Business of Home Podcast Summary
Episode: The Thursday Show: Why Arhaus is suing RH. Plus: Arte is betting on the D&D Building
Release Date: July 31, 2025
Host: Dennis Scully
Guests: Fred Nikolas (Executive Editor, Business of Home), Philippe Desart (Managing Director, Arte)
Introduction and Agenda
The episode kicks off with host Dennis Scully introducing the main topics of the day: the lawsuit between "Our House" and Restoration Hardware (RH), and Arte's strategic investment in the D&D Building showroom in New York. Executive Editor Fred Nikolas joins Dennis to navigate through the latest industry news, including updates on tariffs, insights from the Vegas Market, and more.
Recap of Previous Episode
Dennis briefly revisits the previous episode featuring Jeremy Bellotti and David Rosenwasser of Rarefy. Fred emphasizes Rarefy's multifaceted business model, highlighting their popularity on social media for design history videos and their diverse offerings in vintage and contemporary furniture.
Fred Nikolas [02:42]: “Rarefy is just such an interesting business. They sell vintage furniture, contemporary brands, and do so many different things.”
Dennis adds that Rarefy is mission-driven, aiming to inject fresh energy into the design and furniture industry.
Tariffs Update
A significant portion of the discussion centers on recent trade developments. The Trump administration has imposed a 15% tariff on exports from the EU and Japan, effective August 1st.
Fred Nikolas [04:33]: “The EU deal is being framed as a win for Trump and the US, but European importers aren’t seeing it that way.”
Dennis points out the compounded impact of a weakening US dollar alongside the new tariffs, escalating costs for European goods.
Dennis Scully [07:38]: “Between the dollar and the tariffs, this is a very challenging time for a lot of European companies.”
Fred anticipates that while 15% tariffs are manageable compared to earlier proposed rates (e.g., 50% on steel), they will likely lead to modest price increases across the board.
Lawsuit: Our House vs. RH
The hosts delve into the contentious lawsuit filed by "Our House" against RH, accusing the latter of corporate espionage. Central to the case is Lisa Chee, a former executive who moved from "Our House" to RH, allegedly bringing confidential information.
Fred Nikolas [11:28]: “Our House alleges that Lisa Chee forwarded business-related emails to her personal account and shared trade secrets with RH.”
Dennis reflects on the broader implications for the industry, noting the delicate balance designers face in retaining talent while safeguarding proprietary information.
Dennis Scully [16:24]: “This is just another reminder of that drama playing out on a big corporate level.”
Fred suggests that the best defense is fostering strong employee loyalty through competitive compensation and a positive work environment.
Cryptocurrency in Real Estate
The conversation shifts to the growing intersection of cryptocurrency and real estate. Christie's International Real Estate has launched a division to facilitate property purchases using crypto.
Fred Nikolas [17:05]: “Christie's entering the crypto space shows how established companies are reaching for younger, affluent markets.”
Dennis anticipates further integration of bitcoin and other cryptocurrencies in high-value transactions, especially in hotspots like California and New York. The hosts debate the practicality and future of crypto payments in the design industry, acknowledging its current fringe status but potential for growth.
Dennis Scully [22:49]: “People need to learn about it, take it more seriously. That's why I'm glad we're talking about it.”
Vegas Market Insights
Dennis shares observations from the recent Vegas Market trade show, illustrating a more optimistic and active environment than anticipated despite ongoing tariff concerns.
Dennis Scully [26:08]: “Everybody was talking about tariffs, but underneath it, they felt like once we get all of this resolved, things are pretty darn good.”
Fred notes that Vegas Market serves a unique role compared to other markets like High Point, catering to a different segment of buyers and maintaining a steady designer-driven presence.
Wall Street Journal Article Debate
The hosts discuss a Wall Street Journal piece by Katherine Brindley on DIY rental apartment makeovers, which sparked a response from designer Chloe Redmond Warner. Chloe argued that design transcends mere inspiration and involves intricate execution, challenging the notion that accessible tools can replace professional design services.
Fred Nikolas [27:22]: “Chloe wanted to emphasize that design is about execution, not just finding the right inspiration images.”
Dennis agrees, highlighting the unappreciated logistical efforts that professional designers undertake to bring visions to life.
Fred Nikolas [30:58]: “10% of the job is artistic, and 90% is logistics and operations.”
