3b – TAM/SAM/SOM

TAM:

• We estimate our TAM to be all affluent online consumers globally that want to purchase a hand-crafted, indigenous product. We estimate the size of the market to be around $120B. We base this off of the existing value of the entire global handicrafts market at $752 Billion and the proportion of affluent consumers making up 16% of the online population. With a target market penetration of 1%, we estimate our TAM to be $1.2B. 
  • Global handicrafts market is $752.2 Billion (2022) 
    • Market Forecast in 2028:  $1296.6 billion (USD)
    • Market Growth Rate (2023-2028): 9.1%
    • Handicrafts Market Size
  • “Globally, affluent consumers make up 16% of the online population.” 
    • Global Web Index Audience Report 2020
    • Affluent Customers Report
  • 16% of $752.2B = $120B

SAM:

• We believe that AICC can eventually serve more than purely the luxury goods market, and instead move into the handicrafts market. We estimate our SAM to be all affluent U.S consumers looking to purchase a hand-crafted, ethically sourced, personalized piece of art or product. We estimate the size of the total market to be around $75 billion. We base this off the existing value of the entire US handicrafts market at $268.3 Billion and the market of “affluent adults” in the U.S representing 28% of all consumers. Having a target market penetration of 1% would give us a SAM of $750M. 
  • Handicraft Markets , Affluent Adults

SOM:

• We estimate the current serviceable obtainable market is  affluent U.S. consumers with luxury purchasing tastes who have an interest in Central American or general indigenous culture or ethically produced indigenous crafts, as well as communities supporting the indigenous people, and those valuing their crafts and heritage. We estimate the value of this market to be around 64 million dollars. We calculate this through the value of the luxury market, which is 75.6 billion dollars, with online sales (by which AICC operates) making up around 17% of the market. Assuming that 0.5% of all luxury goods consumers have some interest in Central American/indigenous culture, this gives us an estimated SOM of around $64 million.
  • We believe that this is the current serviceable obtainable market as AICC currently markets its indigenous crafts as luxury/exclusive items, and centers its identity around its cultural authenticity/ethical practices, which is its main selling point for customers currently.