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Business of Home Podcast: Episode Summary
Episode Title
Studio Four's Stacy Waggoner on What Tariffs Have Revealed About High-End Fabric
Host
Dennis Scully
Guest
Stacy Waggoner, Founder of Studio Four
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Episode Overview In this episode, Dennis Scully interviews Stacy Waggoner, a veteran in the textile industry and founder of Studio Four. They discuss various topics, including the evolution of digitally printed textiles, what makes a line successful in her showroom, and the impact of tariffs on the fabric business.
Key Themes
- Background on Stacy Waggoner
- Formerly worked at Jack Lenor Larsen’s studio.
- Founded Studio Four in 2009, focusing on unique fabric collections from around the globe.
- The Rise of Digitally Printed Textiles
- Digital printing has changed the landscape of fabric design.
- Allows for intricate details and colors that traditional methods struggle to achieve.
- Stacy’s Perspective: Initially skeptical of digital printing but grew to appreciate its potential.
- Success Factors for Showroom Lines
- Effective communication with designers about product usability.
- Importance of samples in the U.S. market, which differs from European practices.
- Aesthetic quality and unique design are critical for attracting designers.
- Impact of Tariffs on the Fabric Business
- Tariffs have significantly affected pricing and fabric sourcing.
- Many imported textiles are now subject to increased tariffs due to geopolitical issues.
- Stacy's Strategy: Transparency with clients about tariff costs in quotations.
Detailed Insights
Background on Jack Lenor Larsen
- Innovative Influence: Known for connecting traditional weaving techniques with modern design, significantly impacting the textile industry.
- Educational Experience: Stacy describes her time as a master’s program in textiles that involved both technical and sales training.
The Evolution of Digital Printing
- Initial Skepticism: Stacy initially considered digital printing inferior but recognized its advancements over time.
- Artistic Collaboration: Studio Four collaborates with artists to create unique, digitally printed designs.
Tariffs and Their Consequences
- Challenges: Increased costs lead to concerns over product pricing and sourcing quality materials.
- Vendor Adaptations: Some companies pass tariff costs directly to consumers, while others absorb them into product prices.
Trends in the Textile Industry
- Consumer Behavior: There is a growing acceptance of higher prices due to tariffs, especially among affluent clients.
- Accessibility and Retail: Discussion about the balance between trade and retail pricing, and how online presence is opening doors to broader consumer access.
Final Thoughts
- Future Outlook: Despite challenges, the fabric and textile industry remains resilient. Waggoner emphasizes the importance of innovation and adapting to market demands, while maintaining quality and integrity in design.
- Industry Insights: The conversation also touches on the role of social media in shaping consumer engagement and the ongoing discussions surrounding the accessibility of design products.
Episode Links
- [Studio Four](https://studiofournyc.com/)
- [Dennis Scully on Instagram](https://www.instagram.com/dennisscully)
- [Business of Home](https://www.businessofhome.com)
Conclusion This episode provides valuable insight into the complexities of the textile industry, from artistic innovation to economic challenges. Stacy Waggoner's expertise and experience highlight the evolving landscape of fabric design, making it a must-listen for professionals in the interior design community.
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Special Thanks
Thanks to Ernesta for sponsoring this episode, promoting custom-sized rugs that simplify the design process.
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Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOStacey Wagner's Career Journey
0:45 to 1:44
Stacey shares her background and experiences in textiles and working with Jack Larson.
“what makes a line successful in her showroom, and the surprising truth tariffs have revealed about the fabric business.”
The Legacy of Jack Leonard Larson
1:59 to 4:03
Discussion about the impact and innovations of Jack Larson in the textile industry.
“So Christine's office was upstairs from Jacqueline Larson's headquarters at 41 East 11th Street.”
Starting Studio 4 Amidst Financial Crisis
4:03 to 7:40
Stacey recounts the challenges and decisions in starting Studio 4 during the financial crisis.
“Every year, we would have a big fall launch.”
Building Collections and Partnerships
7:40 to 10:40
Details on how Stacey built collections and established partnerships after launching Studio 4.
“And I worked for them very early and almost 10 years also.”
Digital Textiles and Industry Evolution
10:40 to 13:32
Stacey discusses the rise of digital printing and its reception in the textile industry.
“ourselves into getting the Florence Broadhurst collection of rugs.”
Digital Artistry in Fabric Design
14:00 to 15:00
Explore the intricacies of digital artwork in fabric production.
“So if you've got pristine artwork and your data is really tight, you can produce some really beautiful things digitally.”
Cost Dynamics of Screen Printing vs Digital
15:00 to 17:20
Understand the cost implications of different fabric printing methods.
“really convey layers and layers of color that you really couldn't do as a screen print.”
Sampling Practices in the U.S. vs Europe
17:20 to 19:00
Learn about the differing approaches to fabric sampling in design markets.
“But, you know, in reality, the whole idea of producing wallpapers and marketing them and sampling them and selling them and fulfilling them, it's a business.”
Challenges of Multi-Line Showrooms
19:00 to 20:40
Gain insights into the operational challenges faced by multi-line showrooms.
“They have all of these just amazing presentations.”
Managing Designer Expectations
20:40 to 23:00
Understand how to set realistic expectations for textile designers.
“And as you were just saying, prepare them for the reality of the sampling costs, but also help them understand what.”
Show all 23 chapters
Capacity Challenges for Showrooms
23:00 to 24:50
Discover how showrooms manage space and capacity for new lines.
“because I think that you can get a lot of really interesting innovative designs that if you had to look at something and say is everybody gonna do that ochre and gray thing, but no, that might be the one that hits.”
Innovations in Digital Printing
26:06 to 27:32
Explore how digital printing has evolved and its impact on fabric design.
“Okay, one of the first lines that we had from Australia was, it was called Edit.”
Comparative Techniques in Fabric Printing
27:32 to 28:00
Assess how various printing techniques highlight different design aspects.
