Sommersemester 2019 - niew:art - Student Start-up Project
Niew:art is an online-first marketplace that connects young, talented artists with art-lovers who are looking for affordable, unique decoration for their homes.
We provide artists with a valuable network, increased visibility and a new source of hustle-free income. We meet buyers' demand for unique flat-art as decoration that is priced fairly, taking a commission of 25% on each transaction.
Niew:art enters a market that is currently shifting from offline to online. The market for online art sales is large (2018: USD 4.6bn) and growing at a high pace (~10% CAGR 2014-2018).
Value proposition, market & target customer
Currently there are 4,500 art students in Austria. However, only a handful find art galleries to support and distribute their art after their studies. As a result, the majority of artists struggle to make a living and are forced into other non-art related side-occupations. Niew:art offers these talented artists a new way to earn money and build a network by increasing their exposure in the market. The Austrian market serves as initial source of supply and first test market.
The rapidly growing online art market provides a business opportunity for the niche that niew:art is targeting: Young professionals seek unique art as decoration for their homes but currently do not have an option to buy affordable and unique pieces of art. Right now, they either need to increase their budget and buy at an art gallery or abandon their preference of uniqueness and buy a printed poster for a lower price.
Business model & go-to-market
Niew:art strives to offer art from the most talented young artists. In order to guarantee high quality, trusted experts curate the artist applications on a regular basis. After submission to the platform, exclusive selling rights are granted to niew:art and the artworks will be centrally stored at the niew:art facility. The fulfillment is handled by trusted brands, such as DHL or UPS. Niew:art earns money by taking a 25% commission fee on every purchase. Additionally, niew:art upsells other related products and services (frames, lightning, etc.).
Vienna and Austria are used as first test markets to test the product, establish the logistics network and acquire first artists from renown art schools. Art buyers are acquired by performance marketing measures, content marketing and pop-up galleries. On the artist side, collaborations with universities, presence on independent art fairs and events as well as direct sales will secure initial and sustainable supply of artworks.
Competition in the online art market is fierce and there are some established pure players active in niew:art's broader market environment. However, the combination of the four factors affordability, quality, network, and uniqueness is a clear differentiation point for niew:art.
Considering the challenging task to grow the platform on both sides (buyers & artists), niew:art will turn profitable in FY3 and achieve positive cumulated cashflow in FY3. The total financial need adds up to EUR 230k, which will be raised in two rounds. We aim to bootstrap until the end of 2019 to gain first traction and onboard first artists to raise our pre-seed financing round of 70k in Q4/2019.
Univ. Prof. Dr. Franke, Dr. Dömötör, Dr. Reinsberger