Exporting pays off

Business America, Nov, 1996

We select our export success stories, not because we endorse any particular firm or its business plan and activities, but because we believe their experiences will instruct other companies to improve their export performance. We welcome your export success story. Write or call Business America, Room 3418, U.S. Department of Commerce, Washington, D.C. 20230, tel. (202) 482-3251.

It could be an American business person's prayer May Iopen a business, and within five years sell my products all around the United States, and may I also please export to 84 countries around the world. Well, this prayer has come true for The Rug Barn of Abbeville, S.C., a manufacturer of woven cotton rugs, throws, and other textile products.

Mary Lynn Landgraf, Director of International Sales for The Rug Barn, says that three key elements have contributed to the company's quick success: good designs, excellent customer service, and rapid delivery. The firm uses state-of-the-art equipment--computerized looms--and in-house and consultant/designers for its products. Begun in 1991 by Harry and Barbara Scharling with 10 employees, this business now employs nearly 600 people in its "high season."

One element that has helped make successful international sales is the thorough care that goes into the designs. "We try to accommodate the needs of the market with our designs. We have studied different cultures, as well as international business etiquette, and know what colors, symbols, and prints will work in certain countries, and which will not," says Landgraf.

"Watching and listening to the consumer are basic keys to sales success," notes Landgraf. "The company began weaving cotton rugs as its main product, but soon saw the demand of cotton throws as the real draw. Now, the throws are our leading sales item." Soon after the first cotton throw was designed and distributed nationally, the French and British began demanding them as well, so the export sales began and grew quickly. What followed was an explosion of other products, such as coverlets, pillows and shams, blankets, place mats, table runners, and Christmas tree skirts. The international arm of The Rug Barn now embraces 20 distributors that handle 45 countries. Exports to other lands are handled by direct sales.

Further expansion of the company included the purchase last year of Home Innovations, Inc., a maker of home accessories, which also introduced the Calvin Klein Home Collection. Home Innovations and The Rug Barn together under the parent company, Decorative Home Accents, bring curtains, bedding, and coordinated bath products to its repertoire.

Landgraf has been in international business of one kind or another for many years. She was a District Export Council member in Maryland, Virginia, and both North and South Carolina. She has traveled on trade missions, taken advantage of many Commerce Department services--including Gold Key--and has been invited by foreign governments to lecture on international business strategies. Recently the Design Directorate invited her to speak before its "Design for Business" lecture series in Belfast.

The Rug Barn has now incorporated Celtic designs into some new products, which have proven to be big sellers in Ireland and worldwide. So intent is the firm to see its international efforts through that it has an agreement with the Agency for Training and Employment in Northern Ireland, which is an employment and training organization that also assists in placing qualified graduates overseas for up to 18 months. With this understanding, visa arrangements have been made for two Irish interns to work at The Rug Barn. For 18 months they will share their expertise and talents, and also learn the ways of a growing American company. The Rug Barn also has a cooperative agreement with the University of South Carolina, whereby a student in the school's master of international business studies works as an intern in the field--in this case Europe and South America.

Future endeavors for The Rug Barn include designs by Swedish artist Carina Hagg, sending representatives to top international textile trade shows this winter, a soon-to-beannounced major strategic global alliance, and, of course, "blanketing" the whole world with its products.