3. Social Commerce for Digital Art
Our Idea:
An online marketplace for on-demand
custom digital art. The site connects
talented artists around the world with
consumers seeking to buy simple custom
digital art via a website & mobile app.
4. Learning from Customer Feedback
Through interviews & surveys, we tested the
viability of our product by:
1. Identifying the key problems weʼre trying to solve
with our product
2. Identifying the target customer segment that has
these key problems
3. Presenting our product and tracking whether this
solves their problems and who would be interested
in buying our product
4. Learning what features are most important to our
customers
5. Customer Survey
We interviewed a total 170+ people in a span
of 4 days. For each participant we recorded
demographic data such as: age, gender,
country, relationship status, etc.
This allowed us to later identify the customer
segment that was the most interested in our
product.
6. Customer Survey
Validating our Problems:
2 out of 3 of our hypothesized customer problems
proved to be true for the majority of our participants.
32% agreed- Buying someone a gift that you think
theyʼll like is difficult
42% agreed- They have a hard time finding art they
like
19% agreed- They have a hard time trying to find an
interesting profile picture
7. Customer Survey
Validating Value proposition:
Overall, a significant number of our participants were
interested in our product.
30% are interested in buying custom art for
themselves
39% are interested in buying custom art as a gift for
someone
25% entered their email to be notified when our
product launches
8. Customer Survey
Discovering our Key Customer Segment:
Large percentages of participants Aged 35+ expressed they
had all three of our hypothesized problems
Ages 35+ expressed the most interest in buying product for
themselves and/or someone else.
The majority of people that entered their email to be notified
when our product launches was 35+.
9. Market Size Analysis
We calculated our Market Size based on learning from our surveys that our
target customer segment will be woman 35years old +
Since our product is an Online Social Marketplace, our target users will need
to be on a Social Network. We used demographic data from Facebook, the
worlds largest social network, to size our total market size:
✓ Target customer segment from survey results (woman - 35years old +)
✓ Facebook Data - Age and gender Statistic
Results:
Woman 35+ US = 42.4M Facebook users
Woman 35+ Brazil =10.78M Facebook users
Total Market Size: 53.18M users
Source:
http://www.quintly.com/facebook-country-statistics/brazil?period=3month
10. 10
Market Size Analysis
Woman - 35years old + (Results from our Survey)
‐ Based on the survey, 67% of woman in this age more
likely to be interested to order our product/service.
53M x 67% = 35M Facebook user (Women, 35+)
‐ 30% interested to buy custom art for themselves = 35M x
30% = 10.5M
‐ 70% interested to buy custom art for friends = 35M x
70%
= 24.5M
11. 11
Market Size Analysis
Custom Art Market Size in dollar - online market
Pricing: researching the market of digital photography such as: Shutterfly,
Fiverr, etc... we built our price of custom art for digital purpose or for gifts:
‐ Digital Art $5
‐ Gifts ($15-$100), average estimate $45 :
• wall decor - $85
• wall decals - $65
• Ornaments - $15
• Blankets $65
• Mugs $15
• Mobile Cover = $15
• T-shirt = $35
• Pillow $45
12. 12
Market Size Analysis
Custom Art Market Size in dollar - online market
‐ 30% interested in custom art for themselves (digital
art) = 10.5M users x 5$ = $52.5M
‐ 70% interested in custom art for friends (gift) =
24.5M users x $45 = $1.10B
OUR TOTAL MARKET SIZE IN DOLLARS = 1.15B
Our market share represents 1.3% of the currently
global online art sales. Reference on next page.
13. 13
Global Online Art Sales
The market share of online art sales are estimated using the overall finding from IBIS
World ʻOnline Art Sales in the US: Market Research Reportʼ 2011, which estimated the
market to be $287 million in 2011. If we combine this with the overall market size ($17.4
billion) of the US art market in 2011 according to the TEFAF report, then online art sales
accounts for 1.6% of the overall US art market. Although there will be regional differences,
to provide an estimate for the global online art sales online we have used the same
percentage (1.6%), which gives us a global online sales estimate of $870 million (based on
global art market size of $56 billion in 2012 according to the recently published TEFAF
report).
In terms of estimated annual growth rate of the online art market, we have used 19% to
arrive at an estimated online art market sales figure for 2016. This is the same growth rate
used in rapidly growing online luxury goods market, according to the last report by
Mckinsey Altagama ʻDigital Luxury Experienceʼ 2012. They estimate the overall online
luxury goods market to grow from $4.9 billion in 2010 to $15 billion in 2016, representing
5.3% of the overall luxury good market estimate of $287 billion.Sources: Size of the global
art market TEFAF Report 2013, March 2013
http://www.hiscox.com/~/media/Files/H/Hiscox/content-pdf/Online-Art-Trade-Report-UPDATED-
FINAL.pdf
( - Page 6)
