EXECUTIVE SUMMARY
My existing online store
Studio Verticale that already has thousands of furniture, lighting and home decor items can become the foundation for the Esteta online marketplace. Powered by Shopify, the same platform as the one used by Artemest, Studio Verticale online store can be changed/redesigned to acquire a different name, enhanced functionality and to scale up to any size operation. Alternatively, a brand-new online store can be built on the basis of Shopify, Magento or a similar secure platform that can be customized to our needs.
While there are many US-based local area dealers & e-commerce shops offering primarily Italian furnishings to the US consumer and architects & designers (from here on A&D) online, they are all limited to a handful of well-known or better-known brands that have established their presence in this market. There is not a single centralized online luxury marketplace headquartered in the US comparable in size to the Milan-based Artemest (currently over $1400 Italian brands/artisans) that would offer luxury and artisanal furniture, lighting and decor from around the world to the US consumer and the Trade. Other than Artemest, there is also Imaestri
https://imaestri.com/, a significantly smaller Italian operation (currently 138 brands) focused on well-known Italian brands. Imaestri is strictly an e-commerce operation with no physical showroom or gallery anywhere in the US.
The Esteta’s edge will come from the following key factors, some of which are already available from Studio Verticale online store:
- We’ll expand the reach to Spanish, French, Portuguese, German, Scandinavian and other European artisanal companies in addition to Italian furniture & decor makers. Casting a wider net, Esteta will showcase each maker’s unique artisanal value and each country’s cultural heritage it brings to the world of design.
- By establishing a US-based operation, we’ll remove the mental barrier of placing a high-ticket order with an overseas company and the difficulty that may present with accountability and other aspects.
- We’ll have variants (size, finish, color, etc.) for make-to-order products, currently unavailable on Artemest.
- We’ll provide access to 2D/3D architectural files for every product we offer for sale online directly on product pages. This alone will help with the A&D community outreach and targeting tremendously. Additionally, the platform will speak the language of A&D professionals and the luxury-minded US consumer, with intuitive navigation, tailored product recommendations, and content that speaks to both groups.
- Returns: non-customized items can be shipped back to a warehouse in Boston. This is big: Italian-based marketplaces require the returns to be shipped to Italy. For many consumers and professionals in the US, this is a serious obstacle in their purchase consideration, even though statistically returns in the furniture segment of e-commerce are low compared to other segments.
- To build loyalty, drive conversions and increase profit, we’ll offer product protection like Mulberry on eligible products. This feature is not available from any of the Italy-based online stores.
- We’ll implement a policy similar to 1stDibs Promise to put forward best practices for consumers' peace of mind.
The goal: Esteta’s goal is to bridge the gap between European luxury and artisanal brands and the US market, focusing on both direct consumers and the professional A&D community. The idea is to create an online marketplace that would bring the world of European luxury and artisanal furniture and home decor to the US with a centralized representation in the US, a partner that will put in place and ensure a seamless process for both the end consumer and the maker.
Value Propositions for Both Audiences:
- For A&D Professionals: We’ll offer curated selections of European designs, limited-edition pieces, or unique artisanal products not readily available in the US, with easy access to specific product details, CAD drawings, and materials information. Offering exclusive deals or special access to high-end brands would also appeal. We’ll offer a comprehensive Trade program.
- For Consumers: We’ll highlight the exclusivity of European luxury goods, making it clear that we are offering a direct link to European craftsmanship, with a focus on high quality, heritage, and uniqueness. The platform will also offer an optional white-glove customer service to match the luxury experience.
Education and Trust: Since US buyers may not be as familiar with many European artisanal brands, a key focus could be on educating them about the brand histories, craftsmanship, and how these brands differ from better known mass-market products. Transparent information on authenticity and origin will be important for building trust. Each maker’s story will be brought to light and shared with the online community.
Logistics and Delivery: We’ll tap into the great logistics system already available in this country to ensure fast and safe shipping across the US once orders reach the Boston port. The final mile delivery companies in and around major US cities will provide a way to offer white glove delivery services in most metropolitan areas and beyond. Providing clear communication on return policies and customer service availability will also help instill confidence in the consumer. More jobs and revenue will be generated for the Boston area and the country-wide logistics system.
By positioning the marketplace as a bridge for exceptional European design, backed by a trusted US-based infrastructure, the company could address both the demand for luxury products and the need for the professional and consumer market to work with familiar, reliable partners.
Esteta Showroom: An important platform for staying on top of the ever changing design landscape and for promoting Esteta’s mission is the Esteta showroom in Boston’s prime location. In addition to showcasing the best and the latest designs and being a sales channel generating upward of $5M in estimated sales, the showroom’s other function will be aiding in education and building trust. The gallery would become a place for private clients, A&D community and collectors to learn about new developments and trends in the world of European design and craftsmanship. We’ll have curated talks and events targeting design aficionados and novices alike.
The Space: A retail redevelopment to create new space at the bottom of the Park Square building on Saint James Avenue, a prestigious Boston address, is presenting a unique opportunity to be in the heart of the Back Bay’s high-end design destination with B&B Italia showroom, Poghenpohl & SieMatic kitchen showrooms, Hermes, Minotti showroom, Showroom Collezione, Roche Bobois. Ligne Roset and other similar establishments.
The future for this type of business offers a number of opportunities:
- Consistently growing the product offering.
- Expanding into art as a field being closely intertwined with design.
- Opening gallery/showroom locations and/or fulfillment centers in best performing areas.
- Subscription membership for design professionals that would offer perks, special pricing, services, etc.
- Expanding into global sales.
- Limited-edition pieces produced exclusively for Esteta.
Financial Projections: Projected sales for the Boston gallery/showroom are available upon request. With respect to the online sales, here is what we know: Archiproducts (
https://www.archiproducts.com/en) netted $88.8M in global sales in 2023. Imaestri makes just under $5M in annual sales; Artemest had 4 rounds of funding with $26.9M of total funding amount. Artemest's estimated annual revenue is currently $33.1M per year. More data on revenue and competition can be found here:
https://growjo.com/company/Artemest. In its seed round of funding Artemest raised $1.2M.
About me: Uniquely positioned for this undertaking, I am an industry veteran with 17 years of hands-on experience running an Italian furniture, lighting and kitchen showroom in Boston, importing from Italy and other countries; overseeing projects of varying sizes from gut renovations to product installations; managing people and taking care of logistics as well as building an e-commerce store and developing it. At this point, I am working on transitioning my existing business (
Studio Verticale) from retail to B2B/E-commerce/Private Label format. I am well-connected to the Boston A&D community and trade publications and to over 200 European makers. I know what works and what doesn’t work in this niche market, thanks to my Studio Verticale experience in both retail and ecommerce, and can easily forge new relationships with makers (big and small) across Europe.
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