2. What?
What ?
- Provide access to the most original pieces of art and
crafts all over the world, at a fair price through an e-
commerce site.
- Let small manufacturers get exposure and protect their
cultural and artistic differences by giving them access to the
worldwide market.
- Handle services for sellers that are difficult for individuals:
payment, shipping, and especially returns.
- Besides categorization and a search engine, the seller
himself gets exposed on a personal page gathering all
his products, allowing a kind of self branding.
- Social features, so that conversation can rise among
art enthusiasts, and this can become very trendy. The
customer could optionally even expose his own
purchases, to show his personal tastes.
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3. Why ?
HANDICRAFT WORLD MARKET US GIFTWARE MARKET
USD 100 billion *(d) USD 65 billion *(a)
High-quality handmade US FAIR TRADE GIFTS
HANDICRAFTS sold in developed MARKET
countries (estimated 5% of TAM) USD 1.24 billion *(b)
USD 5 billion
High-quality handmade US FAIR TRADE GIFTS
HANDICRAFTS sold in developed MARKET sold
countries through e-commerce through e-commerce
(estimated 10-15% of SAM) USD 380 million *(c)
USD 500 million – 1 billion estimated doubled for world
market
USD 750 million
*buyers of products sold on this e-commerce site are most likely e-literate people in developed
countries from age 30-60 interested in finding original handmade limited production crafts.
*fast growing market potential due to increasing use of e-commerce worldwide and increasing interest
in sustainable lifestyle.
*(a) source: http://www.fastcompany.com/magazine/129/trade-goods.html
*(b) source: http://altisgsvc.files.wordpress.com/2008/08/worldofgood_execsum.pdf 3
*(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=2016656
4. To Whom?
- Sellers in developed countries will be likely the first sellers base, most likely
little passionate craftsmen and artists in developed countries reached by
internet but currently without valid selling platforms.
- Non-developed sellers are individual craftsmen in non-developed countries
who have minimal e-literacy but very original production, or their local
agents (e.g. local market representatives with sufficient e-literacy)
- Commissions from sellers will be the main source of revenue. Payments for
each order will be handled directly by Artistii who will then periodically send
to the craftsmen their part after our commission, shipping costs and
payment costs.
- Advertisements from companies who wish to target the fair trade market.
(optional—potential additional revenue stream)
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5. At What Conditions ?
141 potential buyers were surveyed to understand better their buying habits and interest in products similar
to those that would be offered on the Artistii.com e-commerce site
(the group consisted of mostly EU residents with e-literacy, average age 39.8 years, 43.7%male/52.3%female)
Propension to buy quality Propension to buy crafts as a gift Criteria for buying a present Gift spending for a close person
handicrafts on internet for periodic occasions during periodic occasions during periodic occasions
(in parenthesis, attributes assigned to
crafts)
USEFULNESS 46.9% < 30$ 16,2%
NO 14,2% YES IF
21,3% (7.5%)
ORIGINAL
BEAUTY 14.4% (29.8%)
30 – 50 $ 34,0%
YES IF ORIGINALITY 34.8%
41,7% (48.9%)
RETURNABLE
YES
FUN 2.1% (0.8%)
WITHIN 75,8% 50 – 100 $ 29,7%
BUDGET
YES WITH TREND 0% (0.7%)
DEFECT 32,6%
WARRANTY 100 - 200 $ 17,2%
ETHICS 1.3% (3%)
NO 2,8%
YES 9,2% TECHNOLOGY 0% (0.7%)
> 200 $ 2,8%
GLAMOUR 0% (0.7%)
More than 95% would buy crafts for gifts and weddings, and 20-25% would even go beyond their budget if the piece is original.
The criteria for buying a craft as a present match very well also: 59.5% for periodic occasions and 43.4% for weddings 5
97.2% would also buy crafts for personal home decor, with 27.6% willing to pay a premium if the item is really original
Ethics (fair commerce) is not a main motivator for buying, but we asked to select only one main criteria
6. Who Else ?
Unlike World of Good, Artistii does not ask for a fee from sellers Unlike NOVICA, Artistii will have sellers
for listings, does not obligate the use of Paypal and handles the also from developed countries.
shipping process allowing exposure to smaller artisans.
Artistii also screens for quality control.
Unlike Etsy, Artistii will sell only handmade products from natural materials (not industrial) and ethnic
characterization that are selected, with greater emphasis on the artistic/cultural value of the item.
**Unlike all our competitors, Artistii hopes to focus strongly on the social aspect of the site bringing
people to talk about their interest in handicrafts and hoping to open other channels.
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