An annual report focusing on economic trends in the art and antiques world (published by the European Fine Art Fair) showed a 7% drop in money spent on art globally (in 2014, global art sales were 68 billion USD in total).
At the same time, Internet art sales actually rose. According to the report, the online sector grew 7% in the past year, accounting for 7% of the value of all global art and antiques sales.
Auction houses are feeling the pressure
Recent auction house results are already showing the financial impact. Sotheby’s spring art auction saw the house’s worst performance since 2009. Sales dropped 61% from the previous year. Christie’s spring auction sales were only slightly more than 10% of its sales a year earlier.
The most expensive items are still mentioned in the news and they draw collectors to bid on other items. Such sales of the most expensive pieces now account for roughly 60% of the value of fine art auction sales, but just 0.1% of overall transactions.
Internet: the price is no longer a secret
Dealers accounted for roughly 50% of total art sales in 2015. They are feeling the shift as well. They use the Internet to identify and address potential buyers, search for clients and inform themselves about collectors.
Auction results are instantly available online. It is becoming common for collectors to check the price of a work on their smartphone during face-to-face negotiations with a dealer. So for dealers, sales can be lost or at least turn out to be less lucrative, according to the strategy-business.com website.
In the next article we will take a look at the new players who are appearing on the scene.
-jk-