The objective of this post is to move the needle in what Daisler Print House can do in the context of new revenue streams for the business, meanwhile adding new opportunities and value to the creative industries.
Daisler Print House is a 17 years old company based in Cluj Napoca, Romania that reached 1.2M EUR in turnover. A good number you may say, but this business innovation proposal is here to say that it can generate more than that, and it will show how it can be done.
The goal of this paper is to showcase the market gap and the business opportunity that lies in that gap. Now even more than ever, while we are facing uncomfortable times.
While this proposal is only connecting multiple data points, I would like to make my thinking visible.
DPH is an established company that has pinned down its service-related departments, processes, and procedures. Their capability to custom print their customer’s brand on a vast portfolio of non-branded physical products has been validated and is generating revenue and has year-on-year growth.
From my outside analysis, I can see that the company meets the required level of expertise and quality needed in delivering print services. They nailed the distribution channels and acquisition of new product suppliers and required nuances in filtering out a good vs a not so good product to print on.
My final observations about the company are that in order to be cashflow positive it has to nail the pricing model, cost structure, and business model, and it looks like they’ve done that.
From the above figures and findings, I can make a wild assumption that DPH is ready to build new business units or kick-off developing new business offerings.
My second macro data point comes from the European creative and cultural workforce (CCW). They say that in 2019, there were 7.4 million people in cultural employment across the EU-27 (3.7% of all employment), and the proportion of people who were self-employed in the field of culture in the EU-27 was more than double the average observed for the whole economy. (All this, according to the data extracted by Eurostat in May 2020)
To be more specific to our context I would like to draw your attention to three domains (visual arts, advertising, and art crafts) and three functions (creation, production/publishing, and dissemination/trade) from the ESSnet-Culture framework for cultural statistics domains and functions.
Europe has a big number of creative artists, who choose to draw, paint, sketch on paper, or digital - their choice to live by as a passion but also as a professional.
DPH has the unique opportunity to promote their art to an unseen scale and reach.
Trade the customer’s logo with the artist’s work.
And this company is doing exactly that: Redbubble. The Redbubble Group’s mission is to bring more creativity into the world. Founded in 2006, today is at a revenue of A$416.3M (Australian Dollars).
I’ve been a member of Redbubble’s creative community for over 10 years already.
Because I want to emphasize the power such a platform has in creating a more sustainable economic framework for the European creative and cultural workforce.
In 2010 being a young creative I uploaded some of my arts to Redbubble, mainly photography and sketches. Since then, in 10 years I made 52 sales and the last one was in November 2019.
My art was shipped to countries like Australia, the USA, France, and the United Kingdom.
The fun part is that 80% of my sales were generated by one single artwork. One piece of art that I uploaded 10 years ago.
I made a grand total of passive income of €107.38, after profit margins and manufacturing fees.
If Redbubble can do it, so can a European company, based in Romania.
The global trend in digital advertising is saying that customers wish for more customized services and brand experience, and the conversion rate is here to back that statement with data.
Brands choose to design unique brand experiences, custom content delivery, custom sales funnels, and many more, all powered by customer behavior data that is feeding into the brand marketing analytics channels.
Employer branding could be the first marketing activity to jump on employee experience customization and custom swag is a unique way to do it. We are on an ascending trend to global customization, one by one.
With a large portfolio of clients from the custom swag branding services, DPH can create a communication campaign and present the new offerings of the company. This action will validate and kick off traction for the newly created business unit.
The Romanian government is rapidly digitizing the economy and in support, of the SME’s it is launching a new €150M funding program to do so, where DPH can apply to build the new business unit. Or there are always alternative solutions to fund a new venture.
The present economic situation will stay for sure for another year or two until we design a new normal. Therefore this is the perfect timing to launch such a platform, integrating back the creative workforce through a digital gateway.
Under the right tactics and optimization, my forecast for this business strategy, for the YoY growth is between 15%-25%.
This innovation proposal post is the first out of many more to come. As a nation, we need more innovation in our country and beyond our borders, and together with the team at Grai Group, we believe we can help Romania rank higher on the European Innovation Index.
A kind disclaimer: non of the written above should be taken as an official business growth advice. We suggest getting in touch with the staff at Grai Ventures to underline a concrete proposal for collaboration.