Adjusting to a More Inclusive Art Market and Changing Consumer Base

The art market, once a bastion of exclusivity and traditionalism, is undergoing a transformative shift. This evolution is not just about art itself but who buys it, sells it, and creates it. The advent of online sales and social media platforms has catalysed a more inclusive and diverse marketplace, broadening access to art and enabling a new generation of buyers and artists to enter the scene.

Venice Biennale leading the way

The Venice Biennale, though not a commercial event officially, attracts galleries and collectors, propelling highlighted artists into the art market's spotlight. In the U.S. pavilion for this year's edition, Jeffrey Gibson has been appointed as the first Indigenous solo presenter, representing a broader institutional focus on Indigenous art. Jaune Quick-to-See Smith's curation at the National Gallery of Art and retrospective at the Whitney, along with similar showcases at institutions like the Hessel Museum and the Hammer Museum, amplify a new trend to increase Indigenous artists' visibility. Commercially, Phillips auction house's "New Terrains" exhibition featuring Kent Monkman and Cara Romero suggests an increasing presence in upcoming auctions.

The Current Key Drivers of Art Sales

Digital platforms have emerged as powerful drivers of art sales, breaking down geographical and social barriers. Social media, particularly Instagram and TikTok, has become a vital tool for artists to build their brand and connect directly with audiences. This democratization has attracted a younger, more diverse group of consumers, significantly influencing industry growth. As influencers and younger collectors enter the market, their preferences are starting to shape the types of art that gain popularity.

Future Trends in Art Sales:

The future of art sales is likely to be heavily influenced by technological advancements like augmented and virtual reality, blockchain technology (despite the catastrophic field of NFTs). These technologies offer new ways for artists to create and sell their work and for collectors to interact with and own art. Moreover, as global social and economic trends continue to evolve, they will invariably impact consumer preferences and the types of art that resonate with audiences.

Transition to a Younger Client Base and Collaboration with Emerging Artists:

Art institutions are increasingly tailoring their strategies to appeal to a younger demographic.?The contemporary art market is transforming as 83% of younger collectors now view art as an investment, up from 50% last year, according to Deloitte's Art and Finance report. This generation emphasizes portfolio diversification (61%) and considers art a hedge against economic turbulence (over 50%), showcasing financial acumen. Additionally, 41% engage in social impact investment, integrating ethics into decisions. This blend of financial savvy, ethical commitment, and a discerning eye for emerging artists defines the vanguard of the current art market.?This shift necessitates new roles and skill sets, particularly in digital marketing, online sales, and customer engagement. There's a growing emphasis on direct engagement and collaboration with emerging artists, often facilitated through social media and online platforms. Art institutions are also fostering more inclusive environments that resonate with a diverse client base, highlighting artists from various backgrounds and styles.?

The Future of Art Fairs, Private Sales, and Physical Auctions:

While online sales are surging, traditional art fairs, private sales, and physical auctions retain their significance. However, the future demands a more integrated approach, combining the physical presence of traditional galleries and auctions with the accessibility and reach of digital platforms. This hybrid model offers a more immersive and experiential way for customers to interact with art, catering to a market that values both the tangible and virtual experiences. Galleries and auction houses must innovate to provide these experiential offerings, blending the physical allure of art with the convenience and reach of digital platforms.

The COVID-19 pandemic prompted a swift and significant shift in the century-old tradition of in-person bidding, compelling auction houses like Sotheby's and Christie's to quickly adapt their live business models during the lockdown era. Prior to the pandemic, online sales accounted for 4-5% for both Sotheby's and Christie's. Facing pandemic challenges, the art market embraced innovation, exemplified by Sotheby's "Auction of the Future," a marathon lasting four and a half hours, achieving a remarkable 93% lot sell-through and a total of $363.2 million. Similarly, Christie's "ONE" multicity auction achieved a 94% sell-through of 79 lots, generating a turnover of $421 million. The success of these hybrid auctions spurred the integration of high-quality media production in the luxury sector, still developing in Sotheby's recent appointment of Kristina O'Neill, former editor-in-chief of Wall Street Journal Magazine, as Head of Sotheby's Media.

The Battle for the World’s Second Art Capital:

New York remains the undisputed art capital of the world, but the race for the second spot is intensely competitive. London, Paris, and Tokyo each present compelling cases. London boasts a rich artistic heritage and a vibrant contemporary scene. Paris, with its deep artistic roots and iconic institutions, continues to be a major player.?

Tokyo is emerging as the next Asian art market hub, riding on Japan's current financial boom. Just last week, the Nikkei 225 index hit a 34-year high, surpassing 35,000 for the first time since February 1990, fueled by the release of a new list of public companies by the Tokyo Stock Exchange. Additionally, the Japanese government is supporting the art market with initiatives like Tokyo Gendai, the nation's first art fair with bonded status, providing overseas exhibitors with customs and sales tax concessions, boosting the cultural sector.

In conclusion, the art market is at a pivotal point, facing both challenges and opportunities. As we embrace a more inclusive and diverse market, we open doors to new ideas, perspectives, and possibilities. The industry must continue to adapt, leveraging technology and innovation to meet the changing demands of a new generation of art lovers. In doing so, we ensure that the art market remains vibrant, dynamic, and accessible to all.

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