Many will argue that starting a business during these tough economic times is at least unwise, especially a business with low inventory turnover and very high elasticity of demand. In the short term, such a business cannot be expected to have a high return on investment, but with a well-defined long-term strategy, starting any business now is not such a bad idea. First, many companies that have been in existence for at least five years are on the verge of bankruptcy. Their fixed assets are outstripping their current subdued demand and their debt-to-equity ratio is high. This means less competition. Second, when the economy starts to pick up steam, your startup will be well prepared to rise to the tidal wave, with no or no debt, and built “tough, lean, and mean.”
Art may not be easy to sell right now, but this is not necessarily the case in more favorable economic conditions. Let’s take a look at the structure of consumer spending on art in Canada.
o Canadian consumers spent $ 22.8 billion on cultural goods and services in 2003, more than spending on tobacco, alcohol and gambling combined.
o Consumer spending of $ 22.8 billion is more than three times the government spending on culture in Canada.
o Culture is a growing market: consumer spending on cultural goods and services grew by 36% between 1997 and 2003, much higher than inflation (14%) and population growth (6%).
o Canadians spent $ 1.2 billion on books (excluding school textbooks) in 2003, 34% more than in 1997 (excluding inflation).
o Spending on live performing arts in 2003 was $ 980 million, a 31% increase over 1997.
o Canadians spent $ 530 million on art, carvings and vases in 2003, up 48% from 1997.
o Consumer spending on visits to museums and cultural heritage sites was $ 410 million in 2003, up 23% from 1997.
o By comparison, in 2003, consumer spending on live sporting events was $ 530 million.
o 49% of Canadian families spent some money on books (excluding school textbooks) in 2003.
o 37% of households spent money on live performing arts.
o 11% of households spent money on art, carvings and vases.
People spend money on art. People are likely to rely on local artists if they have a choice and the total cost is affordable. Culture and art are growing in Canada. The trend is likely to continue despite the current economic downturn.
I cannot stress further that demographics are a key variable in any marketing effort. It’s no coincidence that many companies spend fortunes on primary demographic research before developing a new business segment or entering a new market. Art is especially sensitive to demographic segmentation. Thus, knowing your client is the key to your success. Let’s examine Winnipeg’s demographics to confirm the above points.
1.According to the 2006 census, Winnipeg itself had 633,451 inhabitants, with a total of 694,668 residents in the Winnipeg metropolitan area as of May 16, 2006 and 711,455 people in the Winnipeg Metropolitan Area, making it the largest city in Manitoba and eighth largest in the world. the largest city in Manitoba. In Canada.
2. 48.3% of the urban population were men and 51.7% were women. 24.3% were 19 years old and younger, people aged 20 to 39 made up 27.4%, and persons aged 40 to 64 made up 34.0% of the population.
3. The median age of Winnipeggers in May 2006 was 38.7, compared with an average age of 39.5 for Canada as a whole.
4. Between the 2001 and 2006 censuses, the population of Winnipeg increased by 2.2%, compared with an average of 2.6% for Manitoba and 5.4% for Canada. Winnipeg’s population density averaged 1,365.2 people per square kilometer, compared with an average of 3.5 for Manitoba.
5. The population of the city of Winnipeg is estimated at 672,300 as of July 1, 2009, and the population of the census metropolitan area is 739,300.
Psychographic data or lifestyle analysis is essentially an analysis of a person’s daily lifestyle. Psychographic data are usually expressed as activities, interests and opinions. A detailed lifestyle analysis can help new businesses in many ways. First, the analysis will help in planning an effective marketing strategy. Second, understanding lifestyle patterns will help you design good advertising themes and web content. Third, lifestyle analysis helps designers improve interior and exterior design.
It is necessary to critically understand how people spend money, especially on arts and culture, and how they can be facilitated with an online shopping experience that not only connects them with local artists, but also provides many useful services.
In order to effectively engage the target market on the seller’s side, a complete behavior analysis is required. Needs, perceptions, attitudes and other psychological variables that can affect artists and art houses need to be examined. The following factors have a profound impact on many artists who would like to embrace the online business model.
1. Failure to learn website design techniques or manage online portfolios.
2. Complete dependence on traditional forms of business and advertising.
3. Attitudes, values and perceptions of online businesses.
Part of a viable strategy is to inform and convince clients of the firm’s offerings. However, a behavioral problem arises when consumers have imprecise beliefs or resist change.
The chain of events taking place puts additional pressure on local artists and creative boutiques to keep up with business overheads. On the other hand, consumers are looking for inexpensive solutions but are reluctant to leave their homes to shop. Consumers are showing great interest in online shopping in order to save on costs. Since the global shopper takes a strong interest in buying products and services online, there is a niche for business in this market. Think of an “e-shop that only connects artists to consumers.” There is also a need to educate businesspeople to expand their business outreach beyond “traditional brick and mortar establishments”. This is where your company could fit into the picture.