Why would a billionaire bring a date to a furniture store?
Unless it's Restoration Hardware (RH).
This is the Disneyland of Furniture.
Here's how the $4 billion brand exploded👇
Back in 1979, Stephen Gordon has a problem.
Why can’t you buy good, affordable furniture?
He started Restoration Hardware (RH) to solve it.
But 44 years later, RH is way different:
Today, it's a luxury home goods brand with restaurants, coffee shops, and hotels.
And they do over $3 billion in sales.
The secret sauce to attracting customers?
Selling Third-Space-as-a-Service (TSaaS)
Here's what I mean:
- Your 1st space is your house
- Your 2nd space is your office
- Your 3rd space is a gathering spot to relax
It used to be local churches and community centers.
But the decline in religion and rise in digital created a void.
And RH Galleries is here to fill it.
In 2015, RH Galleries launches in Chicago.
Imagine these galleries as stores on steroids.
- Wine vaults
- Coffee bars
- Art exhibits
- Music vaults
- Movie theaters
- Plant nurseries
- Rooftop restaurants
The Chicago eatery is the 7th most instagrammed cafe in the world.
And now they serve as center pieces of cities.
• England = 400 year old, 73 acre, 60 room historic estate
• San Francisco = 5 floor, 80,000 square feet with 2 wine bars and a restaurant
• New York = 90,000 square feet with a rooftop restaurant
RH is not begging you to buy furniture.
- You grab a muffin at the cafe
- You sip a glass of wine on a date
- You spend hours walking the gallery
And live the home decor through osmosis.
RH Galleries is a billion dollar billboard to sell furniture.
Third spaces like the Soho Club sell the space as their primary product.
RH creates a space to sell furniture.
And it follows the golden rule of marketing:
“Show, Don’t Tell”
- Don’t tell me your furniture is amazing
Show me ridiculously well designed home decor.
- Don’t tell me to come to the store
Show me the magic.
RH even built a hotel in New York City.
They're redefining what it means to build a brand.
And it all starts with the Disneyland for Furniture.
See you next week,
p.s. Who should I write about next week? Hit reply and let me know