I just want to share my forecast for my rug business in 2011 with you. I will expect a slow and long recovery. The meltdown of housing market and growing unemployment caused young adults to stay with their parents longer and this meant lower and weaker demand for furniture and rugs.
Having gone through a tough 2010 has taught me that working smarter, having strategies, being methodological, studying customer behaviors and paying attention to what my clients are shopping for really works for me and for my rug business in the very competitive Los Angeles rug market.
I believe that economic growth is moving in the right and more positive direction today, but it will take some time before we see people are spending like Americans again. Therefore, I should take positive actions, and commit myself to change. I will sell value over price, and will focus on driving more traffic, lowering store costs where possible and building trust and closer relationships with my clients. I should try harder to provide more value for my customers. That is what they are looking for in tough times.
I will be watching new home construction and renovation rates nationally and in California, corporate vacancy rates and unemployment statistics. These will be meaningful indexes and indicators of how the market will move. These will give me the right road map for my rug business journey!