E rivegauche final

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

The ClientThe Art Dealer

Online marketplace

where Galleries can

showcase their exclusive

inventory to a receptive

audience

The Idea

The Interior Designer

Market size

High End Antique Furniture WW : $4.5B

Marketing Spending by Galleries ~10%

TAM: $450M

↓

US Market 60% (~4,500 dealers): $270MTarget Segment 5%-20% : $13.5M-$54M

Scalable by: add painting, sculptureadd new geographies…

The Team

Agnès – The FounderPublisher

Interviews San Francisco, Paris

Content expert

ZulmaReal Estate

Interviews New York, Bogota, Columbia University Network,

Competitive research

ChristopheSemiconductor R&D, Business Development, Product Management

Website Development, Tech Support (SalesForce, blog)

Phone Interviews

Key Partners

• Partner: Editorial

Co-creation

• Supplier:

Photographers

• Suppliers: Editorial

Content

• Partner: Media

• Partners: Art Fairs

Key Activities

• Content Creation

• Profiling Feature

• Data Management

• Targeted Mailing

Value

Propositions

• Match Making

• Alternative solution

to market leader

1stdibs

• Cheaper Solution

• Educate

Consumer

• Customization

based on Interest

• Piece Selection

• Convenience

• Search Accuracy

Customer

Relationships

• Automated Services

• Customer Help

• Customer Feedback

Customer

Segments

Consumers:

Collectors; Affluent

Art Enthusiast

Business Users:

Interior Designers

Payers: Art

Galleries/Dealers

• Scope: Vintage

Furniture 20th and

21st centuries

Key Resources

• Customer Liaison

• Content Editor

• Webmaster

• Web Analytics

• Search Engine

Channels

• Editorial Content

• Media Endorsement

• Internet:

eRiveGauche.com

Cost Structure• website support (fixed)

• Feature development (fixed)

• Traffic acquisition (variable)

• Content Creation (variable)

• Photography & Processing (variable)

• Website Hosting/Outsourcing (variable)

Revenue Streams• Pay for: Dynamic Pricing via Auction (advertising)

• Pay for: Featured search results

• Pay for: Target Campaigns

• Value: Incremental Sales/Visibility

Canvas #1

23 face-to-face Galleries’ Interviews in NYC and San Francisco

5 interviews with partners and super-wealthy end-users

San Francisco NYC

So here’s what we did

Jason Jacques Gallery

Doris Leslie Blau LLC

Nicholas Antiques

Antiqueria Tribeca

Elle W CollectionDualNYDC

Conjeaud and Chappey

Sebastian + Barquet

R 20th Century

Metropolis Modern

Showplace Antique + Design Center

Saint-Germain Antiques

Coup d'Etat

Provasi

Monument

Sloan Miyasato

Daniel Stein Antiques

Lost Art Salon

Insite Antiques

Amarcord

De Souza Hughes

Donghia

Kravet

Kneedler@Fauchère

Moder Magazine (Partner)

Sotheby's Home (End-users and

Partner)

Sonance (Partner)

And 2 private collectors

Most of 1stdibs clients are happy with the service

offered (it increases sales, it operates smoothly,

“platinum club”)

The fees charged are not an issue

Most of them had to wait over a year to be accepted

into the webpage

Nevertheless, some complained about declining

efficiency, overwhelming and disparate pieces on

display.

and several High-End galleries voiced their need

for a more exclusive online marketplace

Interior Designers

Galleries

So here’s what we found

Mid-level Interior Designers and Decorators

1stdibs clients – Individuals or Small

companies

Need search accuracy and efficiency

Top tier Interior Designers (stardom)

They look for trends and have pieces

custom made

Influencers – Can create a new trend

Interior Designers are not Curators

End Users go and look on 1stdibs for ideas

(but eventually get cheaper alternatives)

US End-Users rely on Interior Designers.

End-Users

Operational Website by Block 2

Second Block

First Pivot

High-End Interior Designers

Key Partners


Co-creation

• Supplier:

Photographers


Content

• Partner: Media


Key Activities



• Data Management


Value

Propositions

• Match Making


to market leader

1stdibs


• Educate

Consumer

• Customization

based on Interest

• Piece Selection

• Convenience

• Search Accuracy

• Complementary

Solution to market

leader 1stdibs

Customer

Relationships


• Customer Help


Customer

Segments

Consumers:


Art Enthusiast

• Business Users:

Interior Designers

•Top Tier Art

Gallery/Dealer:

Demand for a high-

end only platform

Payers: Art

Galleries/Dealers

• Scope: Vintage

Furniture 20th and

21st centuries

Key Resources


• Content Editor

• Webmaster

• Web Analytics

• Search Engine

Channels



• Internet:

eRiveGauche.com











Canvas # 2

High End Galleries cater to High End Designers

High End Galleries want a differentiated Internet Presence and are

interested in our proposal

Low to

Middle

End

Interior

Designers

Low to

Middle

End

Galleries

High End

Designers

High End

Galleries

Second Hypothesis

Competitor : 1st Dibs

Focus on High End Galleries and High End Interior

Designers

We interviewed with more

Interior Designers

Bernard Le Corre – Trianon

Christies - Paris

Christine Girondeau

Florence Attenger

Galerie Jacques Lacoste

We interviewed with more High

End Art galleries

Les Barbares

Carpenter

Kreo

Face-to-face contacts during

International Trade Shows

Almond&Harzog

R20th century

Ma(i)sony

Hedge

Noho Modern

We interviewed with High End Furniture

Manufacturers

Christian Liaigre

We visit the competition’s marketplace

in NYC

We created list of 200 American Interior

designers for future online survey


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)


