Restoration Hardware’s Mail-Order Extravagance
Amy Merrick, writing in The New Yorker, explores why Restoration Hardware mailed a 17-pound catalog:
Why do we still have catalogues? Web and mobile browsers have improved dramatically in the past decade. It’s hard to argue that catalogues, like books, are objects worth preserving for their aesthetic value; they will be obsolete within months. Yet Americans received nearly twelve billion catalogs last year.
Marketers say that people who browse catalogues buy more than those who shop only online. The U.S. Postal Service works hard to promote catalogues, which have become an increasingly important segment of U.S.P.S. business as people mail fewer first-class letters. The online retailer Bonobos, which began shipping catalogues last year, told the Wall Street Journal that twenty per cent of its new Web customers placed orders after receiving their first mailings, and spent more than other new shoppers.
Those incremental sales are accompanied by enormous waste. Industry surveys from groups like the Direct Marketing Association estimate that catalogues get average response rates of four to five per cent. In the case of Restoration Hardware, that means that for every sixty thousand pages mailed, approximately three thousand pay off.