OPPORTUNITY IN THECOLLECTOR MARKET

What are the “driving” forces behind the entrance and exit of the collectors market?

Team #1Jason Noren, Elisaveta Kristo, Casey McKinney, Sergio Cuellar “I do not collect just for

monetary incentive, I enjoy and appreciate what it looks like…”

Passion, enjoyment, personal connection, family, and the sense of happiness all describe the motivators of collecting “things”. The things that individuals collect are not evenly distributed in the market. Also, this market is very saturated with a plethora of options but not one dominating the arena.

Based on our survey, 62.7% of the respondents indicated they did not collect while 22% stated they have been collecting for a period of time and just maintaining their collection. Additionally, most collectors (47.6%) focus on quality or uniqueness of the item while 23.8% focus on building their collection in terms of volume.

From our detailed research, the opportunity to gain and sustain profitability in this market will be very difficult. Our recommendation is to unfortunately stay of out this market due to the volatility of how things are valued and amount of time and resources it would take to build and maintain a high demand inventory of “things”. The barriers for entry we consider to be high and the competition threat is very high as well. Loyalty, history, trust, and community are well sought after business advantages which cannot be replicated by a new entrance.

EXECUTIVE SUMMARY

RESEARCH METHODOLOGY

Social Research

Performed ethnographic research by doing fieldwork.

Visited 20 locationsTook 125 Pictures

Recorded 19 videos, 27 mins

Interviews

Conducted 21 interviews across the market domain including the three types of collectors and sellers in the industry

Survey

Created a 19 question survey to gather more insights on the demographics, feelings, and reasons why collectors started collecting and/or why they stopped

Online

Researched online to gather information on the collectors market in terms of financials.

This research did not provide insight on the financials of this market. Many “top” companies were delisted.

“Thrilling to find a new piece of collection” -

Anonymous

“It is a getaway from everything that is negative in life” - Anonymous

MARKET SURVEY

Exit Criteria

• Of the 3 that aren’t collecting anymore, it is unanimous that losing interest is the primary reason. Each of the 3 respondents also choose life changes, change in family structure and no time.

Collector Type & Collections• Majority are non-collectors (62.7%) with

second most as a maintainer (22%)

• Most are the quality (47.6%) type of collector followed with quantity (23.8%)

• Of the 19 collectors, the majority at 36.8% collect antiques while 10 or 52.6% collect other items included xmas décor, buttons, art, figurines & WWII guns

Demographics• Age: 52% within 30-39 / 33% above / 13%

below

• Gender is split; 52.4% female / 47.6% male

• Majority are married (72%) with at least a bachelors (78.6%) and working full-time (75.4%) with annual household salary of >$75K (63.9%).

• Most respondents live in the suburbs (63.9%) with at least one child (59%)

Motivators & Resources

• As expected, the majority choose passion, enjoyment, & connection (84.2%) as the reasons to collect along with makes me feel happy (62.5%)

• Majority get items at events (79%) such as flea markets, tradeshows, and yard/garage sales

• Most have been collecting for 20+ years (52.6%) but don’t collect as often as they used to (42.1%) and occasionally (31.6%)

• Of the 19 collectors, 16 or 84.2% are still collecting

Results from survey of 61 respondents

with 37 (62.7%) stated they are not a collector

MARKET FORCES

• Flea Markets

Mar

ket F

ootp

rint

Stak

ehol

ders

• Brick and Mortar Stores

• Flea Markets& Trade Shows& Trade Shows

• Online Auctions/Stores

• Individual Collectors

Tech

nolo

gy’s

Role • Local vendors no longer

necessary

• Pricing is more competitive

• Collectors buy without touch and feel experience

• Collectors lose local community engagement and encouragement

• The personal hunting experience becomes digitalized

Global Domestic Local

Comic Books

Antiques

Action Figures

Sports Memorabilia

Coins

Stamps

Dolls

Trading Cards

Target Market and Collector

Type

Quantity

QualityComprehensive

Souvenirs

MARKET ANALYSISASSESSMENT OF POWER IN THE COLLECTORS MARKET

Quality Quantity ComprehensiveSupplier HIGH

• Limited # of suppliers• Unique products

LOW• Multiple suppliers• Universal products• Low cost of changing

HIGH & LOW

Buyers HIGH & LOW• No alternative for some

products• Depends on # of buyers

HIGH• Low switching cost• Most likely multiple buyers

maintaining pricesHIGH & LOW

Competition LOW• Irreplaceable product• Few suppliers• High customer loyalty

HIGH• Not unique products• Low switching cost• Questionable customer loyalty

HIGH & LOW

Threat of Substitution LOW• Unique product• Self Defined• High customer loyalty

HIGH• Substitution can be easy• Questionable customer loyalty HIGH & LOW

Threat of New Entry LOW• High cost for entry• Specialist knowledge

required

HIGH & LOW• Possible low or high cost• High or low knowledge necessary HIGH & LOW