“And once it sort of started hitting, you know, there were a lot of people, I think who, who were doing things like, oh, let me go get this antique textile and just take a photograph of it and, you know, print that.”
Exploring Fabric Printing Techniques
28:00 to 30:20
Learn about the various fabric printing techniques and their environmental impacts.
“It's obviously had this this big moment, but you look at some other ways of doing it and you're reminded of what they can do?”
Impact of Tariffs on Fabric Production
30:20 to 31:56
Understand how tariffs affect the fabric industry and production costs.
“Yeah, the linens we use in printing our fabrics, and virtually all of our vendors use too, is a Belgian linen because they make the best prepped for printing and clean, tight linen and most consistent and all that.”
Client Reactions to Tariff Changes
31:56 to 35:04
Discover how clients respond to tariff changes and increased costs.
“So there's a 25 % tariff baseline, but there are another 25 % punitive tariff because India is purchasing oil from Russia.”
The Resilience of the Industry
35:04 to 37:14
Examine how the fabric industry adapts to economic pressures and pricing challenges.
“I do think that some of our vendors that are overseas vendors that have multiple showrooms in the U.S., they had a lot of pushback from certain showrooms of theirs.”
Curating Unique Fabric Lines
37:14 to 39:49
Learn about the process of selecting and curating fabric lines for production.
“And if it's a broad-end company that's doing rugs, it's much more quick-ship.”
The Evolution of Wallpaper Trends
39:49 to 42:02
Explore the perception and trends surrounding wallpaper in interior design.
“of the people behind the lines because they're all small lines.”
The Timeless Appeal of Wallpaper
42:02 to 43:35
Explore the enduring popularity of wallpaper in design and its cultural significance.
“Most people send in digital representations of their work.”
Color Trends and Pantone's Influence
43:35 to 46:03
Discuss the implications of Pantone's Color of the Year and its market influence.
“When my subway caning fell off the wall.”
The Evolution of the Design Industry
46:03 to 48:38
Analyze changes in the design industry, including the role of AI and retail dynamics.
“But more importantly, I'm wondering, is it the last breath of this sort of ivory boucle tidal wave that we've been enduring for the last few years?”
Retail Challenges in the Design Sector
48:38 to 53:52
Examine the complexities of retail in the design business and consumer accessibility.
“can or will do for this business, and I don't see it yet.”
Transcript
Automatic transcript. May contain errors.0:03This is Business of Home. I'm your host, Dennis Scully. Every week I'll be speaking with leaders and innovators from all corners of the home industry. My guest this week is Stacey Wagner of the New York Fabric Showroom, Studio 4. A veteran of Jack Leonard Larson's legendary studio, Stacey has spent her entire career in textiles. Founded in 2009, Studio 4 is the culmination of her passion for fabric, an independent home for lines from around the world. loved by designers for its unique viewpoint. I spoke with Stacey about the rise of digitally printed textiles, what makes a line successful in her showroom, and the surprising truth tariffs have revealed about the fabric business.
1:02This podcast is sponsored by Ernesta. At Ernesta, there's a true belief in the transformative power of interior design. Founded with the desire to make getting the custom-sized rug easier, faster, and more affordable, Ernesta simplifies the process by hand-selecting quality materials and styles that appeal to nearly every sensibility, and delivering each rug in as little as two weeks. Join Ernesta's trade program to lay the foundation to your projects with ease. Apply for membership today at Ernesta.com slash B-O-H. I'm going to take you back in time because I was talking not too long ago with the incredible Christine Vanderherd.
1:53Right? I mean, one of the coolest creatives in the industry. Yes. And was reminded that you guys met all the way back when you were working for Jack Leonard Larson, right? I did. So Christine's office was upstairs from Jacqueline Larson's headquarters at 41 East 11th Street. Okay. And they would have joint warehouse sales. So one of the first, I guess probably the first time I met Christine was during one of the warehouse sales. And she owned, is it Modern Age? Yes. I think this was her company. Yes. These like cool, very cool furnitures. And I bought these very cool bent wood, kind of like the shape of the original Thonet chair.
2:39But they had these incredible back splats that were gilded and modern and cut out and all that. And I still have those in my head. Really? She came for dinner. Yeah. So she came for dinner the last time she was in town. and I've got the chairs in my living room and she just, you know, we had a moment about that. Well, and how great that you guys have been together. I mean, you weren't working together at the time, but years later, that's tremendous to have that relationship. Yeah, I really treasure the relationship with Christine. I think, you know, she has always been just such an icon of weaving and an amazing rug designer, but also she does these just like completely stunning prints and she does the embroidery that she does.
3:25I mean, it really is the whole package. And take me back to working with Jack Leonard Larson and let's remind people of what a huge figure Jack Leonard Larson was. Well, I think like Jack Larson was that good textile icon. I mean, he really was, you know, he was sort of the same era as Florence Noel Bassett and he was incredibly innovative. He had all these things that he would fly out of his mind in the studio, and they'd somehow produce it. And I worked for him for 10 years. The first 10 years, I was in New York. And it was like being in a textile master's program. Every year, we would have a big fall launch.
4:08So all of the sales teams from across the country, he would bring in everyone for a three-day weekend. And on the first night, we'd have a dinner, and they'd do a big, glamorous presentation of the whole collection. and everybody would clap and laugh. And then the next day, you'd start in on, okay, here are the technical aspects of it. This is what you need to know. Here's how it's made. Here's what the fiber, here's what the fiber does. Here's what it doesn't do. And then that was the technical aspects. And then the next thing was the sales aspects and how to sell it and who to sell it to and what it's for.
4:44And it really was so cool because, and that was super important because virtually every collection he had, there were like one or two or three things that you'd send out in the, in the workrooms would go, well, I don't know how to work with this. So they would send it back. We don't know how to make this. And it was a nightmare. And we're like, no, no, no. So we had to, we, as the sales team, first we had to convey all that to the interior designers and like this is how you use this and and then a lot of times we'd get on the phone with the workroom and just walk them through the process with it and and I think that was a just such a valuable experience and I mean I love to know how things are work how things work how things are made I love going to a factory I love I love seeing just the inner stuff well and and so So often with his textiles and his mastery of the intricacies of weaving, it's almost as though the product itself was so striking and interesting.
