Zwende is an online platform for ‘Guided Customization’ of designer home decor products and fashion accessories.Each product is handcrafted on-demand by skilled artisans and master craftsmen, thus ensuring revival and sustainability of global art and craft forms.
The ICP (screenshot attached) has been made by talking to users ( art business owners + art enthusiasts ) on online platforms like Zwende. I dropped them a request for interaction on Instagram/Whatsapp. This was done to understand as to how has Zwende contributed to upgrading the quality of their business.
ICP : Ideal Customer Profile Venn Diagram for acquisition
Fitment of the ICP in the framework
- Adoption Curve: Fastest among the artists/art business owners in Tier 2 & Tier 3 cities since their awareness / ability on logistics & marketing elements is limited. They need a platform to sell their products with customisation enabled for the end users. The next is amongst Tier 1 artists, however adoption is relatively less since they just look for a platform in the initial stages for a category of product. Once they gain the right audience on Instagram the overall sales for them remains stagnant through platforms like Zwende. They then heavily rely on Instagram/own website.
- Highest frequency use case includes selling products on Zwende (with customisation possible) to improve the new customer acquisition.This also allows the artists to increase their product offerings /product range in direct correlation with customer demand.
- Margin between 8%-10% to list the product on the platform which is quite affordable for the artisans given the platform. End customers, falling in the category of upper middle class earning more than 8 lpa that invests in home decor/accessories/gift hampers is essentially another ICP
- Distribution Potential : While the interface has been eased out for registration purposes, the number of artisans for serviceable addressable market turns out to be around 13 lacs. (math done in TAM section)
Product Category/Market/Competitors for Zwende
Keywords used maximum by the sellers /art business owners: ‘ Selling handicraft online’ , ‘selling art online’, ‘selling handicraft online from ‘city name’
Keywords used by art/home decor enthusiasts (end user): ‘recreating living space’ , ‘customisable name plates online’, ‘ customisable coffee mugs’, ‘customisable home decor items online’
Top competitors for Zwende include
- Amazon Karigar: Allows small scale artisans to sell handicraft /home decor/art products. Also provides logistics and marketing abilities. The artisan is paid after 7 days once an end user purchase is made. The commissions for listing the artwork is less than 8%. While the commission for artisans to enlist their product ranges between 8%-10% for Zwende, it allows the end user to customise the product , ensuring the ease of affordability. Both platforms enable education on how to get registered, but Zwende promises more number of projects with the business model of customisation and a wider range of products.
- World Art Community : Operates 80 percent similar to Zwende with a striking difference of customisation not being available to the artisans
- Artzolo/Mozarto: The product range only includes canvas paintings and folk art.
Total Adresssable Market
The total addressable market has been calculated using a combination of top down + bottom up approach keeping in mind the assumptions/facts in place.
Facts & Assumptions
- Net population in India : 140 crores
- Urban population : 30% of the net population; Rural Population : 70% of the net population
- The artisans residing in Tier-1 cities are self sufficient and rely less on external platforms to sell their products. Hence for assumption sake their inclusion to calculate the target segment is less than 1%
For Artisans
Artists residing in Tier 2 cities = 3% * ( 50% of 30% of Net Population) = 3% * (50%* 30%*140 crore) = 0.63 crore
Artists residing in Tier 3 cities = 10% * ( 20% of 70% of Net Population) = 10% *( 20% * 70% * 140 crore) = 1.96 crore
Artists residing in rural villages/districts = 5% * ( 80% * 70%* Net Population ) = 5% * (80% * 70%* 140 crore) = 3.92 crores
Total number of artisans in India = Artists in Tier2 cities + Artists in Tier 3 cities + Artists in rural villages = 0.63cr + 1.96 cr + 3.92 = 6.6 crore
TAM : Artisans that have the means/willingness to register on platforms like Zwende : 5% of 6.6 crore = 33 lacs
SAM : Every artisan has 2-3 members in the team on an average. Therefore, number of registrations = 33 lacs/ 2.5 = 13 lacs
For customers
Target the upper middle class customers who are art/home decor enthusiasts ( demographics mentioned above)
Urban population for end customer = 60% of 30% of 140 crore = 25.2 crore
Tier 3 city population for end customer = 50% of 20% of 70% of 140 crore = 9.8 crore
Rural Population for end customer = 5% of 80% of 70% of 140 crore = 3.92 crore
TAM = Urban population for end customer + Tier 3 city population for end customer + rural population for end customer = 38.92 crore
Average cart value in Zwende = Rs 1000 ; commission = Rs 100 ( on every sale)
Maximum potential Revenue that can be generated = Rs 38.92 crore * 100 = Rs 3892 crores ( given, they buy once a year from Zwende)
Core Value Proposition : Creating a market place for local artisans and buyers for customised home decor/handicraft/gift hampers
Designing acquisition channels
Zwende is in an early scaling stage since its now looking at scaling its operations . Apart from being a marketplace for customised art for artisans and end user, it is also increasing its reach by providing an educational platform for art based workshops. It has facilitated the artists to conduct live/recorded workshops to a wider set of art enthusiastic audience.
