Douglas aims to become one-stop product source
By Joan Gunin -- Furniture Today, September 5, 2005
El Segundo, Calif. — Douglas Furniture is using its global sourcing network as a platform for product development as it seeks to become a one-stop source of high-value goods at promotional price points.
The maker and importer of motion and stationary upholstery, casual dining, occasional tables and game tables has broadened its sourcing efforts, created a "great rooms" marketing concept, and added more leather and seating choices.
"We view imports as an opportunity, not a threat," said CEO Robert MacDonald, who joined the company 18 months ago.
Since moving most of its manufacturing to a 600,000-square-foot facility in Mexico's Baja California, Douglas has shifted corporate headquarters from Redondo Beach, Calif., to a 20,000-square-foot "marketing development center" in El Segundo. The company also sources in Asia.
Positioning itself as a marketer and global resource for product development, Douglas will use its El Segundo facility as "a marketing, merchandising and showroom vehicle for our customers," said Ken Salm, senior vice president of sales and business development. "It also will be used as an education and training center and for focus groups for consumer and customer feedback."
MacDonald said, "We don't want to become a consumer brand; we are out to better understand our customer demographics."
The company aims to create better goods "without changing our price points," MacDonald said. "We're not trying to drive our prices down; we are driving our value up. Our customer is the traditional furniture retailer who caters to the promotional consumer market."
Douglas, which sells a cut-and-sew upholstery line out of China, can switch suppliers quickly, he said.
"We are well-positioned in the western U.S. and competitive on the East Coast with truckload deliveries," he added. "We can ship it all on one truck, including mixed loads."
Douglas created the great rooms concept to promote its correlate programs. Its new tagline, "Douglas Furniture ... because great rooms begin with great furniture," underscores its strength as a one-stop supplier.
The company also offers Leather Select, a married cover program with a two-color range that can be extended to five additional colors and two grades for a step-up charge.
Similarly, Salm said, Douglas has expanded its high-density foam cushion program to encompass select motion sectionals, sofas and loveseats.
