Intertex Draws From Turkey, En Route to $15M-30M Business
October 4, 2005
WINSTON, North Carolina — A fledgling American textile importer expects to triple its business this year by placing Turkish-made fabrics with clients in the hospitality industry.
In 2005, Intertex Group will bring in $1 million worth of fabric that is destined to be made into drapery, curtains, bedspreads and upholstery. George Ladner, managing partner, has an eye on building the Charlotte, North Carolina-based firm's business to $15 or $30 million in the next five years.
A constellation of global and domestic market conditions drives the company's outlook.
Across the board, America's imports of Turkish fabrics are climbing. In 2004, the U.S. imported $138 million worth of fabric from Turkey, a nine percent increase over the $127 million worth of fabric that was imported in 2003, according to the U.S. Dept. of Commerce. With the removal of import quotas in January, as per the World Trade Organization agreement, more increases can be expected.
At the same time, industry research paints a brighter picture for the U.S. hospitality market this year than in previous years. Slow growth in room supply since 2001 has helped demand to catch up, resulting in a 4.8 percent increase in room nights sold last year, according to Ernst & Young's 2005 National Lodging Report. Additionally, average room rates are expected to increase four percent to $90 in 2005, according to the report.
Meanwhile, across the globe, anecdotal reports indicate that the Turks continue to improve their delivery times and qualities.
Plans to bolster Turkish imports form the nucleus of Intertex's growth strategy.
"Turkish mills are very style-conscious," Ladner said, noting that the company's imports are trending toward more decorative looks. "They know they have to move that way. Ten years ago, they were more commodity-based, but they have evolved into being more style-conscious.
"There is a lot of interest in slightly more decorative sheers," he said. "Obviously plain batistes and plain voiles are the bread-and-butter of marketplace. But there is a lot of demand for more decorative products, like organzas, decorative voiles, knit products, and a lot of taffeta, too."
Intertex imports fabric by the roll and sells to distributors, who, in turn, sell to fabricators or hotel purchasing groups. The two-year-old company has forged relationships with seven Turkish mills, and it sells to five clients in the U.S. Sales to the hospitality sector account for about 80 of the company's business. Intertex also sells to the cruise and office industries.
As the company grows, however, both its products and list of source countries will increase, Ladner said.
"It wasn't our plan to bring in finished goods, but we may in the next year or so," he said, suggesting that readymade bedspreads may be the first of the company's finished offerings to its customers.
U.S. imports of Turkish fabric made-ups increased 17.9% to about $387 million in 2004 from about $330 in 2003, according to the U.S. Commerce Dept.
"It's a trend, and we're not forcing it, but the market is moving in that direction."
Finished draperies would be more difficult to import given the varying sizes of windows. Intertex has begun to import from China--"a direct result of the removal of quotas," Ladner said. The company plans to begin sourcing from India sometime next year, and then Pakistan.
"I'm spending a lot of time establishing and maintaining relationships with the mills. It's like any business: You have to build trust and confidence. What I've decided to do--and I'll be copying this format as we add other sourcing places--I'll place an employee or corresponding agent who works there. I have had people in Slovenia and Istanbul for the last two years. They know what's going on between Intertex and the customers, but I don't bring them into the transactions unless something goes awry. I have somebody in China, too. When I do it in India and Pakistan, I will also."
Intertex has offices in Istanbul; Beijing; Ljubljana, Slovenia; and New York.
In 2005, Intertex Group will bring in $1 million worth of fabric that is destined to be made into drapery, curtains, bedspreads and upholstery. George Ladner, managing partner, has an eye on building the Charlotte, North Carolina-based firm's business to $15 or $30 million in the next five years.
A constellation of global and domestic market conditions drives the company's outlook.
Across the board, America's imports of Turkish fabrics are climbing. In 2004, the U.S. imported $138 million worth of fabric from Turkey, a nine percent increase over the $127 million worth of fabric that was imported in 2003, according to the U.S. Dept. of Commerce. With the removal of import quotas in January, as per the World Trade Organization agreement, more increases can be expected.
At the same time, industry research paints a brighter picture for the U.S. hospitality market this year than in previous years. Slow growth in room supply since 2001 has helped demand to catch up, resulting in a 4.8 percent increase in room nights sold last year, according to Ernst & Young's 2005 National Lodging Report. Additionally, average room rates are expected to increase four percent to $90 in 2005, according to the report.
Meanwhile, across the globe, anecdotal reports indicate that the Turks continue to improve their delivery times and qualities.
Plans to bolster Turkish imports form the nucleus of Intertex's growth strategy.
"Turkish mills are very style-conscious," Ladner said, noting that the company's imports are trending toward more decorative looks. "They know they have to move that way. Ten years ago, they were more commodity-based, but they have evolved into being more style-conscious.
"There is a lot of interest in slightly more decorative sheers," he said. "Obviously plain batistes and plain voiles are the bread-and-butter of marketplace. But there is a lot of demand for more decorative products, like organzas, decorative voiles, knit products, and a lot of taffeta, too."
Intertex imports fabric by the roll and sells to distributors, who, in turn, sell to fabricators or hotel purchasing groups. The two-year-old company has forged relationships with seven Turkish mills, and it sells to five clients in the U.S. Sales to the hospitality sector account for about 80 of the company's business. Intertex also sells to the cruise and office industries.
As the company grows, however, both its products and list of source countries will increase, Ladner said.
"It wasn't our plan to bring in finished goods, but we may in the next year or so," he said, suggesting that readymade bedspreads may be the first of the company's finished offerings to its customers.
U.S. imports of Turkish fabric made-ups increased 17.9% to about $387 million in 2004 from about $330 in 2003, according to the U.S. Commerce Dept.
"It's a trend, and we're not forcing it, but the market is moving in that direction."
Finished draperies would be more difficult to import given the varying sizes of windows. Intertex has begun to import from China--"a direct result of the removal of quotas," Ladner said. The company plans to begin sourcing from India sometime next year, and then Pakistan.
"I'm spending a lot of time establishing and maintaining relationships with the mills. It's like any business: You have to build trust and confidence. What I've decided to do--and I'll be copying this format as we add other sourcing places--I'll place an employee or corresponding agent who works there. I have had people in Slovenia and Istanbul for the last two years. They know what's going on between Intertex and the customers, but I don't bring them into the transactions unless something goes awry. I have somebody in China, too. When I do it in India and Pakistan, I will also."
Intertex has offices in Istanbul; Beijing; Ljubljana, Slovenia; and New York.
