Sales

Courtesy of Wondereur
Case Studies
Posted: September 4, 2012
by Ryan Starr

Wondereur.com brings brings art to the people via iPads, but no one’s buying

Vital Stats
Owner:
Olivier Berger, Sophie Perceval and Angelica Fox
Address:
720 Bathurst St., Toronto, ON
Field:
Online publishing/app development
Staff:
10
Years active:
Less than one
Sales:
None

Sophie Perceval and Olivier Berger are passionate about breaking the barriers alienating ordinary people from the oft-rarefied world of art.

So passionate, in fact, that the French-born duo launched Wondereur — an iPad magazine that features weekly photo essays on up-and-coming artists, whose art it also sells — with nothing but their own money in the coffers.

They could have pursued investor capital, but chose to start out bootstrapped.

 

And, in hindsight, the company may have been better off with more cash at their launch in June. Wondereur’s free app has seen less than 10,000 downloads. And, even worse, they haven’t yet managed to sell a single piece of art.

There have been some close calls, but in monitoring user activity, the founders noticed a distressing patten.

“They put something in the basket, click on ‘checkout’, but then something happens that seems to confuse them,” Perceval explains. “There’s been a lot of intent to buy, but we haven’t made any sales yet. So we’re missing something.”

Mandeep Malik, a marketing professor at McMaster University’s Degroote School of Business, says these users could be having difficulty ascertaining certain information, like if Wondereur ships internationally, what it costs, and what types of payment it accepts.

It could also be that customers don’t feel the site is secure, or that they’re uncomfortable buying from a business lacking an established brand identity.

That lack of familiarity with Wondereur could stem from their funding issue. Because the company’s owners didn’t have the cash to hire any outside help, they opted to handle their own PR. They became active on social media, and pursued their target audience by contacting design and technology blogs. This got them features on a few sites, such as Toronto’s TrendHunter.com, the self-proclaimed “world’s largest, most popular trend community,” and Design Mom, a popular French design website — but the launch ultimately caused more of a whimper than a bang.

Perceval, who has a day job as an arts reporter with CBC/Radio Canada, admits the company could have simplified its initial presentation to make the concept easier to market.

 

“The magazine the shop, buying online, original art, recommendations, it’s a complex product,” she says. “Sometimes you have to (talk about) the one thing that’s interesting to that person, and not the 25 other things. We were lost in the message.”

Still, despite initial challenges, the pair continue to believe in Wondereur’s mission: to help make art more accessible to the masses, and make money in doing so.

“The key assumption of this business is that by building a story, people are going to be convinced that this artist is amazing, his work is interesting, and want to buy it,” says Berger. “If nobody’s buying, there’s no business.”

Each week the site features a new documentary-style photojournalism essay on a lesser-known contemporary artist. The features — assembled by Wondereur’s 10-person staff, most of whom are on the editorial and design team — get up close and personal, taking users behind the scenes with in-depth interviews and evocative images meant to capture an artist’s personality and creative process.

Recent artists have included Toronto photographers Meryl McMaster and Alex Kisilevich, and  illustrator and Ontario College of Art and Design instructor Catherine Lane. After perusing photo essays — which highlight McMaster’s work on identity, memory and the environment, or Lane’s exploration of fragmented storytelling, for example — visitors have the option of purchasing original works, which sell for anywhere between $225 to $2,500.

 

With no purchases yet, the business has only managed to continue operating thanks to its unique payment arrangement — staff get their salaries through a combination of guaranteed income and a percentage of total art sales. Some have chosen zero guaranteed income, while others receive some salary along with their share in the art sales — usually a 50/50 split.

The arrangement enables the company to spread risk and minimize costs.

“And it works well in terms of making this project not just ours,” says Perceval. “Everyone around the table has an interest in making it work, (and) everyone who’s been here for the adventure has been happy so far.”

Still, Wondereur’s founders know the good attitudes likely won’t last long if sales don’t pick up. They hope the challenges they’ve faced so far are simply a result of early missteps, and not an indication of an unworkable business model. But Berger admits the low number of downloads is an ongoing concern, and would like to see them reach the mid ten thousands, which will require more than tripling the company’s user base.

Degroote’s Malik suggests the key to success hinges on marketing.

“Their top priority right now should be getting the awareness out there and gaining credibility as a reliable resource for art,” he says.

 

So, to address their marketing issues, Perceval and Berger recently started working with a PR agency that specializes in the art industry.

“They’ve helped us make partnerships and build the brand,” says Perceval.

 

On the financing front, while Wondereur has gone it alone initially, Berger indicates they’ve had informal discussions with investors and are currently building relationships. He says the company will go looking for additional capital this fall, and that he and Perceval will do everything possible to forge ahead.

“We’re willing to kill it if necessary, but we’d be very surprised if we had to, ” says Berger. “Financially it would not be good news.”

EXPERT VIEWS

As Interviewed by: Tom Henheffer

Leveraging art through mobile is a novel and interesting business concept, and I think there’s great value in providing background on the artists through photo-essays. And, with consumer habits changing, using mobile technology is a differentiated way to reach out and sell art. Looking at what people buy online, items like jewelry show how the price point and the channel are compatible with customers, so I believe the model can work. It is very important, however, that they get a handle on their sales situation. Is there a technical issue impeding customers from finalizing their purchase, or is it something else they need to get a handle on? The company should try and get feedback to find the answer. Collecting data as customers use the app could help, as would surveying users after the fact. And, going to partner galleries to show the offering in person may also raise awareness and help the company gain feedback. This would allow them to show people that the app works — expose enthusiasts and potential customers to the idea of consuming art this way, and it just might become a habit.

by Mike Michell

I love the idea — they’re bringing unknown talent to the forefront and creating insight into artists, instead of just offering art for sale. But art is very personal, and consumers are usually looking to touch and feel and make sure a piece is right for them. Programs already exist to let users take pictures of their homes, digitally place art on the walls, and see what it looks like hanging up — adding this to the app could cut down on user wariness and boost sales. But Wondereur also has to face off against art and craft retail sites, such as Etsy.com, and should expand their target audience to compete. So, they can look into hosting the magazine on their website, instead of just in the app, and give it some ecommerce functionality so they're selling to more people. Finally, the company should leverage their connections with existing galleries by demoing the app at showings, and also use curators with established names to recommend up and coming artists and lend their brand to the company. Art is expensive — Wondereur needs to build its credibility to earn the trust of users.

by Tisha Rattos

They want to make art more accessible to the masses, but that won’t make them any money. At this point, the business is more of a public service than it is a commercial operation. People are stopping at the checkout, but not because of technological issues. Ecommerce is meant for selling inexpensive, well-defined products, such as books or MP3s, at high volumes. It grants access to an audience of billions, but billions of people won’t buy $1000, non-essential pieces of art. They’re thinking, ‘what if I don’t like it, what if it gets damaged, how will I return it?’ These sales are made at galleries and special events for a reason — Wondereur simply may be trying to deliver a service to a market with no appetite to buy. But the company can be a successful business and keep its lofty goals, the owners just need to pay the rent by selling products that are more ecommerce-friendly. Prints, posters, coffee mugs, framing services — these will help build profitability so they can keep profiling artists and, from time to time, sell those $300-$3000 pieces of art.

by Ron Babin
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