5:48But once you heard how incredibly challenging it was to even produce it, the fact that it existed at all somehow made it even more extraordinary. Yeah. I mean, he went around the world and saw these very traditional weaving programs happening in villages and things across Africa. And he would say, oh, let's produce this. And so we had this Swazi lace that was made in Swaziland. land and it was the looms were operated by men and they had this huge width because that's the arm span that they had of the of the loom so you could get six foot wide fabric that was this incredibly you know textured fabric he went to columbia and revived a weaving tradition there he was very um instrumental in bringing tie silks um to market because i think so i think he partnered with Jim Thompson and Ty Bok and eventually Jerry Pear.
6:44And I think that there's just so, he has such a place in history. And, you know, I mean, one of his first big commissions was like the theater curtains at the Ballet Folklorico in Mexico City. And it was just this like stunning, you know, mosaic of mylar and embroidery and all sorts of crazy things. Well, so you were with him, as you say, for 10 years. Yeah. So I left when, so Jack was retiring for kind of a long time, but I think he had. It took him a while to get off the stage. He was definitely still in the game. And then Counting and Tout purchased Larson and actually it was Colfax, I guess, Colfax and Fowler that encountered Taut and then Larson and Manuel Cannavoss and all these other amazing, amazing lines.
7:33and that's I figured that was time for me to go I just signed off then so I went to work for another multi-line showroom Tui Pranich and I guess he was opening the showroom in New York and had a bunch of lines that I had repped both at Larson and prior to that at David Sutherland which was my first job before moving to New York and then was there it was at Tui's for a little while and then went to AM Collections, which was a couple of guys doing amazing rugs. Amazing stuff. Yeah. Anthony Mott and Anthony Monaco. And I worked for them very early and almost 10 years also. And then the crash happened.
8:13Sadly, the great financial crisis arrived. Exactly. In 2008, it rolls around. And AM was sold to Stark. And they, thank goodness, because Stark really saved AM. But I didn't want to work for a company as large as Stark. So I decided that was about the time. I mean, I stayed until, you know, we transitioned a lot of things and then started Studio 4 with a partner. And we had a great, it was the, well, I guess I'd lost most of my 401k. I was calling it like a 201k at that point. Well, that's what I was wondering. I mean, really, I mean, the industry and it sounds like the business you were working with really dramatically impacted.
9:00And AM might have otherwise gone away were it not for the star acquisition, right? Yeah, exactly. So you and your partner decide, let's start a business. Yeah. So I cashed in the rest of my 401k, which is something I do not recommend, but it works. But you needed some working capital. And it was great. So you took a chance. Yeah. And honestly, it was a great time. We got a great deal on our space at the time. My landlord was making a deal. I'm in an amazing Stanford White building on 20th and Broadway. And when you start in the bottom of a depression, at least you're not comparing yourself to last year's sales.
9:40You're like, it's just all the way up. Exactly. Every number looks good. What we did, sales at all? Great. Exactly. Exactly. Wow, we made$300 this month. And in the early days, what did you have? What was the collection that you were bringing up? Well, we were very lucky. We had 22, which I know you've talked to Rob and Kira Hartnett about that. At the time, they were doing their own wallpaper line, but they weren't yet producing. And we had a lot of carpet and rugs. We still do a huge amount of rugs and textiles, but we're most known, I think, for our fabrics and wallpaper. ICFF happened like right before we were leaving AM and about to start.
10:24We knew we were going to do it. And so we went over to ICFF and literally took our AM collection business cards and scratched out the phone number and put in an email addresses and put in our personal Gmails and talked ourselves into getting the Florence Broadhurst collection of rugs. Oh, okay. So in Florence, at the time, it was a licensing thing for a company called Cadres, and they were wonderful. But it was, so she was such an iconic figure. And kind of, it was interesting because she and Jack Larson were kind of rising to fame around the same time. And she was doing things down in Australia before, you know, FedEx.
11:08And so all the things that Jack was doing here and David Hicks was doing in England. And it would take so long to get to Australia that she was sort of making up her own sunburnt versions of all of those. So we had the rugs. Somehow they were like, sure, we'll take a flyer on a couple of girls who don't even have a place of business yet. Or a card. But so we had those. And that actually opened us up to a lot of things. So we ended up carrying the wallpaper and fabric lines for Florence for a while. And that opened us up to a lot of wallpaper people. Because, I mean, she was having a moment. And there was a – I mean, she's been dead since the 70s.
11:56But there was a very resurgence of popularity and interest in her collection. There had been a movie about her life and death. and she was killed by a serial killer in Sydney. Oh, so there was a whole drama and a whole story behind it. Like, oh, Jane Campion made a movie about it. I mean, it's wild. Gotta go back in the archives for that. We'll have to look it up on that. I'll send you a link. So she was this very mysterious, kind of fabulous figure who kept reinventing herself. She was also, a lot of people that were producing wallpaper at the time really revered her. So it opened us up to a lot of Australian lines that we now carry.
12:41And then also some other cool wallpaper people around the world, they're like, oh, you have Lawrence Broadhurst. Well, okay, well, maybe you do want to look at my line. So I feel like it was the starting gate. But it was a fun start, and it was a really good grounding in wallpaper, and we've grown from that. Another one of our first lines was Eskayel. I know you've talked to Shannon. Yes, who I'm a huge fan of, yeah. Huge fan, huge fan. And she was kind of the first one to really successfully do kind of a kaleidoscopic digital thing. So I think she was really one of the first super strong digital producers.
