Framebridge (A): Reimagining Custom Framing

Framebridge (A): Reimagining Custom Framing

On a crisp morning in December twenty eighteen, Susan Tynan, founder and CEO of the online framing startup Framebridge, walked the floor of the company's high-tech manufacturing plant in Kentucky. It was peak season, and there was a flurry of activity in the plant. Small robots glided along the concrete floor, carrying materials on upright racks to the framers, while larger robots scanned shelves for inventory control. However, several of the robots were not working properly, causing inventory buildups and production delays that Tynan knew would lead to unhappy customers. Further, the night before, she had received an unexpected email from Tim O'Shaughnessy, one of her first investors and staunchest supporters, that left her with a sinking feeling in the pit of her stomach. While he applauded the strong demand for the product, he was starting to express doubts about the strategy, and even hinted at concerns about the company's long-term viability.

Framebridge was founded in twenty fourteen with the goal of making custom framing easy, transparent, and affordable. Traditional custom framing stores offered customers a dizzying array of choices, had high markups, and lacked transparent pricing, resulting in frames costing hundreds to thousands of dollars. Tynan saw an opportunity to revolutionize the four billion dollar industry by leveraging digital technology and automation. For half the price of traditional retail stores, customers could choose from a selection of high-quality frames online and mail in their artwork, receiving it back a few days later, ready to hang. By making framing affordable, Tynan believed she could both take market share and expand the category.

Since its founding, Framebridge had raised over sixty-five million dollars in venture funding and hired a team of over two hundred people. Annual revenue had grown to over twenty million dollars, and the company had nearly one hundred thousand customers, over one-quarter of whom were first-time framers. In late twenty eighteen, the company opened two physical stores to test a retail strategy. However, despite strong consumer demand, the company still struggled to achieve economies of scale in operations and had yet to break even.

Tynan knew she could not continue to raise funds indefinitely. Framebridge needed to reach profitability soon, or it would not survive. Central to its strategy was scaling operations to achieve cost efficiencies in manufacturing. She had to determine the right path forward. Would doubling down on automation achieve operational goals, or did the company need to rethink its vision? Would developing a retail strategy propel brand awareness or add unnecessary complexity and cost? Her investors' patience was wearing thin. She knew that she had to find a path to profitability to survive.

Framebridge (A): Reimagining Custom Framing

Brief Background on Custom Framing Industry

Modern picture framing originated in twelfth century churches, where frames first appeared as immovable architectural features adorning paintings. During the Italian Renaissance of the fifteenth and sixteenth centuries, framed art expanded to the homes of wealthy nobles who commissioned and displayed artwork in their estates. Over the following centuries, art collections flourished, increasing the demand for and variety of styles of picture frames. Builders began designing and crafting frames to match consumer preferences, which ranged from ornate, gilded frames to simple, modern styles. Over time, framing stores began emerging all over the world.

To custom frame, most framing shops required customers to bring artwork to their stores, where customers met with a skilled framer to select framing options. Customers selected the frame molding, which was often made of wood or metal and could include premium finishes and designs; glazing, a UV protective barrier, often glass or acrylic, that prevented artwork from fading; and matting, acid-free decorative mats that served as a protective barrier, separating the art from the glazing. A typical custom frame shop offered over two thousand moldings and hundreds of matting options, creating a plethora of choices for consumers. Depending on selections, prices for framing a single piece of art could range from a few hundred dollars to a few thousand dollars.

U.S. custom framing was estimated to be a four billion dollar market and was highly fragmented, consisting of a few large, national retail stores such as Michaels and Hobby Lobby, and nearly six thousand mostly single-location, owner-operated enterprises. In recent years, online poster and art businesses and national retailers like Michaels began offering online framing services, increasing pressure on traditional mom-and-pop framing stores.

The largely owner-operated U.S. picture framing store industry consisted of custom framing (seventy percent), ready-made frames (fourteen percent), photo frames (eleven percent), and crafting supplies (five percent). Custom frames were special-ordered in small batches from wholesalers and could be made in any size or style. Unlike custom framing, ready-made frames were produced in standard sizes and limited colors. Photo frames were also ready-made, but were smaller and intended for tabletop display. Facing headwinds both from changing consumer tastes and increasing competition from online retailers, picture framing stores industry revenue declined from twenty twelve to twenty eighteen at an average annual rate of one point two percent to two point three billion dollars, while the number of picture framing stores declined from seven thousand five hundred to six thousand stores.