For business insiders, Los Angeles raises a question: what do Lily Rose Depp, Jake Gyllenhaal, Dakota Johnson, and Miley Cyrus share in common? Fame and entertainment are correct, but did you know they are an excellent customer profile for high-end grocery shopping? Here enters Erewhon, an exclusive supermarket chain based in LA. Unit-E has not tried Erewhon's products, but we admire their marketing success. Let us show you what we learned:
Erewhon is the most famous for is its prices. One smoothie is 18 dollars, a bottle of water is 26 dollars, and a jar of hot sauce is 40 dollars. Influencers and celebrities flood the supermarket, resulting in viral jokes on social media. However, bad publicity is still publicity. A skeptic buying one slice of lettuce to expose Erewhon is still income and profit.
Psychologically, high prices cultivate an air of exclusivity, making customers feel special. Buying Erewhon’s products means choosing to belong in a glamorous, cool in-crowd, establishing a sense of social superiority. High prices also stratify customers, as lower financial brackets simply cannot afford Erewhon. Therefore, shoppers ambling around the store enjoy a luxury reserved for the upper class’s fascinating mystique.
Erewhon’s second strategy is justifying its high price. We probably can’t criticize Erewhon for advertising organic, fresh, and quality produce that is generally expensive in the United States. Moreover, Erewhon’s personalized service system and aesthetically pleasing, spiritually calming atmosphere are unparalleled by typical supermarkets with busy halls, jam-packed lines, and grumpy cashiers. Commercially, “rare” and “unique” means demand exceeds offer, so prices rise. Finally, Erewhon doesn’t just sell green juices and gourmet strawberries, but ideals, experiences, communities, and identities through green juices and gourmet strawberries. Customers buy the idea of a high quality lifestyle, which is more expensive than one box of fruit.
How does Erewhon sell its idea? Well, it researches trends. In recent years, businesses capitalize on romanticized notions of “health” and “self-care”, notable examples being Goop and Sporty & Rich. Erewhon encourages customers to enjoy grocery shopping as a form of self-care, instead of treating it as a chore. It looks chic, feels energetic, smells and tastes good. If one affords it, why not?
Lastly, Erewhon targets a specific customer group and ensures its loyalty. Most Erewhon shoppers are wealthy, health–conscious, image–conscious LA residents. Many who fit these descriptions are stylish actors, off-duty models, and nepotism babies whose professions rely on personal branding, consumption curation, social media presence, and physical appearance. Erewhon then makes the KEY DECISION to make their own customers, who have MASS influence, endorse their brand.
Countless celebrities released collaboration products with Erewhon. One of the first was Hailey Bieber. After launching her skincare brand, Rhode, she launched a "Strawberry Glaze Skin Smoothie" under Erewhon, featuring skin-friendly ingredients like collagen, hyaluronic acid, and sea moss gel. Honestly, Unit-E has never heard of some other ingredients like buckthorn, Camu Camu, and charcoal powder. Could they start our health and fitness journeys? If you ever try them, please tell us....
Credits:
Writing: Margaret Yang, Helen Wang
Photography: RD Collaborative
Congratulations Margaret for writing our first article!