Measures of Dispersion and Variability: Range, QD, AD and SD
E rivegauche final
1.
2. The Hypothesis
People who want to decorate their houses with tasteful and
unique furniture… do not know what exists or where to find it
Furniture galleries do not have the web presence they need
to reach more customers
3. The Idea
The Client Online marketplace
where Galleries can The Art Dealer
showcase their exclusive
inventory to a receptive
audience
The Interior Designer
4. Market size
High End Antique Furniture WW : $4.5B
Marketing Spending by Galleries ~10%
TAM: $450M
↓
US Market 60% (~4,500 dealers): $270M
Target Segment 5%-20% : $13.5M-$54M
Scalable by:
add painting, sculpture
add new geographies…
5. The Team
Agnès – The Founder
Publisher
Interviews San Francisco, Paris
Content expert
Zulma
Real Estate
Interviews New York, Bogota, Columbia University Network,
Competitive research
Christophe
Semiconductor R&D, Business Development, Product Management
Website Development, Tech Support (SalesForce, blog)
Phone Interviews
6. Canvas #1
Key Partners Key Activities Value Customer Customer
Propositions Relationships Segments
• Partner: Editorial • Content Creation
Co-creation • Profiling Feature • Match Making • Automated Services Consumers:
• Supplier: • Data Management • Alternative solution • Customer Help Collectors; Affluent
Photographers • Targeted Mailing to market leader • Customer Feedback Art Enthusiast
• Suppliers: Editorial 1stdibs
Content • Cheaper Solution Business Users:
• Partner: Media
• Educate Interior Designers
• Partners: Art Fairs
Key Resources Consumer Channels Payers: Art
• Customization Galleries/Dealers
• Customer Liaison based on Interest • Editorial Content
• Content Editor • Piece Selection • Media Endorsement • Scope: Vintage
• Webmaster • Convenience • Internet: Furniture 20th and
• Web Analytics • Search Accuracy eRiveGauche.com 21st centuries
• Search Engine
Cost Structure Revenue Streams
• website support (fixed) • Pay for: Dynamic Pricing via Auction (advertising)
• Feature development (fixed) • Pay for: Featured search results
• Traffic acquisition (variable) • Pay for: Target Campaigns
• Content Creation (variable) • Value: Incremental Sales/Visibility
• Photography & Processing (variable)
• Website Hosting/Outsourcing (variable)
7. So here’s what we did
23 face-to-face Galleries’ Interviews in NYC and San Francisco
5 interviews with partners and super-wealthy end-users
San Francisco NYC
Coup d'Etat
Provasi Jason Jacques Gallery
Monument Doris Leslie Blau LLC
Sloan Miyasato Nicholas Antiques
Daniel Stein Antiques Antiqueria Tribeca
Lost Art Salon Elle W Collection Dual NYDC
Insite Antiques Conjeaud and Chappey
Amarcord Sebastian + Barquet
De Souza Hughes R 20th Century
Donghia Metropolis Modern
Kravet Showplace Antique + Design Center
Kneedler@Fauchère Saint-Germain Antiques
Moder Magazine (Partner)
Sotheby's Home (End-users and
Partner)
Sonance (Partner)
And 2 private collectors
9. So here’s what we found
End-Users Galleries
End Users go and look on 1stdibs for ideas
(but eventually get cheaper alternatives) Most of 1stdibs clients are happy with the service
US End-Users rely on Interior Designers. offered (it increases sales, it operates smoothly,
“platinum club”)
Interior Designers
The fees charged are not an issue
Mid-level Interior Designers and Decorators
Most of them had to wait over a year to be accepted
1stdibs clients – Individuals or Small into the webpage
companies
Nevertheless, some complained about declining
Need search accuracy and efficiency efficiency, overwhelming and disparate pieces on
Top tier Interior Designers (stardom) display.
