Digital Presence

Chapter 2

Before moving any further with the creation of a digital presence, it is important to understand where the company is actually situated both internally and externally. For this reason, the intern conducted a situational analysis of the Gemini Gallery. The situational analysis is made of two parts (1) PESTEL Analysis, for external factors and (2) SWOT Analysis for internal factors.

Part 1: PESTEL Analysis

Political

In the Netherlands, Art Law vigorously protects the creator (artist) and consumer (client /buyer)

Overall, Dutch law is in the favor of Museums and Art Galleries due to their contribution to Culture and Tourism. Well-developed segments within the Netherlands.

Economic

According to Statista, Museums in the Netherlands are a privileged class of enterprises. They benefit from three types of subsidies (1) governmental, (2) regional, and (3) from the municipality. In 2020, the total revenue of museums in the Netherlands reached 977 million euros. This figure does not accurately depicts the case of Gemini Gallery, but it creates hope and empowerment; knowing that the chosen industry is on a growing trend. Furthermore, in 2020, the number of visitors to Art Museums in the Netherlands reached 5.3 million. Underlining the fact of developed culture and tourism industries, amidst the global pandemic.

Social

At the local level, Eindhoven attracts both tourists and expats. As an example, in 2022, ‘Dutch Design Week’ had over 350 thousand visitors. On a similar note, the High Tech Campus registered over 11,000 expats from 85 countries, while ASML has over 30 thousand employees. Combining this information with the fact that Eindhoven is home to 20 Art Exhibitions, Gemini Gallery finds itself in a privileged area. Given the high flux of visitors and wealthy individuals.

Technological

On the 1st of September 2022, Gemini Gallery did not fully leverage the technological capabilities of Augmented Reality, Virtual Reality or Blockchain Technology. The development of handheld devices (phones) made it possible for anyone to capture and create digital experiences, and yet, this technology remained a mystery for Gemini Gallery.

Environmental

Given the industry in which Gemini Gallery operates, the energy crisis (IEA, 2022) and the chip shortage (Power&Beyond, 2022) did not pose a threat to this particular art exhibition. Compared to other industries, the carbon footprint of Gemini Gallery can be considered insignificant.

Legal

Under EU Consumer Law (and long-distance buying regulations), the professional retailer must inform the consumer (client) about a possible 14 days return after the sale (without the need to provide an explanation). Failing to comply with this provision, results in 12 Month return term. This aspect was not clearly specified on the Gemini website.

Part 2: SWOT Analysis

Strengths

The artwork collection of Gemini Gallery is the result of organic growth and prosperous relations between the gallery owners and the featured artists. Gemini Gallery started as a hobby for art and grew to be a major outlet for Polish artists. Given the professionalism of the gallery owners, together with their positioning in Eindhoven and their ability to speak three languages, Piotr & Agnes Palimaka were able to establish a resourceful enterprise. In addition, their willingness to learn, try and improve are the crucial factors of success in the long run.

Weaknesses

Without previous experience in running a gallery, or in digital marketing, the gallery owners had to learn while doing. This factor has slowed the potential growth of Gemini Gallery.

Opportunities

At the moment of writing this paper, no art gallery in Eindhoven provides NFTs or 3D Models of their artworks. This aspect could result in a competitive advantage when executed well.

Threats

Eindhoven is considered a ‘BrainPort Region’ given the high number of bright minds. There is nothing to stop competitors from stealing ideas or clients from Gemini Gallery.

Part 3: Interpretation of the Situational Analysis

Gemini Gallery is a relatively new art exhibition in the popular city of Eindhoven. Given the relationship with the artists and the niche collection made of ‘Polish Artworks’, Gemini has a meaningful competitive advantage. Furthermore, the owner’s willingness to learn and discover new means of digitalization could result in steady growth over time. The external factors are also working in the favor of Gemini, as the Netherlands has a good reputation for tourism and art collectors. It is safe to assess that Gemini has strong potential given the circumstances.

2A. Methodology and research process

Academic Papers

The comprehensive study conducted by Habelsberger, B. E. M., & Bhansing, P. V. (2021) with the title “Art Galleries in Transformation: Is COVID-19 Driving Digitisation?” underlines the considerable shift of art galleries towards digital multi-channels. As mentioned in their research paper, art galleries on all levels could benefit from digitalisation. Even though art was reluctant to digital innovations in the past, the lockdowns enforced during COVID-19 forced gallery owners to implement alternative means for displaying works of art.

