Navigating the art market can be challenging and traditional. This reality isn't apparent during university studies. However, once you begin working professionally, it becomes clear that it's dominated by a tight-knit group of successful business collectors who guard their circle closely. They wield significant influence over the market, including the hiring for galleries and auctions, where family connections often outweigh academic merits.
Choosing to launch your own venture exposes you to the same scrutiny of your familial networks. Lacking in this area? Expect to face exclusion. Engaging with Web3 projects has proven to be a game-changer, offering a pathway to break into this exclusive circle and excel in the industry. Yet, success isn't solely attributed to Web3; it also requires professional development and the ability to identify and exploit new opportunities within this traditionally conservative market. My company has become a leader in its segment.
- Staying ten steps ahead. In 2017, as the art industry began exploring blockchain technology, I swiftly embraced the Web3 community and integrated cutting-edge innovations into my practice. This strategic move garnered significant media attention and piqued the interest of industry professionals in my business. However, this surge in interest was not permanent. It sparked attempts at imitation, yet the complexity of our projects rendered them inimitable. Additionally, there were instances where industry players collaborated with my rivals. These competitors, however, only showed fleeting interest in this niche, and the ventures initiated with them were eventually discontinued post-hype. In contrast, my business units have sustained their operations.
- Working in niches where there is a shortage. In our situation, we specialize in the field of art expertise, encompassing areas such as painting, graphics, photography, sculpture, and decorative arts. Offering services in authenticating these works requires extensive knowledge, specialized skills, advanced equipment, and specific authorization. The sector is tightly controlled, and entry is only feasible for those who have achieved a high level of professionalism and are willing to invest in costly equipment. This exclusivity makes the field highly specialized, with our services being in great demand. This year, our focus on this niche has resulted in a staggering 2000 percent increase in demand for our projects, a monumental growth fueled by prior investments. A critical factor to our success is the scarcity of the services we offer; there are very few companies that operate in this space. In Russia, for instance, there are only three, with two located in Moscow and one in Saint Petersburg. Clearly, venturing into the art expertise sphere has proven to be a fruitful endeavor.
- Building your own community. It's evident that during the initial phase of starting your business, attempting to engage the audience of established competitors might have proven to be ineffective. When confronted with new entrants, these established entities often become insular, preferring to address their challenges internally and keeping new competitors at bay. To penetrate this sealed environment, it became crucial to cultivate our own target audience who required our specialized services and products. Given the scarcity within the markets we ventured into, our entry with superior, ready-to-use products and unique services made this feasible. Consequently, initiating advertising campaigns to attract an audience proved to be a successful strategy.
- Proper focus in advertising campaigns. Effective advertising campaigns should be finely tuned to reach the audience most likely to become your customers, with conversion rates being the primary measure of success. It's wise to allocate your advertising efforts and budget towards the right platforms, even if you have the resources for a wider spread. Focus on participating in events that promise substantial returns or enhance your personal brand significantly. Avoid overextending by steering clear of irrelevant discussions and gatherings. Engage in panel discussions exclusively with experts in your field, rather than with competitors who are merely mimicking your strategies, those who haven't progressed to launching a Minimum Viable Product (MVP), or those who have attempted to undermine your business in the past. Your business has a product and services that are sought after, as well as a dedicated community. You possess the autonomy to decide the best approach for promoting your brand and establishing your stance towards other market players, whether they seek collaboration or pose competition. The key lies in accurately targeting and positioning your business in the market.
- Maintaining independence. This is facilitated by additional sources of income. In my case, it's a digital business that I run alongside my art business. I always have alternative sources of income, allowing me to choose with whom and under what conditions my company will work, especially in the market for scarce services in art authentication. As soon as I entered this market, I faced some protests from high-net-worth clients, predominantly those listed in Forbes. They did not like my company's pricing. They collectively decided how to influence the high rates, looking for ways to find alternative contractors who would comply with their demands and offer services at much lower rates than my company. The scheme failed, and now I operate under the terms that I have set myself, while explaining the pricing in accessible language. Primarily, I convey information about the scarcity in my market and the high level of demand. And I do not deny that I am interested in commercial success and earning, rather than in dumping prices to retain clients. The period of adaptation to my conditions has ended, and my company has moved to a stage of sustainable development.
- Proficient work on personal branding. As previously discussed, navigating the art market's complexities and its conservative nature involves dealing with trends, including competitors' FUD strategies (fear, uncertainty, doubt). Misconceptions about your work can easily circulate through gossip, fueled by these FUD. To counteract this, it's crucial to strategically manage your personal brand and ensure your public actions do not alienate other participants in the market due to your media visibility. In my experience, rather than maintaining a constant stream of updates across social platforms, I opted to scale back, choosing to share only significant, completed project outcomes. This approach led to a noticeable increase in engagement. By limiting the frequency of my updates, I've made my content more appealing to premier media outlets and conference organizers, who now view my contributions as rare and exclusive insights, rather than reiterations of what's already available online. This strategy has attracted attention from top-tier media and event planners looking for unique, insider perspectives.
- Never comment on someone else's business. During the peak season, I handle between 50 and 100 art authentication inquiries daily. Often, individuals inquire about my opinions on various galleries, auction houses, or art fairs. My replies remain impartial and devoid of recommendations for clients who haven't formalized a contract with me. I make it a point not to engage in spreading rumors about other entities in the art market, which shields me from unwanted disputes. My primary concentration is on nurturing and expanding my own business.
- The ability to refuse. Details regarding our company and our employees are publicly accessible, including diplomas, certificates, licenses, and other professional documents. This information and documentation are open for client review. However, during negotiations, we sometimes encounter clients who engage in intense bargaining. They may question the high prices I set, especially in the newly established art authentication market. In these discussions, it's not uncommon for clients to claim personal connections with all my B2B clients, including top insurance or transport companies, and to make veiled threats about the repercussions of not conforming to their demands. This could include threats about what might happen if I refuse to authenticate an artwork that could be a forgery, or if I don't agree to their terms. Such threats have become a regular occurrence. It's crucial to firmly decline these pressures from the outset and assert that I operate in specialized markets with limited supply, where I establish my own business practices that I believe are best suited for the current economic climate.
- Partnership with the major players in adjacent businesses. Forming these collaborations will bolster your product lineup and elevate the prestige of your brand. Influential entities in related sectors, including Web3, development circles, and top-tier insurance firms, will significantly sway interest from affluent clients, reducing the hurdles you encounter. Instead, your position as a frontrunner will make partnerships with you more sought after, particularly in traditional industries where alliances with well-known corporations are highly prized.
- Venture investing. Investing personal resources and finances in the growth of small businesses is essential, particularly with partners who can enhance your profitability. This includes vendors utilizing your solutions, loyal customers, partners bringing in referred clients, and influencers whose web projects you support. Venture investment amplifies your market influence and fosters superior outcomes, even with an initially constrained budget. It's more advantageous to allocate this budget towards nurturing partnerships rather than on ineffective advertising efforts that fail to yield conversions.
