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ARTCITI Presentation 2021

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ARTCITI (PVT) LTD
www.artciti.com
INTRODUCTION
• Started operations in January 2014
(http://www.dailymotion.com/video/x1a6n60_artciti-launch-at-mohattapalace-museum-on-12th-january-2014_creation );
• With major focus on online sales and marketing, Artciti also has a physical
space that can allow customers to experience the art pieces in person (a
“Bricks and Clicks” model);
• In its early years, Artciti has been highlighted as one of the “6 exciting
start-ups” in the world of online art business
(http://artradarjournal.com/2014/02/21/how-the-internet-is-changingart-business-6-exciting-start-ups/);
Introduction – Cont..
• In a short span of 6 years, Artciti has held over 69 exhibitions of
various well-known as well as up-coming Pakistani artists;
• Gallery has also exhibited works of international artists in Pakistan,
thus offering local clientele access to works of artists from abroad;
• The gallery carries one of the largest collection of Pakistani art
pieces from various genres, including abstract, calligraphy,
landscape, figurative, miniature, seascape etc. We are currently
carrying inventory of over 3,100 paintings from over 450 artists;
• With the largest following online for any Pakistani art gallery, our
mission remains to provide a platform, to Pakistani artists, that has
the real ability to showcase their work worldwide and help them
gain appreciation and much greater market access;
Pakistan Economics and
Demographics
GDP
The Gross Domestic Product (GDP) in Pakistan was worth 312.57 billion US dollars in 2018. The GDP
value of Pakistan represents 0.50 percent of the world economy. GDP in Pakistan averaged 75.28
USD Billion from 1960 until 2018, reaching an all time high of 312.57 USD Billion in 2018 and a
record low of 3.71 USD Billion in 1960. source: World Bank
GDP Per Capita Income
The Gross Domestic Product (GDP) in Pakistan was worth 278.22 billion US dollars in 2019,
according to official data from the World Bank and projections from Trading Economics. The GDP
value of Pakistan represents 0.23 percent of the world economy. source: World Bank
Remittances
Remittances in Pakistan decreased to 5627 USD Million in the first quarter of 2020 from 5918 USD
Million in the fourth quarter of 2019. source: State Bank of Pakistan
Consumer Spending
Consumer Spending in Pakistan increased to 11101050 PKR Million in 2019 from 10659937 PKR
Million in 2018. source: State Bank of Pakistan
Demographics
Demographics – 35% of population (66.5 million) is target market
(ages 20 to 50). Another 10% of population will be joining the target
market in the next 5 years
20%
15%
10%
%age
5%
70 to 74
60 to 64
50 to 54
40 to 44
30 to 34
20 to 24
10 to 14
0 to 4
0%
Demographics
Demographics – 35% of population (66.5 million) is target market
(ages 20 to 50). Another 10% of population will be joining the target
market in the next 5 years
Age
Group
Males
Male %
Females
Female
%
Total Age
Group
Population
Age Group's
share of total
pop.
0-14
39,890,248
51.86% 37,023,502
48.14%
76,913,750
34.82%
15-24
22,184,983
51.90% 20,563,209
48.10%
42,748,192
19.35%
25-54
40,567,249
51.06% 38,886,322
48.94%
79,453,571
35.97%
55-64
6,151,965
50.55%
6,019,025
49.45%
12,170,990
5.51%
65+
4,877,562
50.78%
4,728,266
49.22%
9,605,828
4.35%
E-Commerce Trend - Pakistan
E-Commerce Trend
• E-Commerce Trend in Pakistan;
– Online Shopping in Pakistan is taking off at an astonishing speed;
– Pakistan has more than 122.5 million mobile users (mobile penetration at a
staggering 64%) with over 22 million 3G/4G users;
http://propakistani.pk/2015/12/02/pakistan-tops-122-5-million-mobile-users20-million-3g4g-users/. Pakistan currently has 9 million users of smartphones
which is also increasing exponentially due to ready availability of cheaper
smart phones;
– Pakistan’s internet enabled population is around 30 million users per day. This
is expected to rise up to 56 million users per day by 2019;
– Over the next 5 years, 28 percent of the country’s population is estimated to
have internet access;
E-Commerce Trend – Cont…
– Pakistan’s e-commerce revenue is projected to reach
US$ 5,409 million in 2021;
– Revenue is expected to show an annual growth rate
(CAGR 2021-2025) of 7.55%, resulting in a projected
market volume of US$7,236m by 2025.
– The market's largest segment is Fashion with a
projected market volume of US$3,893m in 2021;
– User penetration will be 22.8% in 2021 and is
expected to hit 26.9% by 2025;
– The average revenue per user (ARPU) is expected to
amount to US$105.22.