On a similar note, an article published in 2021 by EMPERIA, lays down a guide with digital marketing tips for art galleries to create a brand identity and stay competitive in a digital landscape. The article includes 5 steps that would benefit galleries in the digitalization process.

Methodology

As suggested by EMPERIA, a complete online presence starts with (1) storytelling and (2) outside-the-box thinking. Furthermore, galleries should (3) change things up. Meaning that the online experience should be “as interesting as the gallery itself”. Last but not least, galleries should (4) champion their artists and also make use of (5) social media.

For the internship at Gemini Gallery, Andrei decided to follow the suggestions laid down by EMPERIA and implement their advice. Worth noting here is that Andrei’s focus was not only to complete the steps but also to educate the owners of Gemini Gallery for independent action.

For this reason, the main research question becomes “how to approach the digitalisation of Gemini Gallery in a manner that the gallery owners will not be dependent on external help?”.

In addition, the following research questions have been derived as well: (1) “what online tools to use?” and (2) “what is the logical set of events required for a smooth implementation?”.

2B. Evidence

Project Questions and answers:

"What is a great website builder that is highly customizable and easy to use?”

At the moment of undertaking the internship at Gemini Gallery, the art exhibition had already owned a website and a domain: ‘GeminiGallery.nl’. The website was built by a freelancer using WordPress. In addition, the domain was hosted by a service provider named ‘Hostinger’. Given the outdated design of Gemini Gallery and the poor performance of WordPress, a brand-new website was required. While searching for Website builders, most of the companies market their product as ‘highly customizable and easy to use’. Considering the particular case of Gemini Gallery, the new website builder had to match the following criteria: “easy to use, highly customizable, provide E-Commerce options, provide domain hosting, provide customer support”. Narrowing to the top 3 most common results, the following list was built: (1) Wix, (2) Squarespace, (3) Weebly.

Wix vs Squarespace vs Weebly

After seeing this comparison, the possible options narrowed down to (1) Wix and (2) Squarespace. Delving deeper into the research, the intern discovered that Squarespace offers a free staging website and 0% Transaction Fees; compared to the 1.9% + 0.3€ per transaction at Wix (Wix, 2022). As the research was complete, the intern decided to continue with Squarespace.

“How to develop a step-by-step marketing strategy for Gemini Gallery"

While researching this question, Google returns a large variety of blogs and websites. Among the most common ‘step-by-step’ guides, the recommendations are to (1) know the artworks, (2) promote the artists, (3) talk to the audience and (4) attract visitors to the upcoming events. However, a more comprehensive result was returned by ChatGPT (OpenAI, 2021). By introducing the following prompt:

“Study Case: "Gemini Gallery is a new, modern and elegant art exhibition. They are promoting Polish artists who create beautiful artworks. Unique sculptures, paintings, and works of glass. Guests are invited to visit the physical Gemini Gallery to view and interact with the artwork. Gemini Gallery also has a digital gallery where visitors can view the artworks as 3D Models with Augmented Reality.

The target audience is wealthy individuals, executive officers, art collectors, artists and wealthy creators. Gemini Gallery does not have any ongoing marketing campaigns."

Write a step-by-step marketing strategy for Gemini Gallery to reach its target audience.

Answer provided by ChatGPT (OpenAI, 2021)

1. Develop a strong branding strategy: Create a clear and consistent brand identity for Gemini Gallery that positions the gallery as a modern and elegant art exhibition that promotes Polish artists. Use this branding consistently across all marketing materials, including the website, social media profiles, and printed materials.

2. Utilize social media: Create profiles on popular social media platforms such as Facebook, Instagram, and Twitter and use them to promote the gallery and its exhibitions. Share high-quality images of the artwork and behind-the-scenes footage to give followers a sense of the gallery's atmosphere.

3. Create a website: Design a website that is visually stunning and easy to navigate. Use the website to showcase the artwork, provide information about upcoming exhibitions, and offer online ticket-purchasing options.

4. Utilize SEO: Use SEO techniques to make the website more easily discoverable by potential visitors. Optimize website meta-tags, website content, and keywords for Google search.

5. Networking and Outreach: Reach out to individuals and organizations in the art industry and build relationships. Attend art fairs, galleries, and networking events to meet potential clients and art collectors.

