Interview with Shopworn a verified genuine brand marketplace for fashion and luxury
Interview with Shopworn a verified genuine brand marketplace for fashion and luxury
Transcript by Otter.ai (original)
Unknown Speaker 0:03
Welcome to the retail tech podcast. My name is Darius Vasefi your host and in this podcast I speak with leaders and entrepreneurs involved in all aspects of retail and e commerce. This interview is being recorded. So we need to say this for clubhouse rules. So all the people that are onstage, their audio will be recorded and then it'll be published on retail tech podcast.com. Today I'm speaking with Larry Birnbaum, CEO of a company called shopworn and Isaac Zakinov chief merchandising officer. They work, they help consumers find brand products, way below market pricing. And these are not Pre Owned products. They're pretty new condition. So we're gonna go through and learn a lot more about how shopworn was created and how things are going right now. Larry, and Isaac, thank you for joining me.
Unknown Speaker 1:07
Thank you for having us.
Unknown Speaker 1:09
Thank you, Doris.
Unknown Speaker 1:10
We're thrilled to be here. So let's start talking about what's the background and how shopworn got started.
Unknown Speaker 1:23
Great, well, shop one was, was conceived in 2015, as we saw that there was really a void in the luxury marketplace, for stores and brands, to to move past these and merchandise in a safe and protected environment, not having their items sold on the internet as brand new with manufacturer's warranty, and in essence, damaging the brand's equity. So we saw this void and thought we needed to develop an avenue where brands and stores could move out past season merchandise, and have that habit sold, again, in a controlled environment where the consumer is the first to own that luxury product product that's only been handled in the store may have been tried on, but it is not Pre Owned. And have everything sold. Excuse me. Everything sold under one roof, thereby not damaging the brand's equity.
Unknown Speaker 2:42
Okay, great. Now, I think you know, when we talk about this kind of a business model, I think a lot of you know, some other companies come in in people's minds, like the real real and poshmark. So and I know you're different than that. So if you're Isaac want to explain the difference.
Unknown Speaker 3:04
Yeah, absolutely. real real is a very interesting concept, but a very challenging concept. At the same time. When you're dealing with a Pre Owned items, you really don't have a full provenance where the product came from. That's where unfortunately, you're seeing more and more cases, when people are purchasing their products from the real real while they do have over 100 authenticators in place. Their authenticators can only do the best they can. But at the end of the day, it's only the brands themselves that can 100% confirm authenticity of the product. And that's where we've seen Chanel and others are having a very hard time and suing companies like the real real because at the end of the day, unless the brand has endorsed and fully committed that product is authentic. And that's where shop world stands on its own shop one unique sourcing. a strict supply chain comes only from authorized retailers, the brands boutiques or the brands themselves, which allow a shopper and not to have any authenticators and staff on staff and guarantee 100% authenticity authenticity of every product we sell. Okay, day. It's one of the most critical components for for a company to be able to be fully transparent from the brand all the way through the consumer.
Unknown Speaker 4:38
Okay, great. And what about some guilt used to get the products directly from brands in the past? correct?
Unknown Speaker 4:48
That is correct.
Unknown Speaker 4:50
What happened with their business in your opinion.
Unknown Speaker 4:54
So, a couple things one, the guilt model and other models that are called themselves flash sale bottles, those models really give them an opportunity only a 40 an hour sale opportunity for a brand to present their product to a limited audience and get them the opportunity to buy the product and then disappear. What we saw the void in the market was for a marketplace for shopworn goods, which Chaplin is an industry terms that defines a product that has been offered at its full price retailer, but has never been sold to the consumer, we saw that the brands are having a very tough time, especially when there is a retail to the ETL transition happening, that the product itself is finding in an authorized locations. So back the guilt for a moment, while it only gives the opportunity for 48 hour window to the brand to expose to show the product to the consumer shoplet is a seven day 24 hour opportunity for the brand, as well as to the consumer to be able to purchase a guaranteed authentic, never been used item for the first time. And a great substantial savings, of course.