13:21Well, and that's what I was so curious about, Stacey, because I was trying to pinpoint, and Shannon was one of the early people who was taking a flyer on digital printing at the time. When many in the industry look down their nose at the whole process, perhaps you included at the time. Oh, my gosh. I'm a textile snob from way back. I mean, you know, even before Larson, I was, you know, when I was at David Sutherland, I mean, we had, you know, Dongia and the Twigs and all of these like amazing textile lines. And, you know, digital wasn't even considered at the time. but right around the time right around 2009 2010 you know 2010 i think there was a lot of renewed interest in digital and honestly a whole lot of it and and still i mean it's how do i say this so so it's don't worry about being tactful here stay garbage in and garbage out there you go because it's you know it's it's a it's a photographic process so it's really as good is the Christmas of your file.
14:27So if you've got pristine artwork and your data is really tight, you can produce some really beautiful things digitally. And we work a lot, most our own collection, we've done a lot with artists. So Wayne Pate was our very first sort of arts collaboration. And we're on, I think, starting to think about collection five or might be six. But it's great for that because digital, you can get so detailed and you can really convey the brushstroke and you can really convey layers and layers of color that you really couldn't do as a screen print. If you were trying to do that in screen printing, I mean, imagine trying to screen 60 screens.
15:15Well, you couldn't. Is part of the reason why you're so closely tied to the financial crisis, was it an an innovative and less expensive way to produce? And is that part of what brought it about? Or what do you think led? It's a less expensive way to establish a design. Right. So when we do screen prints, every screen costs about$750. So if you have a five-screen piece that's, you know, it's over$5 ,000, you've got to be really sure that that is your exact design and the exact colors. So the startup of that and the setup and the expense of burning screens is a lot. Production-wise, screen printing is cheaper than digital.
16:03But in digital, you just have to have a good image, and you can print it if you've got a good piece. Now, I think the ease of that made a lot of people not really have to sit and edit what they were doing. I mean, so if you can plop out 32 colors of a shell design, you know, should you? Well, I mean, you were reminding me recently that in the early days, there was a lot of clip art. There was a lot of sort of, it was almost like novelty ties sort of look. It really was. To a lot of what was being done digitally. And that was part of why everybody didn't take it seriously in the early days. It's great that you can put all these birthday cakes in the wallpaper, right?
16:52But who wants all this birthday cake wallpaper? Yeah, unless you're specifically marketing to a bakery and how much effort is there in that? Right. And I mean, it really is. It's such a, the ability to produce it became so widespread that everybody could do. I mean, I kind of feel like there was a time that, you know, the people that a few years before were doing handbags or were doing jewelry or it was, I want to do something creative, so let me do this. But, you know, in reality, the whole idea of producing wallpapers and marketing them and sampling them and selling them and fulfilling them, it's a business.
17:38I mean, it's really, there's a lot more than just saying, oh, I like this design, it's pretty. Right. One of the things that I think that Studio 4 is really good at and I kind of pride ourselves on is that we have a really good with small lines that are kind of coming to the market. And I think a lot of that is like my background in dealing with so many different lines is I know where the pain points are. I know how much sampling we're going to need. It is impossible to overestimate the need for samples in the U.S. market. and a lot of overseas markets simply don't understand that. And they think, oh, well, you know, if I take the same yard and I can do, you know, 36 9x9 samples, but, you know, that means I could do 124 3x3 samples.
18:27You're like, no, nobody's going to look at a 3x3 samples and go, this would make great curtains. So is that part of what is so different in the U.S.? I mean, why are we sampling so much more than the Europeans seem to? and what's going on? It's a whole different model, I think, because in Europe and in England, you have these design shops that you go into, and you can go into Liberty and say, oh, here's this great fabric. Yes, that's what we want to buy. In the U.S., the designer takes things back to their office. They put together boards. They put together the project. They have all of these just amazing presentations.
19:11that they're putting together. And they're not necessarily bringing clients into the showrooms because, you know, I see it in here. We've got a lot of stuff in our showroom, and some designers love bringing their clients in. Some designers would never bring their clients in because it's kind of like, you know, magpies. Oh, squirrel! You know, it is very easy to get distracted. And the designer wants them to see one specific thing, and then suddenly a million things are catching their eye. Yeah. Right, and maybe that's a focus of multi-line showrooms because we do have so much and we're not one shop places.
19:44But I do love working with the small lines. Because, I mean, in larger showrooms, I think, you know, they'll have a mix of really big lines and really small lines. But when the really big line is expanding, they're like, oh, no, where are we going to put little line? Oh, let's go put them over in the back, you know, over down that aisle. And people are forever chasing tiny lines around a showroom and they're not getting the attention they deserve. Yeah. And I think here, I mean, I've got some lines that have 10 SKUs. Is that right? Yeah, they're adorable. Adorable. I don't mean that because I don't mean to diminish them.
20:18But they're like, the 10 SKUs are really great. And they deserve to have a place. They must be great for you to have taken them on in the first place. And I'm curious, to the point that you were just making, and this is what I think is so valuable about working with a multi-line showroom, is the advice and counsel and experience that you've had that you can share with these lines. And as you were just saying, prepare them for the reality of the sampling costs, but also help them understand what. What is going to help these lines to be successful in your mind? What do you look for? What do you try and tell them?
20:57If a designer is interested in a fabric, you know, you kind of have to look at the life of the project. So the designer may say, this is going to be terrific for the sofa in this living room. But the living room is going to wait to be purchased until all the components are in place or a majority of the components are in place. Or at least you're going to order the sofa before you order the fabric. So it could be six, eight months down the line in the project when the designer has known all along they were going to use the sofa. So I think to the designer, it's a line item, right? So it's a line item in a much bigger project.
21:33To the small textile designer who's so excited for that sales, it's kind of everything. So the managing the expectations of that. And also the lines take a little while to hit. I mean, they do. Sometimes there are things that just jump out. I mean, actually, I have to say this. I'm so excited about this. We just got our first order on our block print with samples have been out literally one week. Yeah. So that is really fast. And I am thrilled to death. It does take a really long time. And it sounds as though setting the expectations is such an important part of what you try and do with these lines.
