From hula hoops to kitchenware - Brian Davis' Decor America markets plastic dinnerware - HomeMarket Trends

Discount Store News, March 20, 1989 by Mary Ellen Kelly

From Hula Hoops to Kitchenware More than 30 years after bringing the hula hoop to the United States, Australia's Brian Davis is making a similar splash with innovative plastic dinnerware

Brian Davis might not be dancing circles around the U.S. tabletop market, but this man who brought the hula hoop to the United States has doubled the sales volume of his U.S. subsidiary, Decor America, in the last four months.

And, by increasing its business in the mass market, Decor America expects to double its volume every four months "for the next 24 months, at least," according to Barr Hall, senior vice president, marketing, for the U.S. division.

Decor was started in Melbourne, Australia, 31 years ago by Davis. Since that time he has established the company as Australia's leading manufacturer of housewares and gardenware (the latter through its self-watering plant pots and other items), said Hall.

The Australian parent first introduced its merchandise to the United States on an import basis. Three years ago, Davis decided to form the U.S. subsidiary. Now all products distributed to the United States, Mexico, Caribbean Basin countries, Great Britain and France are manufactured in the United States.

Decor America began selling its plastic dinnerware, mugs, trays, wine coolers, storage containers and other products to upper crust department stores, but Hall says future company growth will be through the mass outlets.

"Our long-term growth will be through places like K mart and grocery channels," Hall said.

While Decor America does not currently sell to K mart, some of its "picnicware" or kitchenware products--which include vibrantly colored plates, mugs, bowls, colanders and bread boxes--are now being sold at all Target stores.

Decor America's goal is to "aim at the mass channels that want to upgrade their program," said Hall. "We're directed toward the upper strata of mass merchandisers."

Thirty-five percent of Decor America's sales volume is through discount stores, while fifteen percent is generated through grocery stores. Department stores, specialty stores and catalog sales companies account for the rest of their sales.

The fastest growing retail segment for the company is grocery stores, with warehouse clubs and upper-end mass merchandisers also becoming increasingly popular, Hall said.

The range of stores that carry Decor America products includes Fortunoff, Home Express, Crate and Barrel, Williams Sonoma and Costco.

The company can sell to such a wide range of retail customers because its product range is broad while its price range is narrow. All products sell below $40 at retail.

The products might carry low prices, but they have been cited for their high-quality styling: the Decor corporation has been awarded 200 international design awards throughout the 36 countries where it does business. For example, Decor's BYO Wine Cooler, a double-walled plastic wine chiller, is part of the Museum of Modern Art's permanent collection in new York. "We're distinguishing ourselves with design," Hall said. "Our products feature some sort of innovative styling or unique feature. We know the mass channels want to differentiate themselves. We want to differentiate our product through attention to detail."

By giving a new twist to the color, style and function of basic housewares merchandise, the company also hopes to avoid head-on competition with larger vendors that produce similar goods.

"We have many competitors. We position ourselves in a way that doesn't take on giants--where the question becomes who can sell at the lowest price," explained Hall.

Right now, the U.S. division does not own its own manufacturing plants. The company will probably decide to build one sometime in the future, but right now it is dedicating itself to keeping its merchandise fresh.

"We plan to stay in a mode where we contract out for awhile," Hall said. "We're spending most of resources in the development of new products, not in brick and mortar. The trick in this business is to be as far out in front of the pack as possible."

Hall estimated the company is working on the development of between 50 to 100 products at any given time. Blues and greens are currently among the top performing colors at Decor America, but bright yellow is also showing promise.

Davis, the founder, is originally from Broome, a remote area on Australia's northwest coast. While still in his 20s, he showed the Wham-O toy company a circular toy made from cane which eventually became known as the hula hoop.

Hall came to Decor America after a 16-year stint with General Electric's major appliance division in Canada, having found the opportunity at the fledgling subsidiary too enticing to resist, he said.

The 1989 introductions to Decor's kitchenware line for the mass market consist of eight products: bread box, lettuce crisper, strainer/shaker, kitchen scrap pin, stackable pitcher, mixing bowl, a matching colander, and a round tray.

The picnicware line introductions, also directed toward mass channels, include 20 pieces. Plates, mugs, bowls, goblets, serving utensils, salt and pepper shakers, mustard/ketchup dispensers and a plastic "Carry-All" hamper.