Unknown Speaker 6:22
Okay, great. So So Larry, I'm sure you have a very extensive background in the space. What were some of the signals that initially told you that this would be a good business model? And how did you like, qualify those assumptions? So
Unknown Speaker 6:41
great question. You know, there's always been something going on in the world. Of course, now, as as the world we're all dealing with Coronavirus, but prior to that, there was Zika. In South America, there were sanctions in Russia. And we know all these authorized retailers had a problem with goods that they couldn't move because some of them base their their purchases on their tourist business. But then that tourist business stopped, or the tourist business changed completely. And they had to move out this merchandise so they could make room on their shelves. For the newest. The newest novelties as well as styles may be that a different a different visitor was looking for meaning something might be too large for a certain consumer, so they had to bring in smaller styles, if you're referring to watches. So we just saw that there was a real void in the market that protected, again, protected the brands from having all their goods sold on the internet as brand new with the manufacturer's warranty, and and and damaging their equity. So we when we started out in 2015, I would say almost 100% of our business came directly from the authorized retailers. But as we have grown, and brands have heard of our concept and what we were doing, that has changed over the past five years, we're now I would say about 87% of the merchandise we sell comes directly from the brand, where they have either taken it back from the stores or their boutiques, and Android directed their store or boutique to sell the goods to us.
Unknown Speaker 8:45
Okay,
Unknown Speaker 8:45
and the industry, the luxury industry needed, needed this type of concept, this type of platform to sustain the health long term of the industry.
Unknown Speaker 8:59
And there is I would like to add a few more points to what Larry just said. We haven't when Chaplin was born, we haven't even planned what kind of value on top of all the values we plan that will bring to the industry itself as retail was transitioning to the ETL. And we're seeing that as never before today. Where the brands are building their own infrastructure direct to consumers. It is as never before important for them to support and to take back the unsold goods from their authorized retailers and the boutiques and make sure that those shelves are filled only with the new wisdom the best and finding and having a full transparent platform where the whether they can trust that their shop when goods will be sold the shop world is giving them an absolute full control over an off price market, as well as over there, in addition to their full price market that they already have. Thank you.
Unknown Speaker 10:09
Okay, great. So, going a little bit deeper into the business model, how can you share how large is the company right now? How many people?
Unknown Speaker 10:22
Absolutely. Larry, you want to take that? Sure.
Unknown Speaker 10:25
We, when we started out five years ago, we started with, with three or four people. And today, we are currently at 18. Strong and expanding. We have recently opened up an office in in Hong Kong, and we have expanded into the Asian market. We have two people situated there. Our company has grown five years, almost six years running now 30% year over year, and we expect to do at a minimum 30% this year, if not grow by 40 or 50%. Going forward, we are really expanding the business not only expanding the lines we sell as well, when we started out, we started out just selling watches. And within three months, we switched decided that there was so many untapped. untapped excuse me, untapped areas that we needed to go into. So we expanded immediately into jewelry. And then in the past year, we have expanded further into accessories like handbags, and sunglasses, and wallets, and belts and writing instruments. So what the The world is there, we've only scratched the surface to grow this company, to what we know it can be.
Unknown Speaker 11:58
Okay, great. Can you give us an idea about I don't want like exact numbers. But can you give us an idea about the revenues? Like you know, that you expect this year?
Unknown Speaker 12:11
Sure. This year, we expect to do at a minimum of approximately $18 million.
Unknown Speaker 12:18
Okay, great. So that's, that's a million dollars per team member. That's pretty good.
Unknown Speaker 12:24
There you go.
Unknown Speaker 12:27
You're always catching up with Apple. Now, you know, I, I do a lot of work with the tech side of the retail and e commerce. So who handles your tech? Do you have an internal tech team? Or are you working with agencies
Unknown Speaker 12:46
we work with it with an agency and individual who handles all our tech from from an internet side, as well as we have someone on on board or on retainer, that helps us from a system side internally, we're currently switching from using QuickBooks, which doesn't really work great for our company to a huge Microsoft System, Microsoft Dynamics. So we're able to generate, you know, many more reports and information that is needed for a growing company. Okay, great.
Unknown Speaker 13:26
So, if I understand correctly, you actually purchase the product from either the brand or the retailers, correct?
