How I Think

Disneyland for Furniture

Published 4 months ago • 1 min read

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 soon,

Chris Hladczuk

How I Think

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