This brand still does not use social media. Strategic or stubborn?

Restoration Hardware does not use Social. No IG. No Pinterest pics.  The brand is purposefully against social and community building.  

Strategic or Stubborn? 

Because I don't see the brand on social, I actually had no idea. And did a little digging this week?

The Impetus 

A few nights ago my hairstylist showed me a video she made on Instagram Reels of her newly designed home that had 300k views (ps she’s a legend) - it’s all RH. She wanted to tag the brand because she is constantly asked, "What brand is that? Where can I buy it?"

She’s not an affiliate. Not a brand-influencer. It's not about that. She is simply a lover of the brand and almost heartbroken that they don't want to see what she’s done.

I immediately thought ..."this can't be true - even social shunner TJ Maxx's HomeGoods has social + a new e-commerce platform on the way."

So together we dug in ...

• Looked on Linkedin for the social/digital team ( N/A), checked for the social accounts (N/A) - there are a bunch of fan accounts but nothing is "run" by the brand or shoppable, Website (barely indexed in search - this is what you see searching "Restoration Hardware" in Google),

and finally, read some articles. 

Turns out, it is a much-covered topic

• Gary Friedman on building big, ignoring social media, and RH's future Feb 2019 
• RH Hardware: Failing when it comes to Digital Sept 2019 
• How CEO Gary Friedman Built Restoration Hardware Into RH, a Luxury-Brand Juggernaut Sept 2020 

The CEO holds firm on the approach to digital/social citing mainly (pulled quotes)

• We are creating a customer experience that cannot be replicated online; 
• We have total control of our brand from concept to customer,
• We should do better so people talk about us. If no one’s talking about the brand online, he reasons, the work’s not good enough—which is all the more reason to invest in the products rather than “posting online about ourselves.”
• And with that thinks it means the brand is extremely rare and valuable in this way. 

What they are doing is working. The Company is doing very well financially

• The RH customer set is still buying. And buying more. Their stock is doing well - benefiting from current consumer demand. Is that short term? Time will tell.
• Seeking Alpha believes that "RH is an opportunity waiting to explode. The company is uniquely positioned to fulfill the unmet need for high-quality luxury designer furnishings at affordable prices and at scale. Over the next several years, we expect the company to sharply accelerate the pace of international expansion and the conversion of legacy showrooms into design galleries. Longer-term, RH will command significant brand recognition and brand value across the globe as a provider of affordable luxury goods and services. These developments will have a compounding effect, transforming the company into a significantly larger entity in terms of revenues, earnings, free cash flows, and market capitalization." ( Sept 2020)

I started to play both sides of the coin. Believer in this approach.. or a Skeptic?

Believer 

• Social is a hot mess. Brands are feed filling and some not really seeing the same return in terms of human capital and expense. If you really look at the numbers, it doesn't drive as much traffic as you may expect. I get the desire to simply not play this game.
• They are "on social." It's just not their doing... And there is exponential value in this type of brand love. You buy into the RH POV on social: “Our focus is on doing great work and letting the world talk about us,” says Friedman. If no one’s talking about the brand online, he reasons, the work’s not good enough—which is all the more reason to invest in the products rather than “posting online about ourselves.”(boH)
• People who love the brand may know this about RH and find it to connect them even more deeply as loyalists. It's got a cache. They can continue to ignite this story. 
• For very high-end buyers of a certain age - they may adore this distinction. As mentioned, "you can't scale taste." You can't buy a Chanel bag online. And luxury audiences often connect well to this strategy.
• 2/3 of the buyers are Interior Designers who enjoy their concierge-like serviceability to pull, design, and sell in a bespoke way to customers.
• The power of the store. Investing in amazing physical experiences trumps all. And as the CEO said, it pays off in spades to bring stronger value to the brand + true customer Brand Love - the ultimate desire.

Skeptic 

• Yes, social is a money pit and everyone is chasing the same prize - engagement. With the change in algorithms & consumer behavior, it is becoming an increasing strain on a marketing organization to keep up, control costs, and do it well. But this is the lifestyle and home furnishings category. Social is built for a tapestry of your images. What harm does it do to publish the content you want to control here?
• Do we imagine anyone sub-35-years-old picking up the catalog? It can be an extension of your catalog strategy. Shifting to use social as a catalog viewing format can make people feel more personally connected to the brand. Why not make Instagram a catalog and delete, refresh, update it every season? In fact, many dislike the company because of the catalogs and for years have called the tactic appalling, wasteful, and reckless. (Chicago Tribune) As someone in an apartment building, I am normalized to seeing 90% + of the catalogs dropped off shifted directly to the trash.
• There is no communication from the brand to super fans and promoters. If properly stated, 2/3 of their business comes from Interior Designers and perhaps end-consumers who request the brand. Can someone else step in with a slightly different product to fill that gap? Would they at least want to support those who are posting inspiration for their product on social? 
• I get the 'physical drives everything' sentiment. Store experience can not be matched as a power. Many large-scale retailers only had 10-15% of their overall revenue captured by digital just last year.
• But it leads to the final points. 

1. The Pandemic forcing the acceleration of all things e-commerce.
2. Out of sight, out of mind.

Ok, so verdict?

Personally, I lean more on the skeptic side. There is much more to learn and this was just a precursory dive into their approach by reading the interwebs.

What drives me over the edge is...

When a die hard fan says, "it makes me so sad I can’t share what I have created at home with the brand" - that says it all. 

To use social, Restoration Hardware need not be "sell-outs" to the feed. They have a golden opportunity to make a splash with a fresh strategy

1. Do it your way. Find ways to celebrate those who love you. There is no one that says you have to follow a classic playbook on social. RH has the opportunity to enter the space in an entirely new way to speak to the existing fans + build inroads with new audiences. 
2. Build for a custom group. Perhaps social is a place for lower price point items to act as a gateway attracting the next generation of customers.
3. Ambassador programs. Like the unique RH Grey Card premium loyalty program the brand launched in 2016 - how can they reinvent what it means to be held in close community with the brand?

But then again.... I could be made a believer :)

 Et tu? Skeptic or Believer?

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P.S. Thanks to my Slack Community for weighing in on this over the weekend. Such a unique tension area, it felt like a great moment to expand more broadly. ✨