20130616 artistii reloaded opportunity analysis

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Opportunity Analysis for Artistii Reloaded

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20130616 artistii reloaded opportunity analysis

  1. 1. 1OPPORTUNITY ANALYSIS
  2. 2. 2Value PropositionFor Artisans For CustomersArtistii provides me with exposure to aglobal market place and an opportunity toconnect with my customers directly.I can profitably apply my traditionaltechniques and hence display andcontinue my cultural heritage.Artistii allows me to browse through andbuy the most original pieces of art andcrafts from all over the world.At the same time I support artisans inneed and can get in touch with them tolearn about a product’s meaning and theirtraditional ways of producing it.
  3. 3. 3Why is this market attractive?*(a) source: http://www.fastcompany.com/magazine/129/trade-goods.html*(b) source: http://altisgsvc.files.wordpress.com/2008/08/worldofgood_execsum.pdf*(c) source: http://www.quora.com/What-is-the-size-of-the-US-market-for-online-gift-purchases*(d) source: http://ezinearticles.com/?Global-Market-of-Handicrafts&id=2016656HANDICRAFT WORLD MARKETUSD 100 billion *(d)High-quality handmadeHANDICRAFTS sold in developedcountries (estimated 5% of TAM)USD 5 billionHigh-quality handmadeHANDICRAFTS sold in developedcountries through e-commerce(estimated 10-15% of SAM)USD 500 million – 1 billion*fast growing market potential due to increasing use of e-commerce worldwide and increasing interest in sustainable lifestyle.US GIFTWARE MARKETUSD 65 billion *(a)US FAIR TRADE GIFTSMARKET USD 1.24 billion *(b)US FAIR TRADE GIFTSMARKET sold throughe-commerce USD 380 million*(c) estimated doubled forworld market USD 750 millionTotal available market:USD 100 billionServed available market:USD 5 billionTarget Market:USD 750 million
  4. 4. Additional trendsSeasonal, peaking inNovember2005 2013Focus is no longer just USAInterest growing fromRussia, Europe, Asia Pacand Latin Americahttp://www.google.co.uk/trends/explore#q=craft&cmpt=qhttp://www.google.co.uk/trends/explore#q=craft%20handmade&cmpt=q
  5. 5. A very well researched subject!Google Adwords: 124 Million monthly searches:-> 10 times more than Environment and-> 1/2 that of NewsGoogle Adword Monthly searchesSex 506MNews 277MHouse 277MCar 226MCraft 124MApple 83MEnvironment 13MLady Gaga 9MPlumbing 6Mdishwasher 2.7Mgardening 2.7M
  6. 6. UK statistics (2010)23% of the uk population arepotential buyersCraft buyers = 53% are 45+Potential buyers = 59% are 44or less"Buyers are significantlymore likely than potentialbuyers to be motivated bythe ideas and stories behinda piece or its perceivedbeauty"Source: http://www.craftscouncil.org.uk/files/file/73c144804d83bd07/consuming_craft_executive_summary.pdf
  7. 7. 7US Statistics (2011)29.2 billion USDin 2010 for the USMarket onlyWoodcraft, drawingand food craftingdominatehttp://craftandhobby.wordpress.com/2011/04/06/cha-announces-2010-craft-industry-statistics/
  8. 8. 8Who are our customers?Segmentation Type DescriptionGeographic Cosmopolitan areas in developed countriesDemographic At least college-educated, middle to high income individualswith either no kids or older kids (3+ yrs old)Behavioral Purchased craft before but mainly in store or on site and forspecial occasionsPsychographic Open minded, socially aware people that are well travelled,appreciate art and have a rather high status in societyBenefits Value high quality, unique products with an ethical backgroundand a story they can share with friends and acquaintances
  9. 9. 9How do our consumers buy?PostpurchaseRead product/storereviewsConduct online andoffline researchRead productdescriptionsEvaluationProblem RecognitionInformation GatheringPurchase DecisionSatisfactionPrepurchasePurchaseAccessories and ClothingGift Home DecorationGood Quality of ContentsArrived on TimeLoyaltyQualityPrice Availability Fits TastePurchase Online Purchase OfflineEasy Buying ExperienceRepeat Purchases Recommend to friends
  10. 10. 10Our Competitors
  11. 11. 11Competitor ProfilingCompany goal(according to theirwebsites)Artistii connects small scaleartisans with uniqueproduction techniquesinfluenced by culturaltraditions `with globalcustomers. Goal is to offerunique, ethical products andsupport artisans in keepingtraditions alive and survivingfinancially.Novica offers unique,handmade products tocustomers worldwide,and by doing so,it ischanging the lives of thepeople in developingnations who make thesegoods.Etsy connects very smallbusiness owners toconsumers. We prideourselves on bringingheart to commerce andmaking the world morefair, more sustainable, andmore fun.World of good is a socialventure that connectsartisans from developingcommunities withmainstream retailmarkets.ArtFire is an interactiveonline communitydesigned to bringtogether buyers andsellers of artistic goodsfrom around the world.Product portfolio Unique handmade products(in terms of productiontechniques and culturalbackground) created byartisans around the globeUnique handmadeproducts created byartisans inunderdeveloped, remoteareas around the globeOriginal, not overlycommercial productscreated by local artistsmainly in developedcountriesEco- and sociallyresponsible productsranging from clothing tobeauty products andfurnityreOriginal, not overlycommercial productscreated by local artistsin mainly developedcountriesWeaknesses No credibility and brandawareness yet – 2 crucialfactors for ethical businessesSearch function; difficultto apply as a seller; onlystarting to get moresocial and connect user-user/user-artisanShipping is extremelyexpensive, buyerprotection unclear; searchfunction is based on tagsand makes it hard to findwhat you are looking forA bit old-school, more likea traditional one-waycommunicating e-commerce site; strongfocus on US; high logisticcostArtisans need to createtheir own online storeswhich excludes those inremote areas; directcompetition to Etsywhich is already moreestablishedStrengths Logistics; enablingcommunication betweenremote artisans and theircustomers as well as betweencustomersBrand awareness andcredibility due to co-operation with NationalGeographic; local offices;large customer andartisan baseExcellent implementationof social commerce;strong community;extensive contentcreationBrand recognition andhuge portfolio as it iscollaborates and iscobranded with eBayOutstanding customerservice, low listing costfor artisans and largeactive community
  12. 12. 12Interviews and Survey• Key Learnings from Face-to-Face Interviews• More interest in international local cultures than anticipated• Locavore movement (eating local food) seems to be becoming a trend that spreads to crafts andart. Some people however were not interested in knowing more about the background of a craft(story behind it, artist’s bio, history, process of making it). Other’s though were very enthusiasticabout it and were willing to pay more as they saw added value in helping craftsmanship to surviveand supporting artists themselves  we will have to learn how to differentiate between thosetwo groups and only target relevant customers• We need to cater for the interested in the opportunity to connect with craftsmen. Someinterviewees requested an ability to search geographically so they can locate their localcraftsmen.• An obstacle to purchasing crafts online seems to be that people who are most interested aremore tactile and sensory oriented and like to experience a craft to make a connection. In thefuture use of poetic descriptive language and onomatopoeic words can help partially overcomethat.Key Learnings from Face-to-Face Interviews
  13. 13. Survey ResultsInterviews and Survey
  14. 14. Survey ResultsA good fitInterviews and Survey
  15. 15. Survey ResultsInterviews and Survey
  16. 16. Survey ResultsInterviews and Survey
  17. 17. http://goo.gl/ducuV17MORE RESULTS ANDDETAILS ONARTISTII’S VL PAGE:

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