22:16Yeah. And it's also, I mean, virtually everything we do is print to order. We have a few lines, well, except our current block print. We have a few lines that produce and hold some stock, a minimal amount, but almost everything is printed. And it's usually like four to six weeks lead time. I was talking with my friend Brad Bloom over at Pollock a couple of years ago. And I was like, Brad, it's practically in stock. Four to six weeks is nothing. And he laughed. but it's because we produce to order because it's digital you know the idea of carrying all this inventory and making these decisions on whether or not to discontinue a fabric there's a lower bar to entry in the into the marketplace and I think that that's healthy because I think that you can get a lot of really interesting innovative designs that if you had to look at something and say is everybody gonna do that ochre and gray thing, but no, that might be the one that hits.
23:17And for us, I can produce it because all I've got to store is the artwork. I'm still going to print it to order. And that brings me to the whole issue of whether or not you've seen any drop off in the enthusiasm of people to come out with a fabric or wallpaper collection, or if you feel like it's just as strong as it ever was. I actually, fortunately, multiple times a week, I'll have someone will reach out to us and say, hey, I'd love for you to take a look at my line. I think it might be a good fit. They're from England, they're from Australia, they're from across America. And I think it's really exciting.
23:58And I try very hard. I mean, I always look at everything that comes in and I try very hard to send a really quick response because, you know, it's, you know, a lot of people it's a cold call some people it's a oh hey you you know you represent my friend so and so um or x designer told me i should reach out to you or you know i love your website and i think we'd be a good fit or and i and i love that people think about it and look at it but but i also i have limited space here so i have to i have to really love a line and really think it can do well here enough to make room for it, really. Well, that's what I'm wondering.
24:38I mean, do you feel like really you're at capacity, but if a gray line comes along, oh, you'll find the space? Yeah. I mean, we always, and you know, there are things that like we've become more economical in the way that we display some other lines. So maybe we might've had a full drop of fabric in 10 colors, and maybe we decided to reduce that to five wings of, you know, half and half. So So there are ways that we can still squeeze a few more inches out of this showroom. But I don't want it to get so packed that you're like, you know, I went to Studio 4 and we had to, like, you know, fight our way through all the textiles.
25:16And, you know, we missed it. It was too much.
25:24We're taking a quick break from the show to remind you about Ernesta. Immerse your clients in elevated design with Ernesta's curated collection of custom-sized rugs. Explore a vast variety of options that work for your creative vision through complimentary unlimited samples, gain access to exclusive trade discounts, and receive personalized project support through Ernesta's dedicated team of consultants. To apply for membership to Ernesto's trade program or learn more, visit Ernesto.com slash B-O-H.
26:06getting back to digital printing and what i'm what i'm curious about is when did you first see something that really turned your head and made you rethink digital printing or or made you realize how far it had come and and that it was really going to have the impact that it's that it's clearly had. Okay, one of the first lines that we had from Australia was, it was called Edit. And there was a woman, Sharon Stoyer-Lynum, who had been the editor of Vogue Australia. And she had left publishing and started her, this textile line, and it was all digital. And it was like, she had this one photograph that it was, I mean, this one fabric that was like a photograph of like jewel boxes at a, like at a street fair, you know, just these jumbles of stones and gaudy brooches and all of this stuff.
27:06And it was fantastic. And it was so cool. We're like, wait, you made a fabric out of this? And then she had one that was like this topiary garden that maybe had like 35 different colors of green in it. And it was, and they were so beautiful and so crisp. And, you know, she knew a lot about photography and she really, she was the first one that I really thought, wow, this is a really cool process. So, um, that was in 2009. And once it sort of started hitting, you know, there were a lot of people, I think who, who were doing things like, oh, let me go get this antique textile and just take a photograph of it and, you know, print that.
27:47And it's not as simple as that. So do you think in a way that the that the digital printing makes make some of the other things like block printing, like some of the other different applications stand out even more? So great digital printing. It's obviously had this this big moment, but you look at some other ways of doing it and you're reminded of what they can do? What block printing can do? What screen printing can do? Yeah. I mean, I think it's an expanded toolbox. I mean, I think there's definitely room for all the processes and they all have different quirks and they all have different abilities.
28:28I think that as traditional screen printing uses quite a lot of water, so it's not the most environmentally friendly of all. they make great strides in digital there are some amazing new printers that use just tiny amounts of water and they set them in different ways our block printer as um she had the choice of using one of two facilities one is in um one of her facilities is in jaipur and one is in delhi and the one in delhi has a machine that basically bakes in the pigments and so she also uses very little water, which is great. Because, I mean, it's, you know, listen, I hope we're past the days when, you know, there's a street in Avignon that when they used to make all the robes for when the popes were in Avignon, they had all of these like really heavy purples and reds and all that.
29:23I mean, the street, the marble in the street was stained the color of these robes, these And it's like, oh my gosh, that's, and it's lasted for hundreds of years now. It's still there. Yeah. So we've cleaned up the process. Yeah, we've cleaned up a bit. So, and I think we keep making things that you can print to order. They are more eco-friendly because you're not sitting with hundreds of yards sitting on a shelf somewhere that might end up in landfill someday that you're printing what you need. Well, and also, exactly. And you don't have to write off a bunch of inventory over time because you don't have don't have that inventory.
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30:00And that was always the allure of the made to order, right? Right. Yeah. And I think that that's become such a smart business model, really. I mean, like when we print our own fabrics and wallpapers, we do inventory the print ground, but we just use it as needed. Yeah, yeah. No, no, no. And the print ground is unfortunately going to be our segue, Stacey, into tariffs and everything else that's been going on because you can produce domestically, but you're still having to import an awful lot in the process. Yeah, the linens we use in printing our fabrics, and virtually all of our vendors use too, is a Belgian linen because they make the best prepped for printing and clean, tight linen and most consistent and all that.