THE COLLECTORSName: Chung Lui – New Collector in Trading CardsAge: 20Occupation: Cashier & IT InternMartial Status: SingleChildren: NoneIncome: $15,000Education: Undergraduate at Temple

Characteristics: Introvert, shy, quiet, intelligentHobbies: Trading cards, video games, hanging outGoals: Video & software engineer

Needs

Desires

“I just want friends”

FrustrationsOrganizational structure,

Acceptance, Recognition Social skills and status

Community, Access & Elusive products, Positive

reinforcementBuild network of coin

collectors/dealers

Completing collection, mentor

Sell coin collection for profit, exit coin collecting

Not winning due to lack of resources/cards

Name: Dan Elder – Experienced CollectorAge: 60Occupation: AccountantMartial Status: Single - WidowerChildren: 2 - adultsIncome: $110,000Education: Masters Degree

Characteristics: Friendly, outgoing, community leader and knowledgeableHobbies: Sporting events, reading, volunteer coachGoals: Comprehensive collection and retirement

Name: Larry Grouch – Exiting CollectorAge: 41Occupation: Sales ManagerMartial Status: MarriedChildren: 3Income: $50,000Education: Bachelors Degree

Characteristics: Extrovert, family-oriented, passionateHobbies: Playing golf, traveling, coin collector/dealerGoals: Regional Sales Director, profit from coin collection

Can’t find missing items & lack of

community

Value decreased, losing money

Mentor for Chung / Elusive

Philadelphia item for Dan

“My collection

and knowledge

are my legacy”

Provides encouragement & community

for Larry / Elusive

collectible coins for Dan

“The government and internet is destroying the

value of my coin collection”

MARKET SYSTEM AND OPERATIONSCollection Types Motivators Reasons Venues Maintenanc

eExit

Decision

Quantity

Comprehensive

Quality

Self-DefinedHigh

Cost/ValueSocial Status

Self-DefinedLow

Cost/ValueEasy Access

Universal DefineHigh & Low CostEasy & Difficult

Access

CommunityFamily

Memories

TrophiesPotential

Profit

InternetBrick & Mortar

Specific Events

CommunityExcitement

ValuesPassion

Lack of Resources

Loss of SupportLack of ROI

Define Collection

Eliminate Others

Continue On

Enjoying the hunt

COURSE OF ACTIONS/RECOMMENDATIONOne course of action (COA) that we propose is to combine both quality and quantity type of collector characteristics. This particular business model would in essence be an All-You-Can-Eat style of collecting. It provides a wide inventory to keep collectors interested and possibly develop repeat customers by accepting customer requests. Furthermore, creating a forum and website for customers to interact and have a community-like atmosphere will help to maintain and advertise new and upcoming additions to inventory and invite new collectors to join the market.

The second and most preferred COA is to steer clear of this market. Based on the high percentage of identified non-collectors and volatility of collectibles is extremely high and unstable. Many product-lines are saturated and the market fluctuates too much from unforeseen societal changes. Also, it will be difficult to keep up with these changes and the enormous amount of resources and time to develop a demand-driven inventory on a consistent basis.

Route 76 Route 66

What is the “Best” route to take?

• Sports Memorabilia Business Plan. (n.d.). Retrieved from www.bplans.com• Garrett, J. (2013, December 19). Coin Collecting: How Large Is The Rare Coin Market?

Retrieved from www.coinweek.com• Egidi, C. Z. (2015, August 6). 5 Unspoken Rules of the Art Market New Collectors Need to

Know. Retrieved from www.artsy.net• McKinley, M. B. (2007, January 1). The Psychology of Collecting. Retrieved from

nationalpsychologist.com• Faris, D. (2014, November 5). The Problem with Using Psychology to Explain Collecting.

Retrieved from www.zmescience.com• The Topps Company Inc Revenue and Financial Data. Retrieved from www.hoovers.com• DC Comics. Retrieved from Wikipedia• Marvel Comics. Retrieved from Wikipedia• NewKadia. Retrieved from newkadia.com

SOURCES