| Job | Goal |
|---|---|
| Functional | Bringing artisans from Tier 2, Tier 3 and rural areas to a platform where they can sell their product to the end user |
| Personal | Artisans may have a keen interest in protecting their native art form and morphing it into finished home decor products |
| Financial | Artisans may want to keep their art as the source of income |
| Social | Artisans would be motivated to preserve their interest/talent as traditional art form |
Detailing out an acquisition channel
Based on parameters like Cost of acquisition, flexibility effort required, Lead time and scale I have zeroed in on organic search, content loops and product integrations. Attaching the file of assessment herewith which has different tabs on assessment for each of the above.
Organic Search
- Conducted keyword search on google, youtube etc with keywords like ‘customised name plates’, ‘personalised name plates’, ‘items for home decor’ etc.
- The end user searches for personalised name plates/home decor items online , whereas the artisans put in keywords like ‘selling handicraft product online’, ‘selling customised item name online’.
- The strategy can be upgraded since the keywords like ‘ personalised name plates’ / ‘unique name plates’ are searched for in bulk. However Zwende has its products listed with a different set of keywords. Additionally, the partner program for artisans also needs more introspection from organic search standpoint. Since artisans use simple terms like ‘selling art online’ . Zwende ranks quite low on organic search in both the aspects. Attaching screenshots for reference.
Organic Search
- Conducted keyword search on google, youtube etc with keywords like ‘customised name plates’, ‘personalised name plates’, ‘items for home decor’ etc.
- The end user searches for personalised name plates/home decor items online , whereas the artisans put in keywords like ‘selling handicraft product online’, ‘selling customised item name online’.
- The strategy can be upgraded since the keywords like ‘ personalised name plates’ / ‘unique name plates’ are searched for in bulk. However Zwende has its products listed with a different set of keywords. Additionally, the partner program for artisans also needs more introspection from organic search standpoint. Since artisans use simple terms like ‘selling art online’ . Zwende ranks quite low on organic search in both the aspects. Attaching screenshots for reference.
Organic Search
- Conducted keyword search on google, youtube etc with keywords like ‘customised name plates’, ‘personalised name plates’, ‘items for home decor’ etc.
- The end user searches for personalised name plates/home decor items online , whereas the artisans put in keywords like ‘selling handicraft product online’, ‘selling customised item name online’.
- The strategy can be upgraded since the keywords like ‘ personalised name plates’ / ‘unique name plates’ are searched for in bulk. However Zwende has its products listed with a different set of keywords. Additionally, the partner program for artisans also needs more introspection from organic search standpoint. Since artisans use simple terms like ‘selling art online’ . Zwende ranks quite low on organic search in both the aspects. Attaching screenshots for reference.
Acquisition SEM Rush images
Content Loops
Pinterest best exemplifies the content loop for this case. The hook shows the keyword search that the user puts up as ‘best home decor ideas’, ‘minimalist ideas for living space/bedroom’, ‘gift ideas for bridesmaid’ etc. The term ‘ideas’ hits Pinterest as the topmost result. The content creator is the person/business that enlists himself/herself/itself on Pinterest along with a url for his/her website. The distribution channel is Google SEO and Pinterest SEO that shows results from enlistment when ‘hook’ is typed on the search bar.
Product Integrations
My ICP1 & ICP2 (artisans) uses Amazon Kaarigar as well which may not be a very fruitful collaboration since that is a competitor product. However the ICP3 (end users) often collaborates with Event Management companies, Interior Designing Organisations and Corporate Gifting Firms. ICP3 is a very vast market which can be tapped into by collaborating with the organisations they buy from ( listed above)
Customer Journey in case of approaching an event management company. Its a huge market which can be tapped into by collaborations. Maximum penetration into this market will have a direct implication on the cart value.
Similar journey can be extrapolated in the case where end user approaches an interior decor firm/corporate gifting firm.
Conclusion & Bibliography:
The assignment has been completed basis the primary/secondary data accumulated from different sources. Platforms like Zwende which are in an early scaling stage are under constant iterations of scaling up.
Experiments for channels have been ideated given the present setup and possibility of exploration on scaling the operations/improving the service offerings.