30:54But so we don't make linen here in the U.S. that's going to be the quality that you need to be able to print 300 yards. And so we have to print. So even things that we print here are on imported grounds. And I can say we have two carpet lines, one that does synthetics and one that is a hand-woven wool that are produced in the U.S. and virtually every fabric line that we have that produces in the U.S. is produced on imported goods. So what has been the impact of the tariffs? What has been the impact even of the de minimis changes that have happened, which is a huge thing? Yeah, that's hit us really hard because we're used to being able to bring under$800 worth of goods in and now we're getting hit with, I mean, everything has a tariff.
31:49we pass it along to our vendors we may i mean to our clients we we have a line item on our quotes and we say this is the tariff this is the cost of the fabric at this point some of our fabric lines are starting to roll the tariff into the price of their goods so i don't love that because it's an increase and i don't think that price increases ever go away you know i think but i think like one one of the things with tariff right now that's particularly onerous on india is that they're stacking the tariffs. So there's a 25 % tariff baseline, but there are another 25 % punitive tariff because India is purchasing oil from Russia.
32:28Right. So world geopolitics really get involved with my little business here, you know? Well, and you told me recently that rugs have become a huge percentage of your business. Oh, yeah. Rugs are over 50 % of our business. Really? Over 50 % of our income. The number of sales is higher in fabric and wallpaper, but of course those are less. But the rugs are, and the rugs are, you know, the lead times are astronomical. So, I mean, some of the things that we quoted last year pre-tariffs, I mean, we had to reach out to all of our clients earlier this year and say, hey, when that rug crosses the border, that's when it's going to get tariffed and there will be an extra charge and we'll have to charge you.
33:12And right now we don't know what it will be. We have to wait. Exactly. Until it gets here and then you get assessed whatever the fee is. We got a certain amount of pushback on that, but not a ton. I mean, our clients understand it. They read the newspapers. They understand what's going on. And it's affecting every aspect of it, though. I think that originally it had a little bit of a shocking freeze effect on our business. But I think that our clients mostly have said, okay, it is what it is. Well, and that's what I'm wondering, Stacey, because, and I'm so glad that you said that, because I'm wondering when you talk to all of your partners on the production side, are they just starting to assume that this is just going to be hanging around for a while and this is just part of doing business?
34:01Yes, and I think that that's why a lot of people are going to start to roll those into their prices. We have more of our overseas lines quoting us a DDP, which is Deliver Duties Paid, which means that they ship from England or Australia or wherever they are, and they are covering the charges for importing it into the U.S. So they are paying it, but they're rolling it into the price. so we're at about we have a higher number of those doing that I still prefer that they leave the prices alone and just let us charge the tariff line just so the fabric's not astronomically more expensive but I do think that people have gotten I don't know complacent about it but I do I think there's less price sensitivity than there might be in other sectors.
35:01I mean, certainly at the grocery stores. I mean, I just went and bought some wine that I was like, oh no! Yeah, go buy a steak. Exactly. I mean, it's rough. It's all more expensive. I do think that some of our vendors that are overseas vendors that have multiple showrooms in the U.S., they had a lot of pushback from certain showrooms of theirs. and so they kind of got scared. I think the showrooms were like, well, nobody's going to buy them if you're going to charge this. I'm like, yeah, they will, you know, because what else are they going to get? I don't mean to be callous. I don't, that sounds really.
35:38No, no, I am borderline amazed about the resiliency of the industry in the face of all of these price increases and so many people tell me, well, that's what the client wants and the client has the means and the client that we are servicing is not this isn't they're not going to be cutting back on their groceries they're not exactly pinching pennies rug from this custom rug from india uh so but but i but i i hate to think to your point of just even the perception being that the industry is so expensive or that all these things are so rarefied in that in that way when part of what was so exciting about digital printing was that things might be somehow more accessible in that way and these things wouldn't be as expensive.
36:27And now it is. Yeah, and I think that's a really valid point. And we look at things like, because we started Studio 4 in 2009, we've kind of always made an effort to try to have a mix of high-low. I mean, look, if you want a hand-knotted silk rug from Nepal, yay! And we do a lot of those. I mean, we do. And that's not something you can make in America. You just can't. But we also have been really intentional about coupling that with, here are some great broadleams that have a very handmade look. I mean, some of the big broadleam producers have done a fantastic job over the last 10 years at having their carpets not look so much like carpets as like rugs.
37:15And if it's a broad-end company that's doing rugs, it's much more quick-ship. Then, you know, my Nepalese rugs are usually about five to six monthly time. And we produce rugs in India that are about the same. I've produced a lot of rugs in China. We have one particular manufacturer there that I love working with. And I'm anxious to get back to work now that I think the tariff isn't quite as heart-stopping as it once was. It's still pretty, you know, pretty high, but it's not as, you know. Do you think we all have Stockholm syndrome now? We're just, right? We're just become numb to it. Oh, tariff.
37:54Yes. Oh, look at that. I'm sure I'll pay that. 50 % on India. Oh, listen. Oh, my gosh. I mean. It really is. I mean. No, no. That's real. That is huge. Yeah. Yeah. Yeah. But somehow, as I say, somehow people are figuring it out. And to your point, either they're including it in their price or they're putting this line item or some people sound like they're getting creative back of house and making it a design fee or something. I don't know. A lot of people tell me innovative ways that they're that they're trying to get around it. And I think more and more, again, people think at least for as long as the president, the current administration is in office, tariffs don't seem like they're going they're going away.
38:36So everyone is having to figure it out. And yet remarkably, again, people tell me it's been a pretty good year despite all that. It actually, I mean, it's surprisingly, it has been, you know, we're ahead of last year. Is that right? Yeah. I mean, not by leaps and bounds, but I think we have, we are, we're up. Yeah. So I am knock on wood for that. Exactly. Exactly. And so you wonder what you think, with all your years of experience, what would you say is the through line with all of the different lines that you've brought in? If somebody says, what am I going to find at Studio 4, what is it about how you've edited and curated the collection that you have?