6. Leverage AR technology: Highlight the Gallery's augmented reality feature by creating a digital campaign, targeting technology enthusiasts, and showcasing the benefits of how this technology enhances the experience of viewing art.

7. Influencer Marketing: Find influencers in the art world with a sizable following who align with the target audience and offer them to promote the gallery and its events.

8. Use Email and Direct mail: Use email and direct mail to promote upcoming exhibitions and events, and to keep previous visitors informed about the gallery's activities.

9. Measure and adjust: Monitor the results of the marketing efforts and make adjustments as needed to ensure that the marketing strategy is reaching the target audience effectively.

Overall, both ChatGPT and online articles suggested a similar marketing approach.

(1) Establish a digital brand, (2) create consistent content, and (3) promote the enterprise on all channels available. The answer of the ChatGPT proved pertinent enough to be considered valid. For this reason, the intern decided to carry on with the research and use the answer of ChatGPT as a guideline for the marketing campaign of Gemini Gallery.

“How to create 3D Models from physical items?”

The 3D Models can be either created digitally or by scanning a physical object. In the process of scanning physical objects, either through pictures or video, the extremities of the objects are recorded. By uniting all the extremities, a mash of points is created. The process of analyzing and recreating a mash is called rendering the mash. While researching this question, two answers kept recurring. One option to create 3D Models is by making use of ‘Photogrammetry Software’. The other option requires LiDAR sensors.

Photogrammetry works by “deriving precise measurements from overlapping photographs”. For this technique to work properly, the higher the number of images, the higher the quality of the scan. It has to be noted, that camera and photo capabilities also influence the outcome of the rendered mesh.

On the other hand, LiDAR technology uses a sensor to scan objects in 3D, by emitting laser beams and measuring the time it takes for them to bounce back. This allows LiDAR to create detailed 3D point clouds of the surrounding area, which can then be used to create 3D models. LiDAR is highly accurate and can be used in a variety of environments, but it is also relatively expensive and requires specialized equipment and software.

In summary, both Photogrammetry and LiDAR are viable options to create 3D models from physical items, each with its own strengths and weaknesses. In the case of Gemini Gallery, the intern will try both options and continue with the one that renders better results.

“How to create NFTs in 2022?”

NFT stands for ‘Non-Fungible Token’. This means each unit is unique and cannot be falsified. Any digital file can become an NFT when it is stored on a blockchain. In 2022, there were over 1000 different blockchains. However, only a few blockchains are used for the use-case of NFTs. The major projects are Ethereum, Polygon, Solana, and Efinity. To create and distribute NFTs, the following steps are required:

1. Create the digital asset. The first step is to create the digital file that will be represented by the token. Digital files can be 3D Models, pictures, music and any other digital file.

2. Create ‘Smart Contract’: Smart contracts are computer programs with the terms of agreement embedded into the code. They are executed automatically when certain conditions are met. For example, Gemini Gallery stipulates in the smart contract that 10% of the NFT selling price will go to the artist, 8% to Gemini Gallery and 2% the creator of the NFT. When a digital asset (NFT) is sold, the previously mentioned distribution will be executed automatically by the smart contract.

3. Choice of Blockchain. Each blockchain (Ethereum, Polygon, Solana, etc) has a different set of rules and different costs of usage. This aspect has to be investigated to discover which blockchain suits the case of Gemini Gallery best.

4. Minting the NFT. Minting is the term used for referring to the actual creation of an NFT. When the digital file and the smart contract is ready to be deployed on a certain blockchain, the minting process ensures the creation of a token representing the digital file. Tokens are then available to be bought, sold, and traded like any other asset.

5. Market the NFT: Once NFTs are created, they can be published on a marketplace. Examples of marketplaces for NFTs are OpenSea, Rarible, and MagicEden. Though there are many other marketplaces, those mentioned are the most popular ones.

To be noted, every single participant in the previously mentioned steps must have a digital wallet. Therefore, Gemini Gallery must have a wallet, artists must have a wallet and the clients must have a wallet as well. As opposed to a regular bank account, digital wallets are solely owned by their creator.

The explanation provided above barely scratches the surface of Web3 and Blockchain. For this reason, the complexity of the subject and the educational requirements necessary for the creation of digital wallets and NFTs falls outside the scope of this internship. The owners of Gemini Gallery and the intern agreed to postpone the creation of NFTs until a suitable time.

In conclusion, the endeavor of creating digital assets is worth pursuing; regardless of the limitations reached by this research paper.