Unknown Speaker 13:35
That is correct. That
Unknown Speaker 13:38
right. Okay.
Unknown Speaker 13:40
So one of the things that sets us apart sets us apart from many if not all of the other platforms out there because they don't buy they take what you know what's offered to them on on demo, if you will on consignment and the brains that have no guarantee that the items are gonna sell.
Unknown Speaker 14:01
Right? And you also handle any kind of warranty and returns yourself directly.
Unknown Speaker 14:09
Yes, we do. We offer a two year warranty on everything we sell comes with our warranty because we we want to give the consumer as as seamless a an experience as possible. It doesn't that the relationship does not end once the customer gets the item. We want them to be happy. We want to be speaking to that same customer 20 years from now. And we feel doing all that service in house and having someone pick up the phone not getting a press two for you know two for sales three for that is very important part of our business model.
Unknown Speaker 14:49
Okay, there is I would like to add to that as well, just as our customers know the chain of custody for all their shopping purchases. So to to our Brand Partners know exactly what happened. happens with the inventories we saw with source, every brand partner of ours. In addition, us just purchasing the product outright get quarterly sales report indicating exactly where the product was sold, and what kind of product was sold, where the product was sold helps with the marketing, all of a sudden, and brand sees that in Nebraska, they never have a full price retailer. And they are have their audience there as well. So they can use that for their marketing needs. What has been sold helps them to understand if there is other boutiques or retailers that they need to support. And they sitting on something from a past season, that can be obviously be taken out out of those shelves replaced with the newest and the best or more desirable product for that region, in that part of the world. Because shop one does operate globally, in addition to the 18 people, or a little over 20 people now that we have that Larry mentioned, we do have almost 11 people in different parts of the world that are working with retailers as well as the brands themselves on behalf of shopworn in order to make sure that the past season products are being sold to shopworn with a full transparency for the brand. Thank you.
Unknown Speaker 16:22
Okay, great. Now, just a quick reset to the room. This is retail tech podcast interview with the shopworn leaders, Larry Birnbaum, and Isaac Zak enough. This interview is being recorded, I will open it up to audience questions. So if you'd like to come up and ask a question, please raise your hand and in a few minutes, I'll bring you up and your audio will be recorded. Just a heads up on that. And then I'll I'll release this interview on on the website, probably in about a week. So let's talk about products. What products are selling best for you?
Unknown Speaker 17:08
Isaac, you want to grab this one? Oh, absolutely.
Unknown Speaker 17:13
Well as while we did store it, and 2015 as a watch company, a few. Literally A few months later, we were able to already immediately added the jewelry another and started to add other categories. Fast forward today, watches and jewelry are definitely still a majority of our part of our business. But luxury accessories, being handbags or sunglasses, or writing instruments or other smaller or larger leather goods are picking up the speed like I have never done before. And we're very excited. Because shopworn as a concept allows allows us to go after all luxury brands and categories, we're obviously being extremely careful in terms of our growth and making sure that we do it right. And not just right away. But we're very excited that so far, every six months, we're introducing a new category. And while we have a little over 85 brands on our side, across all the categories we currently carry, we will be somewhere around 140 250 brands by the end of this year.
Unknown Speaker 18:26
Okay, that's great. So watches and jewelry are the top and then other categories are starting to ramp up. Yes, okay.
Unknown Speaker 18:36
Correct.
Unknown Speaker 18:36
darious I'd like to just add something that I think you'll find interesting, you know, as the as the pandemic started, and everybody in the world started doing zoom meetings, we noticed a very interesting trend. And that was that jewelry sales picked up, but only jewelry sales pretty much from the chest up. So necklaces and earrings picked up because people wanted to see the or to have those things on in their zoom meetings, no one could see what was below the waist or below the chest. So things like rings weren't as popular as the pandemic started. And that was a very interesting trend that we that we noticed and try to jump on as well.
Unknown Speaker 19:24
Yeah, that's a very interesting point. I think that probably the term chest up is a good way to explain the world in the last year. Yeah. So we are really talking heads. Right.