Source: https://www.statista.com/outlook/dmo/ecommerce/pakistan
Artciti – Financial Highlight
• Total revenue for year ended June 2020 was
PKR 79 mn;
• Total revenue for half year 2021 stand at PKR
55 mn. Revenue is projected to cross PKR 100
mn for the year ending June 2021;
• Net margin range between 20% to 25%;
Artciti – Online Stats
Artciti – Stats
Unique visitors
160,000
138,709
140,000
148,225
120,000
100,000
83,884
80,000
75,016
72,633
60,000
57,965
40,000
37,727
20,000
5,181
-
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Artciti – Stats
Number of visits
350,000
300,000
280,470
267,262
251,722
250,000
200,000
150,000
143,520
141,191
100,000
101,354
71,500
50,000
10,963
-
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Artciti – Stats
Visited Pages
3,000,000
2,522,285
2,500,000
2,000,000
1,849,173
1,500,000
1,312,147
1,000,000
1,005,525
500,000
1,072,184
1,155,431
475,076
99,714
2013
2014
2015
** NOTE: Year 2021 are 9 months numbers
2016
2017
2018
2019
2020
2021
2022
Artciti – Facebook Stats
Total Page Likes
EYE FOR ART
Ocean Art Galleries
The Art Gallery
Momart Art Gallery
Spaces Gallery
Indian art
VM ART GALLERY
Hamail Art Galleries
Mussawir Art Gallery
Studio3 Art Gallery
gallery 6 Islamabad
Artscene Galleries
Treasure Trove
Clifton Art Gallery
Sanat Initiative
Unicorn Gallery
Ejaz Art Gallery
Artcade
Canvas Gallery
Khaas Art Gallery
Artery India Art Intelligence
World Art Dubai
Aakriti Art Gallery
Art Citi
1,883
3,509
3,628
4,441
6,520
6,740
6,944
7,312
7,339
9,308
10,440
10,556
12,127
12,599
13,408
13,980
15,505
19,738
21,714
28,661
44,469
47,915
64,979
194,312
-
50,000
100,000
150,000
200,000
250,000
IMAGES OF ARTCITI GALLERY
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Gallery
Exhibition Coverage
Inauguration at Mohata Palace
Capital Requirement
Deployment of Capital
Capital Requirement – Series A/B Funding
Deployment of Capital
•
Seeking expansion capital to:
–
–
–
–
–
ART GALLERY EXPANSION:
Market aggressively online as well as through print and other medium, both
locally and internationally;
To increase the current gallery space by relocating to a bigger place in Karachi;
Will open galleries in Lahore and Islamabad to increase client base and to get
access to more artists in the country;
To offer contracts to the current top 5 most sought after local artists to
exclusively market and sell their work worldwide (buy or bind their work for
next 2 years);
Plan international shows at Dubai, Singapore, London and other cities where
Pakistani Art already is known and sells. This is to market the website, increase
awareness of Pakistani Art and increase our clientale;
Deployment of Capital – Cont…
ARTCITI HOME:
• Launch portal to introduce home accessories produced locally as well as
imported (Example: www.craftsvilla.com and www.potterybarn.com );
• Products to be offered will include traditional clothes, jewelry, crafts,
home accessories, furniture etc;
• This is a huge segment of country’s retail business that has not been
tapped yet in depth. Our target market will be the general middle class
which is estimated to be around 66.5 million people;
• A natural extension of our present line of business. This will further offer
good quality products at very competitive prices to the largest segment of
society;
• To increase relevant and experienced HR strength to achieve all of the
above.
ARTCITI HOME – INVESTMENT
RATIONALE
• SME’s produce high quality products (traditional clothes, jewellery etc.)
but do not have the means to rent shops in malls or set up online portals
to sell;
• Currently most of the current boutiques and shops target upper middle
and upper class when bulk of population is in the middle and lower middle
class segment;
• Our ARTCITI HOME portal will focus on the middle and lower middle
segment (will be based in line with the concept of www.craftsvilla.com in
India);
• This segment is tech savvy (mobile and internet usage)
http://propakistani.pk/2015/12/02/pakistan-tops-122-5-million-mobileusers-20-million-3g4g-users/;
• E-commerce in Pakistan – Facts: http://www.kaymu.pk/research/;
Deployment of Capital – Cont…
– To launch 3 Art Cafes in the country to promote art
and artists, as well as create a new profitable avenue
for the company by targeting country population’s
favorite social activity (eating out).
• Over 45% of disposable income is spent on Food, Beverages
and Tobacco in the country;
http://www.pbs.gov.pk/sites/default/files/pslm/publications
/hies11_12/tables/table15.pdf
• Plan to hold fortnightly events at the venues where artists
can come and do live painting shows and create a
relationship with their customers , thus promoting their
work and sales;
ARTCITI HOME – Investment Rationale
Cont…
• Another portal focusing largely on middle class is
daraz.pk. Daraz.pk received over 1.5 million visitors on
their black Friday sale day in last quarter of 2016. Goes
to show the interest that middle and lower middle
segment of society has in online purchase if the price is
right!
• Our focus will be specific to traditional clothes, jewelry
and other crafts sourced from SMEs that produce good
quality products for fairly reasonable prices. We will
also be selling good quality imported home accessories
at very competitive prices ;
ART CAFÉ – Investment Rationale
• Art Cafes will bring Pakistan’s favorite social past time and exhibition of art
together under one roof (On average, over 45% of disposable income is
spent on food, beverages and tobacco in Pakistan)
http://www.pbs.gov.pk/sites/default/files/pslm/publications/hies11_12/tables/table15.pdf
• It will be one of the 2 major revenue generation avenues for the company;
• Plan to set up 3 Art Cafes; one each in Karachi, Lahore and Islamabad;
• Cafes will start with lunch and dinner services and will extend to offer
breakfast after 6 months;
• Will invite artists on a fortnightly basis for live performance which will
allow art buyers to meet with the artists to understand his or her work
better;
ART CAFÉ – Investment Rationale
Cont…
• With different Art displays and various artists coming in on a regular
basis etc, the Art Cafes will always have something different and
new to offer, thus bringing in regular repeat customer. Basically it
will always be dynamic in terms of what it offers in addition to food;
• This will help generate greater interest in Art and will help promote
and market works of both established and new artists in the
country;
• Art Cafes will sell exclusive memorabilia and sovouniers with
different art prints (art prints, printed mugs, table ware, furniture
accesories etc.) which will also be a good revenue line for the
company;
IMAGES OF ART CAFE
Contact
Artciti (Pvt) Ltd.
Email: amirshehzad@artciti.com
Phone: +92 334 22 333 44
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