May 19th 2012

Project OverviewOAP Report

2

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.

What?

3

Why ?

*(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=2016656

HANDICRAFT WORLD MARKET

USD 100 billion *(d)

High-quality handmade

HANDICRAFTS sold in developed

countries (estimated 5% of TAM)

USD 5 billion

High-quality handmade

HANDICRAFTS sold in developed

countries 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 MARKET

USD 65 billion *(a)

US FAIR TRADE GIFTS

MARKET

USD 1.24 billion *(b)

US FAIR TRADE GIFTS

MARKET sold

through e-commerce

USD 380 million *(c)

estimated doubled for world

market

USD 750 million

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)

- 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.

- 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)

At What Conditions ?

NO

Propension to buy quality handicrafts on internet

YES WITH DEFECT WARRANTY

YES

YES IF RETURNABLE

YES IF ORIGINAL

Propension to buy crafts as a gift for periodic occasions

NO

YES WITHIN BUDGET

< 30$

Gift spending for a close person during periodic occasions

50 – 100 $

100 - 200 $

30 – 50 $

> 200 $

USEFULNESS

Criteria for buying a present during periodic occasions

ORIGINALITY

FUN

BEAUTY

TREND

ETHICS

TECHNOLOGY

GLAMOUR

46.9% (7.5%)

34.8% (48.9%)

2.1% (0.8%)

14.4% (29.8%)

0% (0.7%)

1.3% (3%)

0% (0.7%)

0% (0.7%)

21,3%

2,8%

75,8%

14,2%

32,6%

9,2%

41,7%

16,2%

29,7%

17,2%

34,0%

2,8%

(in parenthesis, attributes assigned to crafts)

5More 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 weddings97.2% 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

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)

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Who Else ?

Unlike World of Good, Artistii does not ask for a fee from sellers

for listings, does not obligate the use of Paypal and handles the

shipping process allowing exposure to smaller artisans.

Artistii also screens for quality control.

Unlike NOVICA, Artistii will have sellers

also from developed countries.

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.