Unknown Speaker 19:42
And I believe the clothing companies are saw the same thing I have. I've spoken to quite a few department store buyers and they saw that the tops are sauce. I sold a lot more than the dresses and dresses in the pants.
Unknown Speaker 19:55
Yeah, yeah. I hear the same. Now. What about it? Geography, your your selling global, correct? Yes. Which areas are the best performing for you which geographies?
Unknown Speaker 20:12
Well, we saw the greatest opportunity in China, which was our first expansion of our website back in, we started back in March, April of 2020, where we converted our site in to simplified, simplified Chinese and Mandarin, and allowed the Chinese people as well to pay with their low in their local currency with their local credit cards with their local payment terms. And that expansion is continuing this year into Mainland China. So our site will be more efficient, faster and give, give the shoppers a much more cohesive and seamless experience. We are also expanding and starting the conversion of our site into Korean as of last week. So once we I think once we finished out this year in, in the Asian market, we will probably expand to some some countries within the within Europe, but we're not sure which ones yet. We will do some analysis on from our books and see. See, which makes the most sense.
Unknown Speaker 21:37
Okay, great.
Unknown Speaker 21:39
What about
Unknown Speaker 21:39
customer acquisition? How do you acquire customers? Larry?
Unknown Speaker 21:48
Yes, yeah, absolutely. Obviously, we do the pay per click, like everybody else does. And we have a you we have an email list where people people sign on for and they get a discount. We are in the process now
Unknown Speaker 22:07
of of
Unknown Speaker 22:10
looking at the text message advertising, but not to be intrusive, someone would have to sign up for it, and allow us to send them text, it's not something we would do. randomly, we tried to be very respectful of people's time and privacy and inboxes. We, obviously we're on social media, we work with some influencers. And we're always looking to grow, our Director of Marketing is always out looking at best ways for us to to obtain customers. And of course, tremendous amount of our customers come as referral business, which, as you know, is the best advertising you can get.
Unknown Speaker 22:51
And I would like to add to that, as well. In addition to a regular social media, there's obviously tools that are available there, we saw an immediate opportunity, when unfortunate, were an unfortunate situation that the world found itself last year, called COVID. We saw while the stores are closed in their favorite local sales, people are no longer there available for people to go and be able to see them and meet them and buy their own gifts. We also understood that there is a large population now of people that are just not comfortable yet buying luxury higher end pieces online. So that's how inside the vault was born, inside the vault, that shopworn is a monthly event. It's an hour shell, where our customers are able to either send us their requests or questions prior to the show, either see, look at the product life that they're seeing on the website, either. It's just asking different type of questions in addition to whatever they would like to know, beyond just picking up the phone and speaking to us, or engaging with us at that one hour show where they're going to be able to see the products that just made it to the vault, but didn't make it to the website. Yes, yet. And we felt that these type of transparency and real inexperience that we can create as close as possible to that audience to the to the customers who are looking to build the relationships, new relationship, which is not easy in today's days, when you don't really go and see people as they normally would use to do so. That would make it a lot easier for people to see that there are human there are people behind the screens. There are people behind their phones. We of course The minister would call in and request a video and live video one on one with our specialists and showing certain products that they would like to see live. pictures are good. But having a conversation with someone seeing something like seeing something as in person as possible, only helps to make sometimes a difficult decision on the purchase. When it comes to a higher end numbers, either it's a watch, or a jewelry or anything else that they wish to purchase from us.
Unknown Speaker 25:33
Right.
Unknown Speaker 25:35
I'd like to add to that, that in May, we are going to have an inside the board show with actually one of our Brand Partners, which I'm not going to mention now, one of our Brand Partners, where they will not only show our audience, the new products that they're coming out with for 2021. But they will also have a little discussion about their brand and give a little tour of their facility. And the one hint I will give is it's going to be a watch company and they will have their watchmakers on to do a little explanation as well. So we're very, very excited about that opportunity to have a brand on our show with us. And we hope that's going to lead or no, that's going to lead to many more opportunities with with the luxury industry.
Unknown Speaker 26:33
Great. Yeah, that's, I think that you're touching on in the with the live stream shopping space, which is something that I'm also involved in. And you know, we'll probably touch on that later. So Sarah has joined us on on the stage and Hi, Sarah.