39:23I spend a lot of time trying to think about a really good answer for that. And most of it is when a line shows up, I think it's, I have to like it. My partner, David has to like it. And we both come from different viewpoints. His is more interior design heavy, mine is more textile production heavy. So we're forever like, you know, laughing at color choices or design choices or things like that. But there has to be something in common that we both like, that we're both get a sense of the people behind the lines because they're all small lines. And so there is a personality behind every line that we have.
39:59I don't know. I guess there's a sense that like the creator believes in their line. And I mean, I think that goes a little bit back to how easy it is to do, you know, 32 birthday cakes in, you know, 15 different colors. You know, that type of art is not what's compelling me. I don't want somebody who goes and finds an antique textile and photographs it and says, here's a design. You can certainly take elements of antique textiles. Everybody does that. It's fantastic. You can find inspiration, but inspiration and copying, two different things. Exactly. Yeah, yeah. No, no. Exactly. And I think that's such a great point.
40:36I think Thomas Pheasant was making that point just recently to me on the show. He said he's so smart. Yes, inspiration. Let's talk about that word and what it really means because it doesn't mean what many people seem to think it means these days in terms of just knocking things off. But, and I think it's so, I think it's so interesting that I'm sure lots of lines that you see must feel very derivative. They must feel like, oh, I feel like I've seen this before. Well, I mean, I think a lot of people, like people will send in something and they're like, oh, well, you have Eskayel. So I think my line would be a really good fit for you.
41:14And, and I think, well, I already have what I think is the best of that particular genre. so I don't know that I would need your, you know. So, yeah, there's inspiration, there's reverence, but there are people that are doing it. Look, like there's some interior designers who have ended up with lines. Sometimes I think that the designers that do tend to be safer because I think they think, oh, this would be a great line in the D &D building or something like that. And there are lots and lots of great lines that would be great in the D &D building. And I don't think that that's really our vibe.
41:52I think we're a little bit more, you know, I don't think edgy is the right word, but it's, to me, there has to be something compelling about every line. So it has to, and it has to kind of jump. Most people send in digital representations of their work. So it really has to jump off the computer screen at me to say, oh, yeah, I'd like to see some samples of this. So I wonder, Stacey, as we as wrapping up, one of the things that's that's often talked about in our industry is this notion that wallpaper comes in and out of of fashion. You and I were talking recently about watching all of these great British police procedurals and all the all the distracting, great wallpaper that just seem to be in what often are the most ordinary of homes.
42:38but they somehow have this incredible wallpaper in them nonetheless. I feel like, is it really the case that wallpaper goes in and out of? I don't think so. It's funny because ever since we've, since starting Studio 4 in 2009, people would say, people always say to me, oh, is wallpaper back in? I'm like, still, yeah, it's still here. I mean, I know that Pantone just claimed white walls are all the thing, but I don't buy it. but I do like, I think wallpaper has always really had an effect, but I do, I do think the British do it really well. I think, I think that I, we, we did a post one a while back that was like, I can't remember who titled it murder rooms or walls to die for or something like that, because there's like noticing how many, you know, police procedurals in England all had great wallpaper.
43:31It's like, I think there it's, it's, there's something something really compelling about wallpaper i think it it's the the ability to change a room entirely well and and the british often often tell me that the part of the reason you're seeing so much of that too is that there's just easier access to it in the uk right that it's just a lot more available to the average person and they do go down to the high street and just pick up some rolls of wallpaper and i guess the neighbor puts it up for them or something i don't know but i think also wallpaper has this thing of um it has like an inherent diy aspect of it now i do not recommend you go hang your own wallpaper i will not be hanging my own i have done it and i do not want to begin this is one of those things you want to hire someone for but i do think that people would look at a bolt of fabric and go well i'm never going to upholster my own chair right but i might wallpaper my bathroom yeah um so i i do think that that makes it a more um uh personal and tactile and approachable media for stuff but you know it's a good lesson in frustration to try to hang on wallpaper it's a it's a very humbling it's a very humbling experience uh having attempted it myself years ago it's a very that will that will show you skills you definitely do not have uh oh definitely definitely very quickly uh and getting that glue out of my hair wasn't easy either, but let's not revisit that time.
44:55When my subway caning fell off the wall. Oh, well, that's the other thing. And the guests noticed, who hung this wallpaper? It seems to be some bubbles or something. Don't look too closely. So listen, Stacey, you mentioned that you were just listening to the podcast. And so, of course, you heard the conversation about the exciting Pantone color of the year, Cloud Dancer. I mean, the industry just cannot stop talking about it. I'm wondering, A, do you have a hot take on the whole thing? I would say paint those walls with Cloud Dancer and then cover them up with wallpaper. Use Cloud Dancer as your primer.
45:38Exactly. Yeah, that is a great primer. Glad they recommended it. And slap some wallpaper up. I think that is a darn good answer. Is is anybody taking direction from the Pantone color of the year? Because some people were worried, oh, my gosh, this is a recession indicator. This message is terrible. I didn't I didn't take it that way myself, but I'm but I'm curious. But more importantly, I'm wondering, is it the last breath of this sort of ivory boucle tidal wave that we've been enduring for the last few years? And is that it? We're done now, and that's on the decline. And boucle itself can shine in other ways.
46:26Yeah. Right? Chanel suit. There you go. I mean, come on. Your mom wears boucle. And look at her. She's a social media star. She is a social media star. Follow her now. I do. I love her. Take after Nancy Scully. Exactly. But I mean, what do we really think? I mean, the whole white thing and have we seen Ivory Boucle on the decline? Do any of your lines show up? I think so. You know, because we don't do any furniture, I can't get over how much furniture is covered in Ivory Boucle in showrooms. and I remember going to the flea market in Paris a couple of years ago and I looked at it and I was like, every stand has an ivory boucle.
