BEIRUT, Lebanon – Wardē, one of the top five wholesalers in the Middle East today, expanded decorative fabric, wallpaper and trim sales to $41 million last year, by franchising its collection concept throughout the Middle East.

The company has five company-owned outlets in Lebanon. In addition, CEO and owner Andrē Wardē, said Saudi Arabia, Qatar and Jordan are his three best export markets today. About 40 percent of Wardē's export sales are to Saudi Arabia alone. Other outlets are based in Egypt, Kuwait, Dubai and Syria with more on the way. In addition to domestic residential sales to architects and designers in Lebanon, Wardē has had success in the past five years with export. Franchisees account for 30 percent of Wardē's business today. "We give service," said Andrē. "We're a seller of fabric though, not confection." In the future, Andrē wishes to reach everyone in the Arab world with the best fabrics available.

Although Wardē said it had a 28 percent sales increase in 2008, this may be hard to do again, the third generation owner said. "2009 is hard to project but we are hoping for a 10 percent increase," he said "We do more residential than anything else." Although it is not a prerequisite to have FR product in Lebanon, Wardē still represents FR One® in Beirut on an exclusive basis.

"There's more money in residential than contract for us," he said. "With residential, we get paid by the customer right away. Hotels pay the best for marble and bathrooms. When you talk about fabric, hotels squeeze the fabric supplier. That's not our business."

The company stands almost alone in the Middle East by focusing on medium to high-end European ranges with high-end lines like Rubelli, Donghia, Beacon Hill, Romo, S. Harris and JAB. "Our franchisees sell from samples and don't hold stock," he said. "They rely on weekly deliveries from our warehouse in Beirut from our $20 million inventory." Another growing area for the firm is in its wall coverings from Texdecor, Elitis and Gran Décor (of France) and Harlequin (from the UK). About 90 percent of his business is in fabric with five percent each for wallpaper and trimming. Castellano Beltrame of South Africa is Wardē's key trimming line.

The company was founded in Beirut in 1881 by Khalil Wardē, Andrē's grandfather. Since 1982, Andrē has been going "non-stop," building his business, and he is hopeful that his oldest son will continue in the business later on. He also has twin boys in high school as well as two daughters.

During the time of Andrē's reign over the company, he says the market has turned upside down, especially in regards to the Heimtextil, Frankfurt annual trade fair. "The level of product is down," he said. "Some major players are not there. Sixteen years ago, all of the Europeans and American suppliers were exhibitors at Heimtextil. Now, there are more Indians and Chinese exhibitors and the Europeans and some Americans are showing in hotel rooms surrounding Heimtextil."

He cites Bru Textiles as an example of one of his suppliers which shows in hotel rooms during the fairs. Bru is the Belgium-based converter with sales in the $100 million range. "Bru is showing basic fabrics with good quality-control testing," he said. Andrē also noted that Vay, the Italian converter, has taken a page out of the Bru book by also showing basic product with more emphasis on sheers than upholstery in his opinion. "I like the one piece minimums offered by Bru," he said. "It gives us flexibility – more colors with less inventory. Vay is doing the same thing but at a lower price point than Bru." Vay is a regular exhibitor at Heimtextil and was at Decosit last year for the first time.

"I remember years ago that when we ordered from a fine silk mill in the Caserte region of Italy, we would beg to buy 100 meters and were told we had to buy 240 meters," Andrē explained. "Now, the supplier has a stock service where we can buy 30 meters. The world has certainly changed."

"Indian silk mills are producing high-end jacquards previously produced by Italian firms. European mills are going to Thailand, Turkey and China to produce product and becoming converters. Still, there some Italian mills at the top end which are becoming more important to Wardē." Detoffe for example is one of those and Detoffe velvets are selling well at Wardē, Andrē said. "Today, the Italians are still the ones creating the new colors, materials, fibers and designs. The Italians are the creators." Wardē said he has had bad experiences with the Chinese suppliers so he doesn't bother with them anymore. "I don't need the trouble with wrong colors from China – European quality is better." He also buys from Penelope and Vanelli in Turkey.