Unknown Speaker 26:51
Hello, there. Yes. Hello, everyone.
Unknown Speaker 26:53
Hello, Sarah. Hello, Sarah.
Unknown Speaker 26:55
Hi. Thank you very much for letting me come up. I'm actually this is very interesting conversation for me, because I'm a junior designer. And for the past 14 years, I've had my own brands, and I'm creating high end, limited edition ethical sustainable jewelry. But I've always been very of launching my online shop my ecommerce website, because I wasn't sure if it's gonna sell, you know, because of the price range. So my question is, what is the average price range for your fine jewelry collections? And what's the best selling range? For your fine jewelry? What's the what would people be more comfortable to pay for fine jewelry to buy online?
Unknown Speaker 27:45
Isaac, this one's right in your wheelhouse? I believe so. shorthand for it.
Unknown Speaker 27:49
Okay, Larry. Thank you. Thank you for your question, Sarah. While we do have luxury doesn't have to be expensive anymore. We do have an opportunity for anyone to come in to our website and buy themselves as Swarovski or buy their loved ones as Swarovski bracelet or a necklace for $95. For $150. We also have price points that go up as high as 20 and $25,000. If it's a Roberta coin, Diamond necklaces, when you have to find your jewelry that we currently have, we do find that we do sell all different price points. In different ranges, I do have to say that the ranges that any any jewelry or watch any category, the range is under 10,000. Or more to say closer to 5000 does turn over a lot quicker than anything that much higher end. And that probably has to do with the world we currently live in as well. You know, people don't go out as much as they did yet. We're sort of the single light at the end of the tunnel. But we did we do sell a higher end items as much as the entry price points as well. And we do have customers for for really a range from anywhere from the start to anywhere and end up being where
Unknown Speaker 29:22
Sarah our customers are not shy to spend running the gamut from really, you know, less expensive things to the high price things. We you know, we have we have a great reputation. So they're not concerned about authenticity and what they're getting. So, pricing, definitely, or at least I don't see price being a barrier. at any price point. As long as there's value in what we're selling.
Unknown Speaker 29:53
Maybe we can't ask very much.
Unknown Speaker 29:54
Thank you. Sorry. They're just
Unknown Speaker 29:56
sorry. Thank you. So I was just gonna say what What's the highest price item that you've sold? If you can share us jewelry?
Unknown Speaker 30:09
Just taking a guess I would have to look. But I would say we've had had pieces that sold between 18 and $25,000. Over the past year.
Unknown Speaker 30:18
Absolutely. That's great.
Unknown Speaker 30:20
Yeah, for a single first single piece. I know we have a lot of repeat customers. Because our inventory changes so often. You know, our customers know and without us, even prompting them, they're on the site, three days a week, four days a week, we're gonna go, Hey, I just noticed your put up this, hey, just notice to put up that. So they really love it. And they get excited. And they know that they have to jump on thing because once they're gone, they're gone.
Unknown Speaker 30:53
Man ask one more question.
Unknown Speaker 30:55
Absolutely.
Unknown Speaker 30:56
Have you seen that trend change during the pandemic? I mean, have you seen people spend more be willing to spend more on jewelry online on fine jewelry online or less.
Unknown Speaker 31:08
But I would say more are once the first couple of weeks of the, in the United States at least once that once the first couple of weeks passed. I mean, of course it's it's it's been horrible, anyone who was effective affected by it, you know, our hearts go out to them. But in general, people wanted a smile on their face. And if they weren't affected, and once they were home, sitting on the couch, or you know, conducting their business, people did definitely spend because everybody loves to see that FedEx driver walking up their walkway. So I think people wanted a smile on their face. And buying something, whether it was a handbag, or a high end piece of jewelry, or a watch really made them happy when they were locked up inside, even though they knew they couldn't wear it immediately. So I think that will happen eventually.
