It Takes a Village: Restoration Hardware Imagines a Brand “Ecosystem”

 

 

 

There are many brands that like to take their concept of lifestyle literally. For decades, fashion designers have lent their name and style to major hotel chains, such as Armani, Fendi, and Versace.

 

Those are easily negotiated licensing deals. Hire an operator and you have your own hotel.

 

Feeling more ambitious? Try owning a branded community.

 

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“We believe Aspen represents a singular opportunity to elevate the RH brand by exposing the world of RH to the world’s most affluent and discerning customers.” – Gary Friedman, RH CEO

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Urban Outfitters tried it and after a lot of red tape opened its own “lifestyle center” at Devon Yard in Philadelphia – minus the apartment complex they had hoped for. The result is more mini-mall than full-blown village.

 

Now comes Restoration Hardware, the purveyor of cerused oak reproductions of French antiques and quasi-industrial chic furnishings, with an ambitious plan to build out a massive enclave in Aspen, Colorado featuring retail stores, restaurants, hotels, and turnkey luxury condos.

 

 

Aspen, Colorado has managed to remain relatively unchanged despite its reputation as an enclave of the rich. Restoration Hardware’s plan is to further capitalize on the town’s primary customers. The Sanctuary is but one proposed plan.

 

They call it an “ecosystem” which foreshadows their larger goal of expanding far beyond the parameters of traditional retail.

 

What’s different here is that the brand intends to own the entire concept to the tune of $105 million in equity investment.

 

“We believe Aspen represents a singular opportunity to elevate the RH brand by exposing the world of RH to the world’s most affluent and discerning customers in a single, walkable market,” says Gary Friedman, RH chairman and CEO.

 

“Additionally, we believe the education RH will gain from a real estate development and ownership perspective will be immeasurable as the brand builds its global ecosystem of products, places, services, and spaces.”

 

 

RH’s new “gallery” concept (at top)  in New York’s Meatpacking District and an RH “Guesthouse” hotel on nearby Gansevoort Street (below).

 

It’s something Restoration Hardware has been plotting since the early oughts when it moved into the hospitality sector with cafes, wine bars, and restaurants in places where their disciples live and play: Yountville, California, West Palm Beach; and surprisingly, outposts in Columbus, Ohio and Minneapolis.

 

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Of course, branded environments are nothing new and indeed they are excellent ways to immerse the consumer in a brand’s universe.

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Already the brand has set forth the blueprint for a series of “guesthouses,” the company’s foray into the hotel industry (much delayed, the New York Guesthouse in the Meatpacking District is due to open imminently.)

 

The empire continues with turnkey residences and a yacht, the RH3, which is currently available for charter in the Caribbean and Mediterranean.

 

 

RH3 is a branded yacht available for charter for over $100,000 a week — or you can just buy one bespoke.

 

By summer 2021, the company plans to expand its footprint to Europe, first with RH Paris then RH London.

 

Of course, branded environments are nothing new and indeed they are excellent ways to immerse the consumer in a brand’s universe. Every material, every object, even the fragrance of such places allows for the purest delivery of the brand ethos.

 

While RH will no doubt do a beautiful job executing their Aspen project, one has to wonder if there might be a danger of saturation. At a certain point, people grow tired of a single point of reference.

 

Controlled environments – even expertly designed ones – can become a vacuum of artificial life and leave one wanting a sense of surprise and contrast. The challenge for RH will be to ensure that the Aspen ecosystem is dynamic and ever-evolving, and avoiding the monotony of over-designed environments.

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