They look for trends and have pieces and several High-End galleries voiced their need
custom made for a more exclusive online marketplace
Influencers – Can create a new trend
Interior Designers are not Curators
11. Second Block
First Pivot
High-End Interior Designers
12. Canvas # 2
Key Partners Key Activities Value Customer Customer
Propositions Relationships Segments
• Partner: Editorial • Content Creation
Co-creation • Profiling Feature • Match Making • Automated Services Consumers:
• Supplier: • Data Management • Alternative solution • Customer Help Collectors; Affluent
Photographers • Targeted Mailing to market leader • Customer Feedback Art Enthusiast
• Suppliers: Editorial 1stdibs
Content • Cheaper Solution • Business Users:
• Partner: Media
• Educate Interior Designers
• Partners: Art Fairs
Key Resources Consumer Channels
• Customization •Top Tier Art
• Customer Liaison based on Interest • Editorial Content Gallery/Dealer:
• Content Editor • Piece Selection • Media Endorsement Demand for a high-
• Webmaster • Convenience • Internet: end only platform
• Web Analytics • Search Accuracy eRiveGauche.com
• Search Engine • Complementary Payers: Art
Solution to market Galleries/Dealers
leader 1stdibs
• Scope: Vintage
Furniture 20th and
21st centuries
Cost Structure Revenue Streams
• website support (fixed) • Pay for: Dynamic Pricing via Auction (advertising)
• Feature development (fixed) • Pay for: Featured search results
• Traffic acquisition (variable) • Pay for: Target Campaigns
• Content Creation (variable) • Value: Incremental Sales/Visibility
• Photography & Processing (variable)
• Website Hosting/Outsourcing (variable)
13. Second Hypothesis
Focus on High End Galleries and High End Interior
Designers
High End High End
Designers Galleries
Low to Low to
Middle Middle
End End Competitor : 1st Dibs
Interior Galleries
Designers
High End Galleries cater to High End Designers
High End Galleries want a differentiated Internet Presence and are
interested in our proposal
14. So here’s what we did
We interviewed with more Face-to-face contacts during
Interior Designers International Trade Shows
Bernard Le Corre – Trianon Almond&Harzog
Christies - Paris R20th century
Christine Girondeau Ma(i)sony
Florence Attenger Hedge
Galerie Jacques Lacoste Noho Modern
We interviewed with more High We interviewed with High End Furniture
End Art galleries Manufacturers
Les Barbares Christian Liaigre
Carpenter We visit the competition’s marketplace
Kreo in NYC
We created list of 200 American Interior
designers for future online survey
15. So here’s what we found
Two types of Designers
1.Low to Middle End: “Catalog Designers” (1stdibs users)
2.High End:
• Do not trust Internet (copies and forgeries)
• Need validation of quality (touch and feel)
• Need availability ahead of time (made to order)
High End Furniture Manufacturers:
• Do not trust Internet (fear of amalgams)
Value proposition to only one side of the equation:
High End Galleries have confirmed their interest
High End Designers want to travel and meet suppliers
(No Desire for Internet Tool)
17. Third Block
Second Pivot
The International Market
18. Canvas # 3
Key Partners Key Activities Value Customer Customer
Propositions Relationships Segments
• Partner: Editorial • Content Creation
Co-creation • Profiling Feature • Match Making • Automated Services Consumers:
• Supplier: • Data Management • Alternative solution • Customer Help Collectors; Affluent
Photographers • Targeted Mailing to market leader • Customer Feedback Art Enthusiast
• Suppliers: Editorial 1stdibs
Content • Cheaper Solution • Business Users:
• Partner: Media
• Educate Interior Designers
• Partners: Art Fairs
Key Resources Consumer Channels •Top Tier Art
• Customization Gallery/Dealer:
• Customer Liaison based on Interest • Editorial Content Demand for a high-
• Content Editor • Piece Selection • Media Endorsement end only platform
• Webmaster • Convenience • Internet:
• Web Analytics • Search Accuracy eRiveGauche.com Payers: Art
• Search Engine • Complementary Galleries/Dealers
Solution to market
leader 1stdibs • Scope: Vintage
Furniture 20th and
21st centuries
Cost Structure Revenue Streams
• website support (fixed) • Pay for: Dynamic Pricing via Auction (advertising)
• Feature development (fixed) • Pay for: Featured search results
• Traffic acquisition (variable) • Pay for: Target Campaigns
• Content Creation (variable) • Value: Incremental Sales/Visibility
• Photography & Processing (variable)
• Website Hosting/Outsourcing (variable)
19. Third Hypothesis
Focus on the European Market
European European
Interior Vintage
Designers Galleries
US creators underrepresented in European Galleries
Need for Online marketplace
Focus on Emerging Markets
Emerging Emerging
markets markets
Interior Vintage
Designers Galleries
Emerging Markets Galleries want Internet Presence and
are interested in our proposal
20. So here’s what we did
• We met with industry experts to better understand the ecosystem around
design :
Lloyd Princeton president of Design Management Co.
Annelien Bruins director of Private Collections Consultancy
Architect Yves Ghiai
Interior Designer Oriane Olshanski
• We did research on global competitors
• Face to face interviews at Internal Fine Art and Antique dealer show in NYC :
Mallett
AA Anne Autegarden
Jane-Kahan Gallery
Bernard Goecker
• We interviewed experts familiar with the Parisian art scene and galleries :
Partner Zephyr
Daun Frankland - Paris at My Feet
Founder of idbaazar.com
21. So here’s what we found
French website showing pieces from 700 galleries around the
…exactly our same business model in 2nd pivot
Lost $500,000 of his own money. Site currently in zombie-land
Idbazaar Founder learning's
1) Traffic is the key point : would now rather invest in ad words and media
ads.
2) Interest does not mean revenue stream from the galleries
3) Spent $300,000 of his own money in unnecessary fixed
costs
22. So here’s what we found
Crowed competition on both US and EU markets
(and more…)
23. So here’s what we found
American Designers underrepresented within the European market
No, Modern Design is a manufacturer world and the information circulates freely,
so education is not a problem, but French customers show little attraction for
American vintage design.
European Market is already covered
French market has not embraced indirect sales/marketing as much as other
countries French consumers like to see, touch and feel.
