468 Retail and Channel Management Blog

Sunday, March 12, 2017

Restoration Hardware - Retail Meets Exclusivity

Restoration Hardware: Selling a Lifestyle

Restoration Hardware is a luxury brand in the home furnishings marketplace. The company offers a variety of products, such as furniture, lighting, textiles, bath ware, d├ęcor, outdoor and garden, as well as baby & child products. Restoration Hardware operates an integrated business with multiple channels of distribution including Galleries, Source Books and websites. I believe that Restoration Hardware is a successful retail store because of their store environment, customer engagement, and segmentation. 


Environment
In my opinion, Restoration Hardware has perfected the use of its galleries. If you have ever been to a Restoration Hardware location, you may feel as though you are in a luxurious home - not a furniture store. The companies ability to make their store environment unique and welcoming allows consumers to visualize how their products would look in their own home. In comparison to their competitors, I believe that Restoration Hardware's store format feels more intimate, relaxed, and welcoming unlike most other furniture galleries. 

Engagement
In terms of customer engagement, Restoration Hardware engages with their customers in a variety of ways. Their in-store galleries invite consumers to engage with the Restoration Hardware lifestyle: timeless, authentic, unique interior design. They also showcase their products and vision through their Source Books and website, which serves as a virtual extension and compelling tour of their brand. Whether consumers are shopping in-store or online, consumers are engaged by the brands passion and vision for authenticity, which inspires consumers to create such a space of their own. Restoration Hardware has focussed on their gallery offerings at higher price points to distinguish themselves from Pottery Barn. From my experience shopping at both of these retail locations, I feel more engaged by the Restoration Hardware galleries because of the comfortable luxury lifestyle that they create through their brand.


Segmentation
Restoration Hardware segments itself towards the upper class population. Restoration Hardware has one full time designer, and they partner with other artisans and designers who speak to their brand. Since the company is committed to creating exclusive products, they focus on targeting the upper class population. This segmentation has the income and appreciation for Restoration Hardware's commitment to authenticity. Consumers who invest in Restoration Hardware are not only shopping for high end products, but also for brand recognition and luxury. 

More recently, Restoration Hardware has expanded their product offerings into a "Gifts" section, which includes items like leather tech cases, drink ware, robes, and accessories. On their website, they even have a section "Gifts Under $50". As a full-time student, I appreciate the company's choice to carry products that are more affordable, yet still unique and high quality because it allows me to engage with the brand. In addition, I also believe that by selling products that are accessible to the middle class will inspire and motivate such consumers to attain the Restoration Hardware lifestyle in the future. 


In conclusion, I believe that Restoration Hardware will continue to be one of the most successful retail stores in the home furnishings marketplace. The company's store environment, engagement, and segmentation strategies propel the company's value proposition. I adore the Restoration Hardware lifestyle, and hope to one day express my individuality in my future home through their products. 

References: 

https://www.restorationhardware.com/company-info/about-us.jsp
https://popandcircumstanceblog.com/2013/06/10/a-tour-of-the-restoration-hardware-flagship-store-in-boston/
https://popandcircumstanceblog.com/2013/06/10/a-tour-of-the-restoration-hardware-flagship-store-in-boston/
https://popandcircumstanceblog.com/2013/06/10/a-tour-of-the-restoration-hardware-flagship-store-in-boston/



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