THE MOST BEAUTIFUL RUG
RugMark’s Campaign to End Child Labor
The Most Beautiful Rug campaign takes people beyond the exterior of a hand
woven carpet and invites them to see an inner beauty. The beauty of knowing
their rug was made by adult artisans and that its purchase will help former or
at-risk child laborers. This beauty is conveyed with the RugMark® affixed on
the underside of the carpet.
Launched in 2006, The Most Beautiful Rug is a three-year national consumer
awareness campaign initially focusing in New York and San Francisco, the most important
markets for handmade rugs in this country.
The goal is to ensure that everyone who sets out to buy a hand woven rug is informed of child
labor in carpet weaving and the RugMark option – whether it’s from an interior designer, a trade
magazine, the RugMark website, a poster in the showroom, or the actual salesperson.
The target audience is high-end consumers, as well as interior designers and architects who
influence rug-purchasing decisions. The strategy includes ad and media placements in
publications with a corresponding demographic; participation in trade, consumer and RugMarkspecific events; the development and distribution of point-of-sale materials; and a consumeroriented website.
With this campaign, RugMark is increasing the market share of RugMark certified rugs to 7
percent and ultimately to 15 percent, the estimated tipping point to wipe out child labor from the
handmade rug industry in South Asia. Market share growth represents children emancipated from
servitude, consumer sensitivity toward humanitarian issues, and companies employing adult
weavers and a fair system of trade – a market transformation.
MEASURING RESULTS
In May, RugMark had a period of evaluation of The Most Beautiful Rug campaign, now in its first
full year. We took a step back to review the effectiveness of campaign materials, evaluate traction
in the key geographic and demographic categories, and track trends more broadly between 20042006. Below are some of the key findings relating to market growth, awareness of RugMark, and
the campaign’s social impact.
Market Growth
At the end of 2006, RugMark certified rugs comprised approximately 2 percent of the total
market share of US handmade rug imports. This represents 24% growth from the previous year
and a 64% increase since 2004.
The number of industry members participating in RugMark’s certification program doubled
between 2004 and 2006. Now, anytime one of these companies sells a RugMark certified rug, a
portion of the proceeds goes back to support children’s rehabilitation and education in South
Asia. Today, RugMark certifies 27% of the total imported rugs from Nepal to the U.S.
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Market Share as % of Total Import Value
and in Millions of US$*
Market Share as % of Total Import Value,
by Country*
Nepal
1.8%
2.0%
1.5%
20%
64%
increase
1.0%
$5.7
10%
India
0.0%
India
Pakistan
0.2%
2004
27%
Nepal
22%
$8.9
1.1%
0.5%
30%
Pakistan
1.4%
0%
0%
0%
2006
2004
* Total Import Value is defined as US$500 million and represents
the imports of all handmade rugs from all countries. Imports
from South Asia represent approximately 50% of all imports.
2006
* Total Import Value for India estimated at $150 million. Total Import
Value for Nepal estimated at $25 million (Source for Nepal data:
Nepal Carpet and Wool Board)
Awareness
Awareness about RugMark and child
labor in rug-weaving has increased. The
number of RugMark’s ad and media
placements nearly doubled in the past
two years. A snapshot of web traffic in
February 2006 versus February 2007
shows a 96% increase and this is directly
linked to the sharp increase in
placements.
Average Daily Website Hits
% Increase = 96%
803
900
600
410
300
0
Feb 2006
Feb 2007
Not only are there twice as many visitors
to the reconstructed www.RugMark.org, but three-quarters come from the campaign’s target
audience. While on site, 77% are visiting the most important pages including “how to purchase a
rug” or links to industry partners. In other words, the right people are there for the right reasons.
Website Visits by Target Audience
Website Visits by Target Audience
(Based on Respondent Category)
(Based on Respondent Household Incom e)
Other
Visitors
28%
Target Audience
Visitors
72%
* 8% Designers
* 21% Custom ers
* 43% Interested Individuals
Website Visits Resulting
from Campaign Activities
Other
46%
CampaignDriven
Visits
54%
* 13% Advertising
* 37% Media Story/Online Search
* 4% Events
Other
Visitors
63%
Target
Audience
Visitors
37%
* 15% Earn $80K-$100K
* 22% Earn $100K +
Website Visits for Reasons
Related to Campaign Goals
Other
Reasons
23%
Reasons
Related to
Campaign
77%
* 32% Learn about RugMark rugs
* 12% Purchase a RugMark rug
* 33% Learn about the campaign
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It appears that earned media, advertising and the website are currently our most effective outreach
strategies, and these activities are reinforcing.
The geographic focus of the campaign in New York and San Francisco has facilitated deeper
impact in these markets. In the Bay Area, more marketing partners and importers are signing up,
and coverage has been more in-depth. There is still more work to do there. New York has been
harder to penetrate.
Partner Feedback
At the launch of the campaign, RugMark conducted benchmark surveys with industry partners.
RugMark recently revisited these same questions. According to certified rug importers, awareness
about RugMark has nearly doubled in their showrooms and amongst their interior designer
network. Retailers believe triple the number of end-consumers know about RugMark; while this
estimate may be skewed to the high side, nevertheless there has been a major surge.
Our industry members consistently comment on the effectiveness of the ad campaign and would
like more opportunities for co-op advertising. Partners like the marketing tool kits and are using
them. In particular, use of the RugMark logo, sales training and website content was highlighted.
RugMark certification is increasingly part of the dialogue and decision-making in participating
showrooms and retail outlets and partners report that as many as 19 percent of sales are more
easily closed by telling the RugMark story. Phone surveys also revealed that more outreach
must be made to engage partners fully in the campaign, and more attention must go toward
educating the interior design and architect communities.
Social Impact
UNICEF and the Department of Labor estimate that in RugMark’s 10 years of operation, child
labor on South Asian looms dropped from 1 million to 300,000. In Nepal, child labor in carpet
production dropped from 11% in 1996 to under 3% in 2003. Over the same years, the number of
factories that RugMark licensed and inspected grew to 65% of all production facilities.
In just two years, between 2004-2006, RugMark has increased the amount of funds generated for
schools in weaving communities by 55%. In 2006, approximately $90,000 was dedicated to
ensuring that children rescued from carpet looms have a place in a classroom alternatively.
Funds Raised for Children's Education
US$, thousands
% Increase = 55%
$88.2
100
80
60
$56.7
40
20
0
2004
2006
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