Are more interested in the “decorative arts” than in “design”
Emerging countries as a market
Confirmation that emerging countries are now shopping for western art and
design (including pricey pieces)… But logistics, language and cultural barriers are
tough
Investors start to believe in Online Marketplace for Art
•Round A for 1stDibs (Benchmark Capital) and a new CEO
•Art.sy : Team of 18 people, Gallery Network in Progress. Already raised >$7.5M
25. Canvas # 4
Key Partners Key Activities Value Customer Customer
• Partner: Editorial • Content Creation Propositions Relationships Segments
Co-creation • Profiling Feature • Convenience • Automated Services • Scope: Vintage
• Supplier: • Data Management • Search Accuracy • Customer Feedback Furniture 20th and
Photographers • Targeted Mailing • Cheaper Solution 21st centuries
• Educate Consumer
• Suppliers: Editorial • Consumer: Collectors;
Content • Piece Selection Affluent Art Enthusiast
• Galleries are not satisfied by • Payers: Art
• Partner: Media 1stdibs services
• Partners: Art Fairs • Alternative solution to market Galleries/Dealers
leader 1stdibs • Top Tier Art
Key Resources • Match Making Channels Gallery/Dealer:
• Customer Liaison • Editorial Content demand for a high-
• Content Editor • Media Endorsement end only platform
• Webmaster • Internet: • US Consumers:
• Web Analytics eRiveGauche.com Collectors; Affluent
• Search Engine Art
EnthusiastEuropean
end-users
• US
Galleries/dealers
are looking for more
visibility in Europe.
Cost Structure Revenue Streams
• website support (fixed) • Pay for: Dynamic Pricing via Auction (advertising)
• Feature development (fixed) • Pay for: Featured search results
• Traffic acquisition (variable) • Pay for: Target Campaigns
• Content Creation (variable) • Value: Incremental Sales/Visibility
• Photography & Processing (variable) • High-end Galleries are willing to pay subscription fees ($2,500 per
• Website Hosting/Outsourcing (variable) month)
26. Fourth Hypothesis
Art for Rent
• Galleries have inventory in warehouses they have no space to
display
• Renting these pieces can generate steady cash flow
• Original art rentals let you try out a piece of arts before buying it.
What about Museums?
Would it be possible to rent unexposed arts from major
Museum? – Generate cash flow for subvention-starved Museums
27. Canvas # 5 : New B.M.C
Key Partners Key Activities Value Customer Customer
Propositions Relationships Segments
• Partner: Galleries • Content Creation
• Partner: Artists • Profiling Feature • Cost-Risk reduction • BtoC • Payers: BtoB
• Partner: Media • Data Management • Accessibility • Automated Services Small and Medium
• Partners: Art Fairs • Targeted Mailing • Convenience/Usabil Companies with
• Partners: Museums • Logistics ity • BtoB intelligence
• Acquisition? • Brand/Image • Dedicated personal (Marketing,
• Trading? • Educate Consumer assistance Services, Software,
• Piece Selection • Customer Help Content,
• Newness • Customer Feedback Advertising,
• Customization Lawyers…)
Key Resources based on Interest Channels
• Liquidity-Flexibility • Payers: BtoC
• Customer Liaison • Editorial Content Collectors
• Content Editor • Media Endorsement Individuals
• Webmaster • Internet: Artflix.com
• Web Analytics • Business Users:
• Search Engine Galleries and artists
• Business Users:
Museums
Cost Structure Revenue Streams
• website support (fixed) • Subscription fees
• Feature development (fixed) • BtoC: $50-$100 per month
• Traffic acquisition (variable) • BtoB: depends on the size of the company. $500 per month.
• Content Creation (variable)
• Logistics (variable)
• Website Hosting/Outsourcing (variable)
• Insurance (Variable)
• Arts pieces acquisition
28. So here’s what we did
Inputs from the “Le Louvre” Museum
French Laws (since 1566) forbid public museum to sell their inventory or to
loan/rent to private entities (Any loan must be visible to the general public).
Cost of Insurance unaffordable for major pieces
Few quality pieces in warehouses
Icom
SFMOMA Gallery
Ajga Partners
Isobar
Saatchi&Saatchi
Mambo Bogota
Contacted a Private Collections Consultant
Collectors want to OWN their art: Renting has no prestige
Still Working the Gallery Angle….
Agnes is leveraging her learning from the class to explore the business
potential of renting Arts (not museum-quality) to Businesses and Individuals.
30. About the business About the process
And all our findings contradicted our initial assumptions
We learned about : We experienced that :
• The Furniture Design Ecosystem • Good friends do not always make good
• How Interior Designers Work business partners (but can still be friends)
• How Galleries Operate
• Purchasing pattern of the End- • Founders can disregard external feedbacks that
Users would disprove their assumptions (at least
• The Art Market in the US and initially)
abroad Don’t drink the same Kool-Aid!
• The development of the online offer
for Arts • People can easily lose their shirt by going full
• How Museums manage their speed…. into nowhere…
inventories The pitfalls of building before validating
• Psyche of Art Collectors
• Going out of the building (and ones comfort
zone) gets easier with practice
No more: “these people are very busy and they
All this for an initial are difficult to reach” – Just Do It
investment of $7,500 • A good interview triggers many high quality new
(and many hours) leads
• Teaches agility : Get inputs, validate, and adjust!