THE GRAND BAZAAR

The United States embargo on Iranian goods which was signed by President Reagan on October 29, 1987, is already being felt in the U.S. old oriental rug trade. Whether it is or will be felt in Iran is another matter. However, since the oriental rug trade is so small, so poorly organized professionally to protect and promote its own interests, and insignificant in terms of U.S. trade balances, the embargo is likely to stay. In contrast to Jimmy Carter's grain embargo, which did not last because it gored the interest of the strong U.S. grain lobby, it is unlikely that an Administration which views the actions of the Iranian Government as "rug merchant stuff" would be receptive to lobbying by the oriental rug trade, which is neither so powerful nor as important as other special interest groups. Lot 79. Antique Gerus Bijar, Rippon-Boswell, November 15, 1986

All of these dealers are finding it increasingly difficult to find good old pieces. The most sought-after types are still roomsize Herizes, Serapis and Bijars, but dealers are also seeing strong interest in the U. S. market for Ferahan, Kerman and Tabriz rugs, e.g. pieces with more formal patterns.

Sam Hakim of Hakim Oriental Rugs expressed frustration with the embargo because he used to buy Heriz area rugs in Europe for sale here, and that is no longer possible. Many private buyers seem to be under the impression that it is only goods recently shipped from Iran that are embargoed, but that is not the case. Any product of Iranian origin regardless of its age, prior use, or source cannot enter the United States.

Rom Moheban sees increased interest in recent months in Agras and other turn-of-the-century Indian rugs. In part, this is due to the shortage of old Persian goods, such as Mahals and Sultanabads, which many of the Indian rugs resemble. But there are so few of them available considering the demand that they are not a replacement rug for the Persians. Thus these old rug dealers are forced to rely on the secondary marketplace in the United States for their supplies.

Until the Iran/Iraq war ends and tension in the Persian Gulf eases, the embargo will remain. Both dealers and consumers of old rugs are likely to find them hard to locate and more expensive in the months ahead. [Ed. Note: as of 12/20/97 the embargo is still in force] Abraham Moheban & Son was the only company that brought a large inventory of old rugs and was ready to show and sell on the spot. Fifty percent plus were Heriz area rugs; the balance were fine city rugs, Bijars, Arak region, and some Chinese and Indian rugs. The Mohebans have been exhibiting at NORS for several years and have clients they regularly see there.

In contrast, Persian Gallery Co., Hakim Oriental Rugs,and Kamali Brothers brought a limited number of rugs. Their objectives were keyed more toward exposure, to make new contacts, and to let the dealers see a sample of their goods. Sam Hakim, in particular, displayed a variety of runners, which was a smart idea. Runners are the hardest rugs for the dealer to sell and the hardest for the consumer to find. He maintains an extensive inventory of runners and sells many of them. But it is only with an extensive inventory that he can meet retailers' specifications of width, length, color, condition, pattern, and price, factors which are very inflexible in runners.

Ike Hakim of Persian Gallery Co. felt it was important to maintain a presence at the Atlanta show because the South is the strongest region for old rugs, particularly Heriz area rugs. He opted not to move uptown last year when many of the old rug dealers moved to the Potemkin Building at West 54th Street; instead he moved over to 102 Madison Avenue from 245 Fifth and occupies one entire floor. He feels his clients are more at ease in this location because it has neither the distraction of so many dealers on one floor nor the chaotic atmosphere which prevailed in the old building.

This was not Barry Kamali's first year at NORS, but it was his first year as a strictly old rug dealer. He had the fewest rugs of any, but they were selected for a purpose. The Kamalis have developed a set of photograph albums of their inventory; a dealer wishing to work with Kamali Brothers and receive the albums must purchase them. At this time, Mr. Kamali has 26 retail dealers, each in a different market area, who have the albums to show prospective clients. If a rug seems suitable, it is shipped out on approval; it is hoped, of course, that it will sell and not have to be shipped back. Every six weeks the dealers receive updated lists of rugs which have sold and photographs of new additions to the inventory. The rugs in the Kamali booth, besides making a beautiful room setting, could be compared by dealers to the photos in the albums. A Tabriz in the booth had untouched white spots showing in a few places; this was deliberate so that a dealer wishing to work with Kamali could see typical condition of their rugs. Mr. Kamali explained that one area of communications which takes the longest to work out with a new retailer is a common understanding of condition terms, designs, and colors, for example, an agreement on what is peach, salmon, and apricot in a Serapi.

As the oriental rug business expands with new rugs, it would seem to follow that the demand for old rugs will also increase. The old rug wholesalers in Atlanta are among a small group who have inventories large enough not only to allow them to work with many retailers but also to offer a broad spectrum of old rugs from which to choose. Many retailers find they have to go to many small old rug wholealers to find one or two rugs they might need. A retailer working with one of these larger dealers has a good chance of finding several rugs he needs at one location.

It is doubtful that many of the retail dealers made it up to the fifth floor where the Mussallem's have a permanent showroom for its No-Muv underlays. One half of the space was devoted to a well-designed display of perhaps a dozen antique Persian and Caucasian rugs. As it was in the booths of the other old rug dealers, it was nice to see here the inspiration for most of the new rugs for sale on the first and second floors.