Interview with Philippe Desart of Arte
The latter half of the episode features an interview with Philippe Desart, Managing Director of Arte, focusing on their new showroom in the D&D Building, New York.
Arte's Company Profile
Philippe provides a background on Arte, a second-generation, family-owned European company based in Belgium, specializing in high-end wall coverings. The company balances both residential and hospitality contract markets, with a slight tilt towards the latter.
Entering the US Market
Arte has historically struggled to penetrate the US market until recent years, partly attributed to strategic showings at Paris Deco Off and a dedicated showroom presence.
Philippe Desart [33:34]: “We have a showroom in Paris that helped convince American visitors of our products.”
Showroom Strategy and Design
Philippe discusses the challenges of presenting wall coverings effectively, contrasting Arte's innovative "wing systems" with traditional, less engaging displays.
Philippe Desart [43:04]: “We call it our wing systems because you are almost interactive with the product. You flip through it.”
He emphasizes the importance of a flagship showroom to establish brand credibility and inspire designers, acknowledging the significant investment and strategic importance of the D&D Building location.
Philippe Desart [46:42]: “We have a permanent showroom that we pay a lot of attention to, making the space beautiful and inspiring.”
Navigating Tariffs and Market Challenges
Philippe acknowledges the impact of the 15% tariffs and a weakened dollar on Arte's US operations. He anticipates adjusting product offerings to maintain perceived value and emphasizes the necessity of high-quality, innovative products to justify increased costs.
Philippe Desart [53:32]: “Companies are probably going to integrate it [tariffs]. We have to see what will happen.”
He also highlights the importance of exceptional customer service and strong product quality to overcome logistical challenges in a volatile market.
Marketing and Future Outlook
Philippe outlines Arte's multifaceted marketing approach, balancing traditional print media with dynamic social media strategies. He stresses the importance of creating memorable content that resonates with designers and potential clients.
Philippe Desart [57:30]: “You have to think a lot about your strategies. What are you going to do? Which magazine? Why?”
Looking ahead, Philippe remains optimistic about the showroom's role in establishing Arte’s presence in the US, noting that future expansions will depend on the success of the current investment.
Philippe Desart [61:06]: “I'm very happy because we can show who we are to designers and that they get inspired and can work with our products.”
Industry Highlights and News Bites
In the concluding segment, Dennis and Fred highlight notable industry news:
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EJ Victor Closure: EJ Victor has ceased operations following significant losses from North Carolina floods and a subsequent insurance settlement that failed to stabilize the company.
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GDP Report Analysis: The Wall Street Journal criticized the recent strong GDP figures as misleading, attributing the boost to a 30% drop in imports—a record decline akin to the Great Depression era—indicating that tariffs are severely impacting trade.
Dennis Scully [65:20]: “Imports falling by 30% tells you how big an impact the tariffs have really had.”
Fred humorously reminds listeners they won't hear these detailed analyses unless they stay until the end of the episode.
Closing Remarks
Dennis wraps up the show by encouraging listeners to visit businessofhome.com for more insights, job listings, and workshops. He extends gratitude to guests and listeners alike, signing off until the next episode.
Notable Quotes:
- Fred Nikolas [02:42]: “Rarefy is just such an interesting business. They sell vintage furniture, contemporary brands, and do so many different things.”
- Philippe Desart [43:04]: “We call it our wing systems because you are almost interactive with the product. You flip through it.”
- Dennis Scully [65:20]: “Imports falling by 30% tells you how big an impact the tariffs have really had.”
Timestamp Highlights:
- 00:07: Episode kickoff by Dennis Scully.
- 04:33 - 08:30: Detailed discussion on tariffs impacting the interior design and furniture industry.
- 09:54 - 16:24: In-depth analysis of the lawsuit between "Our House" and RH.
- 17:05 - 22:49: Exploration of cryptocurrency's role in real estate transactions and its potential impact on the design industry.
- 32:55 - 61:53: Comprehensive interview with Philippe Desart on Arte's showroom strategies and market challenges.
- 62:01 - 65:26: Final news bites and closing statements.
This episode offers a thorough examination of current challenges and strategic moves within the interior design community, providing valuable insights for professionals navigating tariffs, legal disputes, market expansions, and emerging financial technologies.