Encinitas, Calif.—Cali is coming into 2024 loaded for bear. The lifestyle brand continues to grow its portfolio of products as more retailers benefit from the company’s unique omni-channel approach. The secret sauce combines a unique coastal style with a limited distribution strategy along with a focus on higher-end products to allow the retailer to make more money.
The brand has come a long way over the last five years. Once known as a company specializing in bamboo flooring, Cali expanded into niche categories like decking and outdoor rugs, but it hit another gear with its SPC, hardwood and laminate.
Doug Jackson, president and CEO, likens Cali’s approach to a well-known hamburger chain that has developed a cult-like following. “The thing I want people to understand is the differentiated way we go to market,” he explained. “You’ve been to In-N-Out Burger, right? In-N-Out Burger is known for three or four things. They do it simple and they do it well and everybody loves it. In wood, there’s three or four things. In laminate, there’s three or four things. In vinyl, there’s three or four things. In decking, there’s one or two things. In turf, there’s three things. We get into something, we want to be good. We want to be thoughtful. We want to make sure that they could go from good to better to best.”
In illustration, remaining true to its coastal brand proposition, Cali this year is introducing a higher-end wood collection called Cellar. The 12-SKU line comes on the heels of last year’s intro Barrel, which combines current trends with classic European oak in random lengths. “We believe there’s a ton of opportunity for a premium brand, which Cali really speaks to,” said Alex Brodkin, vice president of product and sourcing. “We are going to spend more time playing in the best category than chasing what everyone else is chasing after.”
One advantage of playing at the high end, Brodkin said, is that no matter the economic situation, premium products seem to be immune to a downturn. “That premium consumer is buying no matter what. They don’t care if the economy’s down.”
Cellar is all about design and trend and color, Brodkin said. “It’s really much more about the super clean visual than anything else. It’s just about being a leader in color and design. And the 8-inch width is a little different.”
Jackson said he thinks there is space to go after some wood niches. “We are going to get after that wood business in typical Cali fashion.”
What differentiates Cellar from some of the other wood lines out there? “First, it is AB grade, so you don’t see all the knots and imperfections like you see in some woods,” he explained. “Second, it’s the color line. People buy color first, second and third.”
To that end, last year Cali hired colorist Lisa Lux, who Jackson knew from his days at Tuftex. “Remember what Tuftex was always known for? Color and style. Between Mike [Belprez], (director, product management and innovation), Alex and Lisa, we have the A team. And if you look at why Cellar will sell, there’s no color line in the industry that looks like it. And then you’ve got a limited distribution so you can show it at a good margin.”
Retail price point for Cellar will be about $12 a foot. It slots in just under Meritage, which sits atop Cali’s wood portfolio at $13.29 a foot. Under Cellar is Whiskey and Wine at $8.99 per square foot and then the entry-level Barrel at $6.49. “Meritage has always been a successful product, but it’s been a lone wolf; you need to step the consumer there,” said Bob Fish, vice president and general manager – retail.
Laminate
Cali is getting into the waterproof laminate game with the launch of Mavericks, its second laminate collection but it takes realism to a new level, Jackson said. Fish referred to this line as the Shaquille O’Neill of laminate since planks measure 7 feet by two inches. More importantly, they’re said to offer incredibly realistic texture. “The whole industry has its mind wrapped around embossed in registering,” Fish said. “When was the last time you saw a piece of wood with holes in it and knots with rough edges? They sand it, they smooth it. That’s what this replicates. That’s why it looks so much like real wood.” Retail price point for Mavericks is $5.99.
Jackson concluded that the one takeaway is that Cali is all about color and differentiation to the point where people don’t feel the need to talk about price. “I used to pride myself in presenting a display to dealers and never once quoting a price. Because if I could walk you through the line and tell you why this makes sense and where it fits in your showroom, and you’re like, “I’ll take it” and I never quoted you a price, then I did my job.”
