Ed. 30 - Sotheby's Digital Art Auction

Dear Digital Transformation Enthusiasts,

Welcome to the 30th edition of Unveil: Digital Transformation. As promised, today let's try to understand hoe Sotheby has transformed Art auction

Introduction: A Symphony of Tradition and Innovation

Sotheby's, a titan in art auctions since 1744, has gracefully adapted to the digital age. Once synonymous with velvet ropes and gilded rooms, Sotheby's now blends tradition with technology, ushering in a new era of art auctions.

Traditional Elegance:

The Essence of Sotheby's Tradition ran deep as Sotheby's orchestrated auctions, steeped in exclusivity. Personal invitations, charismatic auctioneers, and in-person bidding rituals defined this age-old spectacle. But winds of change were stirring.

The Technological Landscape:

Crafting a New Canvas With the rise of e-commerce, the art world witnessed a paradigm shift. Paddle8, Artsy, and Auctionata democratized art, making it accessible to the masses. Online art auctions surged, constituting 6% of all sales, a 32% YoY increase.

Sotheby's Technological Overture: A Journey Unveiled

1. MySotheby’s (2004): A digital gallery allowing buyers to preview paintings, eliminating the need for in-person visits. Wishlists and real-time updates transformed the pre-auction experience.
2. BidNOW (2005): Real-time bidding through streaming connected global buyers to live auctions, shattering geographical constraints.
3. eBay Partnership (2015): Sotheby's embraced a fully digital platform in collaboration with eBay. Virtual auctions, sans production and catalog costs, marked a revolutionary stride.
4. Mobile App: A cutting-edge mobile application offering myriad features, from absentee bids to real-time results, bringing the entire auction experience to the palm of one's hand.

Future Horizons:

Beyond the Auction Room As Sotheby's charts its course into the future, two innovations beckon:

1. Virtual Reality Headsets: Offering online bidders an immersive auction experience, transcending the limitations of a digital interface.
2. Artificial Intelligence Auctioneer (Sotheby's Watson): Revolutionizing the bidding experience, providing insights, and enhancing the strategic dynamics of auctions.

Digital Triumph:

Sotheby's and eBay The strategic alliance with eBay in 2015 marked a turning point. Online-only auctions burgeoned, attracting new buyers and generating substantial revenue. Sotheby's, once cautious about digital strides, reaped the rewards of this visionary partnership.

Digital Transformation Metrics: A Resounding Success

• Online sales exceeded $90 million in the first half of 2016, boasting a 27% YoY growth.
• A 54% increase in lots sold online, constituting 18% of total lots globally.
• London, Paris, and New York witnessed sales with over 25% of lots sold to online buyers.

Conclusion:

Art's Digital Tapestry Unfurls In the ever-evolving landscape of art auctions, Sotheby's stands as a beacon of transformation. As luxury shoppers embrace online channels, Sotheby's continues to redefine the art market's contours. The journey from red velvet ropes to virtual reality and artificial intelligence is a testament to Sotheby's commitment to innovation. The canvas of the future awaits, painted with the strokes of digital brilliance. ?????

Stay connected for forthcoming editions where we try to understand more of these industry veterans who have successfully adapted digital transformation.

To successful transformations!