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Restoration Hardware Using the Brick and Mortar Store as a 3D Catalog Case Solution

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While the technology is evolving, the internet serves as a medium to reach the customer. The technology of augmented and virtual reality has resulted in brands developing their unique selling propositions online while providing customers the retail experience. Many retailers, such as Sephora and IKEA, have adopted AR to show clients what the products will look like on them or their homes (Baird, 2019). With a simple website also, many retailers have managed to explore the blue ocean strategy in e-retail. This includes small businesses such as shoedazzle.com, which engage users in an online quiz and suggest products according to their needs (Spors, 2013).

Following questions are answered in this case study solution

  1. RH's CEO believes that the Internet is limited in its ability to facilitate differentiation among retailers. Do you agree? Which retailers do a particularly effective job of presenting their products through their websites?

  2. Does the RH strategy work only for high-end/prestige products, or are there elements of its approach that would be appropriate for retailers at all price levels? Choose one of your favorite retailers and discuss how that company could best apply the approach that RH is using.

  3. Is it environmentally responsible for RH to produce and distribute such large paper catalogs? Are there ways it could mitigate the environmental impact of this program? How could it best deal with the likely negative reaction from “green” customers?

  4. What are some other novel ways that retailers could define the role of their brick-and-mortar stores to optimize their effectiveness in contributing to increasing firm revenues and profits?

Case Analysis for Restoration Hardware Using the Brick and Mortar Store as a 3D Catalog

Generation Z is expected to shop online and focus on high value for money. While the traditional brick and mortar model is best suited for the older generations who preferred the retail experience as opposed to online shopping, the new generation has been raised in the era of technology (Hanbury, 2019). The internet has opened up new options for retail stores to differentiate rather than just differentiating on the basis of brick and mortar experience. 

2. Does the RH strategy work only for high-end/prestige products, or are there elements of its approach that would be appropriate for retailers at all price levels? Choose one of your favorite retailers and discuss how that company could best apply the approach that RH is using.

There is a concept of high-involvement and low-involvement products which can explain the effectiveness of the RH strategy. Those products which are a regular purchase for the customer and are priced low are low involvement since the customer does not take a lot of time and effort in the final purchase decision. However, when it comes to high-involvement products, the RH strategy seems to be effective. This is because, for luxury products, customers spend more time to ensure the product’s features, quality, and benefits and match it to their expectations since the monetary investment is also high (Gardetti, 2017).

Sole What is a premium sneakers retailer in Malaysia with four stores in high-end malls and online presence as well. The website is simple, and products can be searched by code. This shows that the website is complementing the sales by leveraging purchase (Sole What, 2020). Sole What can launch a high-quality brochure for its customers and a loyalty program which will increase sales. It can also expand the store to help customers experience the sneakers in real-time rather than using retail to display and try on the products. 

3. Is it environmentally responsible for RH to produce and distribute such large paper catalogs? Are there ways it could mitigate the environmental impact of this program? How could it best deal with the likely negative reaction from “green” customers?

While the paper catalogs with about 3000 pages would impact the sustainability practices of the business, RH can deal with this dilemma by introducing the eco-friendly paper. This can also be included in the sustainability strategy of the company, which will further improve the brand image of RH. A smaller catalog with special picks of the year can be sent with glossy finished images, which will compensate for the slightly lower resolution of images on eco-friendly paper (Fletcher, 2018)

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