Fully Operational Website with CMS by Block 3

Third Block

Second Pivot

The International Market

Key Partners


Co-creation

• Supplier:

Photographers


Content

• Partner: Media


Key Activities



• Data Management


Value

Propositions

• Match Making


to market leader

1stdibs


• Educate

Consumer

• Customization

based on Interest

• Piece Selection

• Convenience

• Search Accuracy

• Complementary

Solution to market

leader 1stdibs

Customer

Relationships


• Customer Help


Customer

Segments

Consumers:


Art Enthusiast

• Business Users:

Interior Designers

•Top Tier Art

Gallery/Dealer:

Demand for a high-

end only platform

Payers: Art

Galleries/Dealers

• Scope: Vintage

Furniture 20th and

21st centuries

Key Resources


• Content Editor

• Webmaster

• Web Analytics

• Search Engine

Channels



• Internet:

eRiveGauche.com











Canvas # 3

Emerging Markets Galleries want Internet Presence and

are interested in our proposal

European

Interior

Designers

European

Vintage

Galleries

Third Hypothesis

Focus on the European Market

Emerging

markets

Interior

Designers

Emerging

markets

Vintage

Galleries

Focus on Emerging Markets

US creators underrepresented in European Galleries

Need for Online marketplace

• 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


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


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

Idbazaar Founder learning's

Crowed competition on both US and EU markets

(and more…)


American Designers underrepresented within the European marketNo, 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 coveredFrench 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 marketConfirmation 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


Forth Block

Third Pivot

Art for Rent

Key Partners• Partner: Editorial

Co-creation

• Supplier:

Photographers


Content

• Partner: Media


Key Activities• Content Creation


• Data Management


Value

Propositions• Convenience

• Search Accuracy• Cheaper Solution

• Educate Consumer

• Piece Selection• Galleries are not satisfied by

1stdibs services

• Alternative solution to market

leader 1stdibs

• Match Making

Customer

Relationships• Automated Services


Customer

Segments• Scope: Vintage

Furniture 20th and

21st centuries• Consumer: Collectors;

Affluent Art Enthusiast

• Payers: Art

Galleries/Dealers

• Top Tier Art

Gallery/Dealer:

demand for a high-

end only platform

• US Consumers:


Art

EnthusiastEuropean

end-users

• US

Galleries/dealers

are looking for more

visibility in Europe.

Key Resources• Customer Liaison

• Content Editor

• Webmaster

• Web Analytics

• Search Engine

Channels• Editorial Content


• Internet:

eRiveGauche.com











• High-end Galleries are willing to pay subscription fees ($2,500 per

month)

Canvas # 4

• 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

Fourth Hypothesis

Art for Rent

Canvas # 5 : New B.M.CKey Partners

• Partner: Galleries

• Partner: Artists

• Partner: Media


• Partners: Museums

Key Activities



• Data Management


• Logistics

• Acquisition?

• Trading?

Value

Propositions

• Cost-Risk reduction

• Accessibility

• Convenience/Usabil

ity

• Brand/Image

• Educate Consumer

• Piece Selection

• Newness

• Customization

based on Interest

• Liquidity-Flexibility

Customer

Relationships

• BtoC


• BtoB

• Dedicated personal

assistance

• Customer Help


Customer

Segments

• Payers: BtoB

Small and Medium

Companies with

intelligence

(Marketing,

Services, Software,

Content,

Advertising,

Lawyers…)

• Payers: BtoC

Collectors

Individuals

• Business Users:

Galleries and artists

• Business Users:

Museums

Key Resources


• Content Editor

• Webmaster

• Web Analytics

• Search Engine

Channels



• Internet: Artflix.com

Cost Structure

• website support (fixed)




• Logistics (variable)


• Insurance (Variable)

• Arts pieces acquisition

Revenue Streams

• Subscription fees

• BtoC: $50-$100 per month

• BtoB: depends on the size of the company. $500 per month.

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.


Key Learnings

About the business

We learned about :

• The Furniture Design Ecosystem

• How Interior Designers Work

• How Galleries Operate

• Purchasing pattern of the End-

Users

• The Art Market in the US and

abroad

• The development of the online offer

for Arts

• How Museums manage their

inventories

• Psyche of Art Collectors

And all our findings contradicted our initial assumptions

We experienced that :

• Good friends do not always make good

business partners (but can still be friends)

• Founders can disregard external feedbacks that

would disprove their assumptions (at least

initially)

Don’t drink the same Kool-Aid!

• People can easily lose their shirt by going full

speed…. into nowhere…

The pitfalls of building before validating

• Going out of the building (and ones comfort

zone) gets easier with practice

No more: “these people are very busy and they

are difficult to reach” – Just Do It

• A good interview triggers many high quality new

leads

• Teaches agility : Get inputs, validate, and adjust!

All this for an initial

investment of $7,500(and many hours)

About the process

E rivegauche final

Education

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