Focus on e-commerce: why high-end luxury goods are adopting NFTs
Banksy got engaged to the NFTs with a work called “Morons”. – Copyright AFP Argent SHARMA
Non-fungible tokens (NFTs) are becoming increasingly popular as an e-commerce product. An NFT is a single, non-interchangeable unit of data stored on a digital ledger (blockchain). The growth of DTVs is now reflected in high-end consumer goods. So why would a well-established luxury goods retailer turn to these intangible assets?
To learn more, Digital journal met Joe Ladin, CEO of SFLMaven
Digital Journal: Can you provide a brief overview of SFLMaven Corporations?
Ladin: We are an online real estate jewelry store that has a weekly Thursday night auction on eBay with over 200 unique pieces. What’s really special about our auctions is that they’re not all unqualified. This means that the bidders decide the value of the coins and that goes for everything, engagement rings, diamond studs, designer pieces signed like Tiffany & Co., Rolex, etc. We also have a wonderful selection for those who prefer to “Buy It Now.” At the heart of my business model is always to be sure to provide our customers with quality and beautiful pieces that can be truly valuable. Over the past 18 years we have been based on eBay, but recently our business model has evolved and we are now also present on 1stdDibs.com.
DJ: You started your business with an e-commerce model over 18 years. Why then did you decide to sell only your luxury products online?
Ladin: Back then, my main reason I focused on shopping online was because it was the only way to reach a global customer base and it appealed to me. Even though shopping for luxury goods or buying anything in general online didn’t seem natural to most, it still made sense to me. Another reason was that I was able to enter a market where traditionally a business owner had to spend hundreds of thousands of dollars to have a great showroom to woo a potential client. However, with my online store I was able to skip all of this and still have my skin in the game.
DJ: How has the pandemic impacted your business?
Ladin: The pandemic has catapulted online shopping like a rocket. With everyone staying at home, the convenience factor of shopping online has really blossomed. You can see this across the board in many areas of the lifestyle. SFLMaven has been considered one of eBay’s best sellers for 18 years now, which means we have high customer satisfaction and also stand behind the authenticity of our products. This means that people who may not have considered buying jewelry online feel reassured and now shop with us. Nowadays, the technology is so advanced that people buy our parts directly from their phones. It’s truly amazing how far technology and its leadership has come.
DJ: SFLMaven recently announced the launch of a new Collectibles Marketplace strategy, what does that imply?
Ladin: Our collectibles strategy is really exciting and suits us perfectly. Something that we are noticing more and more is how people are diversifying their investment portfolios and collectibles is one of those avenues. We will expand our reach into other areas by acquiring various types of collectibles companies. Using the strength and trust of our brand, we will create synergy on many levels between categories, which will allow us to deliver more value to our customers.
DJ: Why are you focusing on NFTs as part of your collectibles strategy?
Ladin: I am someone who enjoys doing business in the present but anticipates the future and NFTs are the future of art. Having an ecommerce business in 2004 was unheard of, but it felt right and it felt like this was where the future of shopping would evolve. The fine arts world appreciates and values history and pieces that have period significance. With the NFT art market still in its infancy and technology evolving at rapid speeds, I think these pieces could be invaluable in the future. Think about the first editions.
DJ: What kind of trends do you see with NFTs and other collectibles?
Ladin: Qualified collectors understand how valuable it is to invest early in a particular niche. This can make the difference by making a moderate profit to, in other cases, millions. When you are focusing on articles that have early additions, getting there early is crucial. This is exactly what the NTF market is. Over the past 20 years, technology has changed the way society works and looking to the future, it is easy to see that technology will only become more and more integrated into our daily lives.