Unknown Speaker 32:04
And Sarah, allow me to add to that as well, that price point does matter as well. So I mean, when you have an assortment of jewelry, either return 1000 or 1500 to 30 $500 you see certainly a lot more turnover, you see a lot, a lot more value in Dallas price points as you see an 18,000 $20,000 ones, especially when obviously when there's so much uncertainty in the world. In today's days, you know, people are if they have the fault, they have the economical they have the funds they have the money doesn't mean they're going to go out and and just spend it all so they are very careful on what it is out there. That being said, jewelry has been the fastest growing category. We have seen in the last 12 months we I have never seen anything like this. We added I think we added or close to 15 jewelry designers do the different brands, or over this over this 12 months, I could be on there on the moreover conservative. And those brands you're going to see either once again is there it's swarowski pieces that we sell in the neighborhood of two to 3000 units a month. Or it's only unique to find jewelry pieces that were made out of their icon catalogs, that you will see pieces that retail for 20 3040 $50,000. You certainly you certainly have different price points. But as closer you get to the obviously away from those higher numbers, you're going to see a lot more appetite there as well for for people just to have a either a spontaneous purchase or just the purchase that they would like to make their loved ones of themselves. So put the smile on their face, as Larry indicated.
Unknown Speaker 34:04
We so much you both are quite right. Yes.
Unknown Speaker 34:07
No, no, no, wait. It's really amazing. We have customers that have sometimes I still get some, you know, old time customers who I've known for many years and still, you know, call and ask to speak with me. And they just, every time they just buy things a customer called yesterday says remember I bought this ring from my wife a few months a few months ago for her birthday. Well, I had to give it to her before her birthday. So now I need something else for her birthday. And they just call us really religiously. And they're just so happy with with what they get from us. And you know, again, the value of the service. And it's all about community and how you deal both with your, with your suppliers, with the brands and with your customers. And we like to say we are in the relationship business on both ends of the spectrum.
Unknown Speaker 34:57
Great.
Unknown Speaker 34:57
That's That's excellent. I'm actually very Glad to hear that I've myself had a lot of engagement with coders, because I do a lot of commissions. And it seems like a lot of people decided to propose during the pandemic, which is very interesting. Thank you very much for giving me
Unknown Speaker 35:15
positive side effects of the pandemic.
Unknown Speaker 35:19
Thank you for giving.
Unknown Speaker 35:19
Thanks for a great question. We have Jeff on the on the stage right now. How are you today, Jeff?
Unknown Speaker 35:27
outstanding. How are you guys doing?
Unknown Speaker 35:29
Great.
Unknown Speaker 35:30
Great. Hi, Jeff. Hey.
Unknown Speaker 35:33
So first of all, I
Unknown Speaker 35:34
think you guys are about to close the sale on a Giorgio Armani men's brown shirt by sunglasses because the price
Unknown Speaker 35:46
you can pay just make sure. Make sure the attribution goes to me. Okay, it comes back to.
Unknown Speaker 35:54
So Larry, could you unpack when you say you're doing something with a brand partner?
Unknown Speaker 35:59
I my understanding is you're selling things at
Unknown Speaker 36:03
a discount, why would a brand want to come up and be associated with you directly?
Unknown Speaker 36:08
Great question. We've gotten endorsements from many brands. And, and this is the first time this has ever happened with someone in quote unquote, the secondary market. But because of our unique concept, which is again selling past season merchandise, we do not compete with the brands, authorized retailers, or what the brands are selling in their own boutiques. Today, it's only from past season, which are so from the brand's perspective, they would rather see the items being sold in this controlled environment for what they are, which is shopworn something that has been on display at a store from a past season. Let's say you called me up and said, Hey, Larry, I'm looking for this is omega that so that they just released, I will tell you, you have to go to your authorized dealer to get we don't compete will not compete with dealers in the brands. So again, it's all about the relationships and walking the walk, talking the talk and doing things the right way. And we also were able to buy selling these past season items, add add exceptional value, we are able to introduce the product to customers that may have never known about the brand well, or didn't have the funds to buy two years ago. So we are almost a gateway to them as well as an ambassador for the brand. And I love if that makes all the difference.