47:07So I was like, what is it? But I mean, I think it's, you know, I think it's chic, but I think, you know, God, people live with some color. I love color. I love color prints. I love solid colors. I love, I think it's really luxurious to wrap yourself in a bunch of color. Yeah. You know, and I would like to think that I could be this minimalist person that had, you know, lived in a glass-walled place with nothing but white boucle and blonde wood. But, yeah, it's not me. I can't do it, you know? I want layers and layers and layers of design and color, and it all goes together, and it's all weird and wonderful.
47:44And someone told me one time that my – they thought my apartment looked like an explosion at the souk. It's like – I took it as a compliment. And you said thank you very much. I did. I love that explosion of the souk. That is hilarious. Finally, Stacey, in talking to Dan Cahoon just recently from Jerry Pear, we were reflecting on the fact that honestly, not that much has really changed in this industry after all of these years. Does anything seem to have evolved in some dramatic way? Or do you see meaningful changes? Do you see AI showing up and playing a transformative role? Or does there seem to be anything that points to how the industry will be different in the coming years in your mind?
48:37I keep trying to figure out what AI can or will do for this business, and I don't see it yet. I don't know that. I think it's still sort of such an old-fashioned thing. I mean, I think AI could help us in systems and making things more expedient, but I don't necessarily see it affecting how we design, how we produce collections, how we market. I mean, maybe how we market. But I do think that one of the things that is a little bit interesting is that we do a little bit of retail. We do very limited retail, but we will quote a retail price. I mean, I think back to your Michael Phillips is talking today about how the differences in retail in the UK market and in the European market, how it's a little more accessible than it is here.
49:28And I think that going more toward that is probably happening. When we started Studio 4, we offered retail pricing on some wallpapers and fabrics simply because at that time, you know, it was everybody was doing wallpapers. And there were all these little online wallpaper people that were doing it. And we thought, well, gosh, if somebody's selling this same line online, then we might as well sell retail as well. we have very very little um emphasis in it but we but i had to think because you know my background was like it's church and state retail and trade and we spent a lot of time talking to a lot of important designers and we said this is our take on it and it's the same thing that you do with antique stores here like so maybe everybody can walk in an antique store and but the trade gets a better price and i think that that's that was our thing so we're not undercutting the trade we're not um you know retail retail people can't get it for less the retail but people can't get it for the same price um we're protecting trade and we you know we do that in there and we don't do any custom pieces um like i won't sell a custom rug retail but i'll if i have a rug sitting here on my floor and someone can take it away, I'll sell that retail.
50:49But it doesn't really happen much. I mean, we have very, very limited retail. We do maybe our pillows. We have pillows of virtually everything. So. Yeah. And so many people say, oh, why doesn't everyone just have more pillows and more cash and carry items? I mean, it's so interesting that you say that. And I and Timur Umasaklar from Schumacher so often talks about reaching all these homeowners and trying to get them excited about the product. And then ultimately, how do you service them? There does seem to be this huge opportunity. And how do we somehow crack the code on making it work for the industry?
51:27Yeah, and I think that social media has a part in that because I think when people follow on social media, they want to see, like, where can I find this Christine Vanderherd pillow or something like that? And so my take on pillows is it's a great, it's kind of another display option in our showroom. So we have lots of pillows in the showroom, but we don't actively, I mean, we have a section on our website, but we're not actually actively pushing the pillows for the most part. But a lot of that is that I don't want to get into a pillow making. All right. Because it's a lot, it's, it may take eat up a lot of sales time that I would rather be spent, you know, working toward a more expensive sale.
52:12But I think we do have some clever designs that have come in in pillows, and we do have people taking them out all the time. You know, Peter Dunham does a gorgeous job with his pillows. I don't know if his showroom at the D &D, I mean, at the 200 Lex, it's just, I mean, I'm - You can't help but want to walk out with some pillows. I want to walk out with every pillow. I know, I know. He's so talented. So I think that's really great. And, you know, we don't have a lot of cash and carry things. We don't sell accessories. We don't sell little cigarette tables or, you know, drink tables or whatever.
52:47We don't sell breakable things. Yeah, no, no. I mean, the whole pillow slash cash and carry is an interesting challenge. And I feel like part of the reason that Schumacher, just to go back to them, why they're opening up these what feel much more like little shops in some of these interesting markets where they're experimenting with candles and pillows and all of that. Zebra note cards. Yeah. And I just think it's a way into the brand and people get to walk out with it. And then does it plant the seed for what they want in the future when they're ready for that hand-knotted rug from Nepal? I mean, maybe.
53:28Maybe so. Right? I know. I think that's one of the things that is worth exploring. And I think our website will help us a little bit with that. I mean, Michael Phillips is encouraging us all to be more open to the end consumer. and perhaps that's an important message. Yeah, it's never going to be our main course of business, but, you know, listen, if somebody wants to buy our things retail, yes. Okay, well, we'll let that be the last word then. Okay. Stacey, thank you so much for making the time. Oh, Dennis, thank you. What fun. I appreciate it so much. Thanks for listening. If you'd like to keep up with the latest design industry news, visit us online at businessofhome.com, where you can sign up for our newsletter, browse job listings, and join our BOH Insider community for access to online workshops, a free print subscription, and much more.
54:20If you have a note for the podcast, drop us a line at podcast at businessofhome.com. If you're enjoying these conversations, please leave us a review on Apple Podcasts. It helps others to discover the show. This show was produced by Fred Nikolaos and edited by Michael Castaneda. I'm Dennis Scully. Thanks again for listening. and I'll see you next week.
From the publisher
A veteran of Jack Lenor Larsen’s legendary studio, Stacy Waggoner has spent her entire career in textiles. Founded in 2009, Studio Four is the culmination of her passion for fabric: An independent home for lines from around the world, loved by designers for its unique viewpoint. On this episode of the podcast, Waggoner speaks with host Dennis Scully about the rise of digitally printed textiles, what makes a line successful in her showroom, and the surprising truth tariffs have revealed about the fabric business.
This episode is sponsored by Ernesta
