profile

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

Read more from How I Think

hey team, it's chris hladczuk back in your inbox. this idea has been rattling around in my brain for awhile so I needed to share it with you. Egoless Execution You need crazy confidence to start a company. You spend countless hours pitching people on the vision. You believe a secret about the world no one understands yet. Plenty of people say you're crazy. You must have an ego to endure constant rejection. A big enough ego to believe you're right and everyone else is wrong. A big enough ego...

12 days ago • 1 min read

Hey Team, it's your boy Chris Hladczuk back in your inbox. (if you missed it, I raised $2.5M + am assembling the avengers. If you know a savage engineer with startup experience who loves mobile, reply here! I'll pay you $5,000 if I hire them.) Okay so safe ideas are really risky. Safe ideas = consensus stuff that the random dude at the company holiday party immediately agrees with Examples: Work at Goldman Sachs for 2 years - it's "risky" to quit after 1 year Go to business school - it's...

26 days ago • 1 min read

Hey so I found this $8 billion business that battles Nike and Adidas. The founder used a garden hose for an early edge. Then tennis star Roger Federer blew up the brand. Here’s how On Running disrupted the crowded footwear category: In 2010, a 6x Swiss Ironman athlete grabbed a garden hose. And he realized the shape could offer cloud-like cushioning. He grabbed glue and hacked together the first version of “On Cloud” running shoes. Today, On does over $1 billion in yearly sales and worth $8...

5 months ago • 1 min read
Share this post