Unknown Speaker 37:49
And Jeff, allow me to add to that to Larry's point as well. The chaplain is helping both brands and consumers resolve the challenge of gray market goods. The gray market is a brand killer, not only because the low prices have great good hurt the luxury perceptions, but also because customers can never be certain about what they are buying. When the brands look at shop when they see shop world being part of a natural evolution of every luxury brand that exists out there. Every luxury brand will manufacture and introduce the new product, every luxury brand will ultimately try to sell 100% of their products through their authorized retailers anywhere in the world or through their own boutiques. But no one can be ready and protect, you know Zika in South America uncertainty in in the world of sanctions in Russia or bombing in turkeys, or unfortunate to what works, what we're going through right now the COVID the global pandemic. But it's important that there's finally a brand has a partner has a platform has a partner that they can trust that they will sell their product for what they truly are shopworn and these goods will never see the light of day in any gray market or on a controlled environment. And that's what sharpen gives, in addition to everything above of transparency, of showing to every total brand where the product is being sold and what it's being sold.
Unknown Speaker 39:45
In addition to what Isaac just said that I think Sarah referred to it. Sustainability is becoming a huge topic over the past few years and we really overall All categories. We help the brands solve the sustainability issue because many brands in the past have taken goods back, burned them, demolish them. And why do that there's there's there's a home for everything, even if that product was was unloved when it first came out, someone's going to love it today.
Unknown Speaker 40:21
That's really interesting to have a follow up questions curious. Sure. What are your thoughts on social commerce? Because I don't ask them right now. I don't think your social commerce but it sounds like if you're doing an event with the with a brand partner, you beginning to evolve into that. Live streaming. I don't know if there's a place for you on on social audio or not. But I'm just curious, what are you thinking on social commerce?
Unknown Speaker 40:50
We think that it's the way way the future and we are definitely interested in getting much more involved in it. The inside the vault is obviously our first first entree. And if you have any suggestions, we're certainly open to hear them. No,
Unknown Speaker 41:10
I mean, I have come to space for an awful long time. And I would say it snuck up on me, but we just did a piece yesterday. And the numbers are unbelievable. I mean, I just their binder, I dropped me how big this this space. And when I say social commerce actually buying, you know, through network platform or something. So it's, it's stunning to me how big the spaces, and then your, your position with the brand is fascinating, because I've never, I've never seen anything like that. It's really kind of interesting. And I guess I'm your case, point that because I have exactly zero Giorgio Armani video. And I might have a pair of sunglasses. By the end of today. So not
Unknown Speaker 41:50
many, if you will, we're positive.
Unknown Speaker 41:55
That's how
Unknown Speaker 41:57
retail always be closing.
Unknown Speaker 41:59
Very interesting
Unknown Speaker 42:00
stuff. Very interesting.
Unknown Speaker 42:01
So I can, I can probably speak to the live streaming site myself a little bit, because we actually have a company that does that. But we we focus on one to one, private, live streams, sales. There's two formats to it, you know, there's a one to many and the one to one, I think what you're testing with the vault, it might sound like it's a one to many you have, right. So both of these are going to be a part of the future. They're different, they require different type of work to get set up. But what we do with our company visual commerce is we basically enable appointment based or real time, you know, on demand, one to one channels, so that people can actually see and ask all the questions they will have from an expert, and make a purchase all in the video. So that's, that's the next level, I think a lot of people will start from, you know, maybe, or maybe try some of the one too many. But then, you know, for higher price items, better customers, you want to give them a different service.
Unknown Speaker 43:18
That's that's fabulous. They're very exciting idea. And I think we'd love to give that a shot. Can you limit like, you know, make it available during certain hours? Yeah, something like that work?
Unknown Speaker 43:30
Yes, yes.
Unknown Speaker 43:33
Yeah. Oh, absolutely. Very, very interesting.
Unknown Speaker 43:38
Yeah, I think that's the and that's really key. And I think you guys are doing really good is that, you know, you, you have to always be open to experimenting. And the key is, how expensive is the experiment? Right? How much resources and and that's what I think retail, you know, companies that I talk to, I like I make a point of it to say, make it as easy and inexpensive as possible for retailers and e commerce brands or to test your product without making a major investment, prove it to them that it works and then start you know, generating your long term revenue.
