by Other furniture companies that once offered bathroom and kitchen furnishings could also see renewed interest in these categories
HIGH POINT — The rollout of the Waterworks brand on the RH platform in mid-December represents a significant step not just for RH, but for the furnishings industry in general as it further expands furnishings to the whole home, including the kitchen and bath.
Having acquired the brand in 2016, RH bought into a product line that offers a wide range of cabinetry, sinks, faucets, shelves, hardware and even lighting, not to mention stone and tile for countertops and backsplashes.
In a letter to RH shareholders, employees and other stakeholders released as part of the company’s fiscal Q3 earnings, company Chairman and CEO Gary Friedman praised the Waterworks team for its efforts to “further elevate the brand and build a highly profitable business model that can scale.” He noted that it generates most of its revenues from the trade market including architects, designers, developers and builders.
As RH currently generates most of its revenues from consumers, he said there is “a significant opportunity to amplify the Waterworks business on the RH platform by exposing the brand to a much larger audience, similar to how we have expanded other trade-focused businesses and brands over the years.”
He also noted that RH is starting to introduce the Waterworks brand across the RH platform, starting with a 3,000-square-foot space inside its new Design Gallery that opened Dec. 13 in Newport Beach, California. With this rollout, he added, its interior designers around the world will now be able to specify Waterworks in their design projects and that customers will be able to now view and purchase the line on its website RH.com, starting at the end of December.
This development is timely in the sense that there appears to be more talk about the kitchen and bath segment in the industry, including at the High Point Market, where the National Kitchen & Bath Association and the Kitchen & Bath Industry Show had a tent on Fred Alexander Place in the Hamilton Wrenn design district. The market also featured other events including a presentation called “How the Kitchen Is Reshaping Design” along with various culinary demos and tastings with chef Justin Cullimore, all of which were presented by Kitchen Suite.
The idea of these and other events including presentations by Thom Felicia and others representing NKBA/KBIS further entwined the kitchen and bath segment with designers and others in the residential furnishings space, which of course makes sense because — as RH is illustrating with its Waterworks concept — the kitchen and bath indeed are part of the whole home in the same way entertainment areas and office spaces have been for years.
Of course the move by RH to compete in the kitchen and bath space is not dissimilar to the efforts that longtime home improvement giants Lowe’s and Home Depot have made to compete in the furniture space. Most DIY consumers have long known these retailers for a wide range of home improvement products ranging from lighting and lumber to appliances and lawn and garden supplies, to name several core categories. Now more consumers are beginning to associate these retailers with furniture that can be purchased directly on their respective websites.
Perhaps not so ironically, furniture resources have also been known to compete in the kitchen and bath space. For a key example of this, check out the bath furnishings section on Ashley’s website. It has a wide mix of products for the space, ranging from vanity sinks and tall bath organizers to shelving, wall cabinets and over-the-toilet storage.
This harkens to companies such as Stein World, Powell, GJ Styles, Sarreid, Hamilton Square, Ultimate Accents and Hooker Furniture that have offered and in some cases still a line of decorative vanity sinks that had both storage and undermount sink functionality not to mention a wide palette of stylish looks. For the bathroom, some resources also offered storage cabinets for towels and other linens along with other bath supplies.
On the kitchen side, one of the more popular items was the kitchen island, which was largely a counter-height statement piece with companion seating. These items also offered plenty of shelf and drawer storage, making them a place where families could gather for a meal and even where kids could do their homework. Other companion items sold separately included kitchen and bar carts that also were functional in their own smaller-scaled manner, while also accommodating smaller spaces in smaller homes.
Others still, including luxury furniture resource Francesco Molon, also once featured entire kitchens in their High Point showroom, featuring luxury cabinets and counters, not to mention cooking displays at market. And residential furniture resources ranging from Bernhardt to SLF also have long had divisions serving the hospitality market and for years have developed a wide range of products, particularly for hotel bathrooms including vanity sinks.
If all this sounds familiar, it just backs up our belief that the residential sector is well prepared to further extend its presence in these two areas of the home. As the kitchen and bath industry begins to establish its own presence in High Point, it might make sense for those sources with experience in these categories to consider how these segments might create further growth opportunities now and in the future.
