................................................II-15 Holiday-Themed Rugs – Smooth Sailing in Troubled Mohawk Industries Signs a Distribution Agreement with Waters.................................................................................II-4 DuPont..............................................................................II-15 3. Product Overview........................................................ II-5 United Carpets to Expand Franchise Network......................II-15 Maples Industries and Official Pillowtex Signs License Rugs.......................................................................................II-5 Agreement .......................................................................II-15 Definition............................................................................II-5 Hellenic Rug Imports Expands Market Showroom ..............II-15 Classification of Rugs.........................................................II-5 Shaw Living Inks Partnership with Dualstar Consumer By Size............................................................................II-5 Products............................................................................II-15 Room-size Rugs...........................................................II-5 Carmel Carpets Buys US factory..........................................II-16 Bathmats......................................................................II-5 Industry Activity In The Recent Past....................................II-16 Area/Accent Rugs........................................................II-5 Glenoit Rugs Augments Rug Offerings with Imports .......II-16 Scatter Rugs.................................................................II-5 Milliken Carpet and Rugs Joins Forces with Discovery By Production Mode .......................................................II-5 Network.........................................................................II-16 Handmade Rugs...........................................................II-5 Natco Acquires Flemish....................................................II-16 Machine-made .............................................................II-6 Springs Acquires Beaulieu Rugs Division ........................II-16 By Production Method ....................................................II-6 Nourison and Waverly Sign a Licensing Agreement ........II-17 Woven .........................................................................II-6 Mohawk Home in a Licensing Agreement with Susan Tufted Rugs .................................................................II-6 Sargent Designs.............................................................II-17 Hand-Knotted Rugs .....................................................II-6 Capel in a Licensing Agreement with Colonial Needlepunch/Needlepoint Rugs...................................II-6 Williamsburg.................................................................II-17 Braided Rugs ...............................................................II-6 Barbara Smith Signs Licensing Agreement with Mohawk Hooked Rugs ...............................................................II-6 Home….........................................................................II-17 Hand-Hooked Rugs..................................................II-6 Orian Rugs Expands its Scatter Rugs Range.....................II-17 By Style...........................................................................II-7 Sears Exits the Floor Coverings Business.........................II-17 RUGS & CARPETS - A GLOBAL STRATEGIC BUSINESS REPORT 08/06 Page 1 This Report Is Protected With Digital Watermarks. Copyrights per US & ICC protocols. This Document May Not Be Printed, Copied or Distributed Outside Your Organization in Any Form Without Our Express Written Permission RUGS & CARPETS MCP-2821 A GLOBAL STRATEGIC BUSINESS REPORT CONTENTS Berkshire Hathaway Acquires Shaw Industries ................II-17 Beaulieu Showcases Aqua Hospitality Carpets ....................II-25 Prestige Mills Acquires Larsen Carpet Line of Rugs Gulistan, Shaw Living, and Milliken Unveil New from Ruckstuhl..............................................................II-18 Stainmaster Area Rugs......................................................II-25 Godrej & Boyce Enters into a Partnership with Donegal Twist from Ulster ..................................................II-26 Milliken's ......................................................................II-18 VC4life Collections from Victoria ......................................II-26 Noonoo Partners with Radici ...........................................II-18 Victoria Augments Product Portfolio ..................................II-26 Trans-Ocean in a Strategic Alliance with Devonia Plains from Axminster ..........................................II-26 Stanton Carpet...............................................................II-18 Axminister Augments Moorland Choice .............................II-26 Windham Weavers Forges Licensing Partnership with Espalma Introduces Bath Rugs.............................................II-26 Pfaltzgraff .....................................................................II-18 Product Introductions/Innovations in Recent Past ...............II-27 Home Depot Teams up with Lynette Jennings..................II-18 Springs Industries to Launch Cat in the Hat .....................II-27 HomeBase
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