Unknown Speaker 44:20
Absolutely. 100% walk before you run.
Unknown Speaker 44:23
Yeah, yeah. So So I know that Sarah is actually in the UK and she is an up and coming brand. What do you how do you define brand? Does it have to be like a global brand before you start talking to them or
Unknown Speaker 44:42
are you open to other more newcomer brands?
Unknown Speaker 44:49
So, let me let me clarify a few points. A brand two was is a logo a brand that already has a retail establishment doesn't have to be necessarily in North America, where it most of our brands do. But we do have brands that are not in the US or not in Canada, but they are, they want to come to the United States. And they are very popular, very, a lot more well known certainly in other parts of the world, we do work with those brands as well. And we do purchase their past season product. And the sortland does need to certainly be very, has to go in with other luxury brands that we currently have. Not in terms of the price price points, but certainly a prop apart from their commercial and of it. So as long as the brand is there, and it's already retailing and does has its own retail network, it doesn't have to be in the US. But it does have to have an established existence elsewhere, in order for us to be able to really provide the right value to our consumers, as well as to the brand partner that are looking to engage with us.
Unknown Speaker 46:22
Okay. Yeah, I think that's probably one of the things that you know, and I think when as the company grows, I'm sure that that definition might evolve, to be, you know, even bring in more. But there's, I mean, there are definitely a lot of really interesting high end individual designers around the world specially in the jewelry space that have, that they're starting to build their own brand online in a new way. That is not even like, in in stores. So I mean, that's that's the question, right? Where is where is the future of the brand, right? Or do they have to have a physical location to be considered a major brand in five years,
Unknown Speaker 47:12
or,
Unknown Speaker 47:13
right now we're seeing that brands are being created completely online with massive followings.
Unknown Speaker 47:20
I am in agreement 100%, I just want to clarify that when I met, when I said retail, I automatically means ETL as well. So as long as the presence of a brand does not necessarily need to be in the brick and mortar shop. It does not. But it needs to be out there in existence, that the brand because at the end of the day, the promise of shop world, to our consumer is that we are bringing them the opportunity. We're the only place today, where the first of the market and we're the leaders in the market in the luxury space for best season products are used, guaranteed to be authentic at incredible savings. So all those points have to be answered in order for us to become a valuable brand partner to our Brand Partners, as well as deliver continued delivering the value to our consumers.
Unknown Speaker 48:23
Fantastic. Well, thank you so much. I think we are getting close to the end. I really enjoyed this conversation and want to thank you for your time this is very interesting concept would love to stay in touch, we will cookie no follow up. And you know all the best in your growth.
Unknown Speaker 48:46
There is thank you for having us in thank you for. And thank thanks to everyone that was listening as well, for a for allowing us to giving us the opportunity to share with you about our company, and welcome everyone to come to sharper and calm and look at things that we have and hope you'll find your favorite piece of favorite brand or favorite item. And we're certainly there for you. If you have any questions on a at any time. Thank you for having us.
Unknown Speaker 49:20
Thank you, everyone. Thank you, Larry and Isaac, I learned a lot. Thank you.
Unknown Speaker 49:24
Thank you, sir.
Unknown Speaker 49:25
I don't know I shame on me I should have prepared in advance. But to anyone that listens to obviously the people who are on now as well as listens. I'd like to offer a you know, a discount coupon if anybody goes and wants to shop. Unfortunately, I'm going to have to get that to you after the fact. So I don't know how or if you'll be able to apply that to the podcast in any way.
Unknown Speaker 49:49
Sure. Send it to me and I will share it with the people that I see in the room right now. Exclusive is great. Thank
Unknown Speaker 49:59
you I will work on my tone of sunglasses.
Unknown Speaker 50:02
Absolutely. Absolutely.
Unknown Speaker 50:05
I would say this is specifically for you, Jeff, if you want
Unknown Speaker 50:08
to get you can give us a call as for me, and I'll take care of you.
Unknown Speaker 50:14
You guys are awesome. Really
Unknown Speaker 50:16
awesome. Thank you everyone. Have a wonderful day, everyone.
Unknown Speaker 50:19
You too, everyone. Thank you