How Art Auction Houses Are Exploring New Digital Avenues
We explore how auction houses have catalysed investments in contemporary and classic art, fine jewellery and luxury watches through new digital avenues
The pandemic has accelerated digital growth across all sectors of business. Investment in art also indicates a steady and impressive growth rate over the years. A 2019 Art and Finance report by Deloitte ArtTactic revealed a CAGR of between two per cent and nine per cent across various collecting categories, with art being considered as an asset class stronger than gold, given its value preservation.
According to this report, 88 per cent of contemporary works and 80 per cent of impressionist and modern works held for over ten years had a resale price higher than their purchase price. One must not ignore the less volatile compound annual returns supporting the trend for including art in wealth management services as expressed by 86 per cent of wealth managers surveyed.
Eduardo Terrazas. 14.3 (from the series Everyday Museum). 1987.
Even though auction houses reported an overall dip in sales during the first two quarters of the year, statistics of these investment trends have supported the action witnessed in virtual auction rooms. When Christie’s livestreamed its ONE global online auction in July offering impressionist and modern, post-war and contemporary art and design, more than 80,000 people participated in the event, with 60,000 accessing the auction through social media in Asia.
Not only did this reveal the true global appetite in the arts, but it also smashed presumptions of consumer hesitance to embrace the digital transformation. “We’ve had 30 per cent new clients join us digitally and our highest spenders have been our loyal and traditional buyers who have embraced the digital transformation,” says Matthew Rubinger, Global Head of Corporate and Digital Marketing at Christie’s.
Mohamed Melehi. Untitled. 1982.
“The future of our business is a hybrid one and the success of our first online sale was due to the global reach, engagement and digital tools such as virtual tours, digital catalogues and especially augmented reality which allowed a potential buyer to look at the art on their wall.”
As Rubinger explains, such digital tools enabled the auction house to recreate their galleries to clients in any part of the world, without requiring them to physically take a flight and walk into a location from across the world. In the July sale by Christie’s, their YouTube channel recorded over 100,000 viewers, reflecting the interest of the global art community.
Hayv Kahraman. The Interpreter. 2016.
As for bidders and buyers, they had a chance to experience the gallerists showcase their lots from Hong Kong, Paris, London and New York, setting auction records for artists like Brice Marden, Wayne Thiebaud and George Condo.
Auction house Sotheby’s also reported a contrasting incline for 48 online sales of watches held between January and July this year, reeling in $28m compared to $9m for 14 sales in the whole of 2019. Similar to the digital tools embraced by leading auction houses, Sotheby’s too changed its digital offering to include more video content, 360-degree spinning images and chat functions connecting clients with specialists and attracting digital-savvy buyers from across the globe.
A circular-cut multi-colored multi-gem swirl edged with approximately 38 marquise-cut diamonds weighing approximately 1.75-2.00 carats, mounted in 18k white gold.
For buyers and collectors interested in purchasing, this certainly is the best time to discover the art world and add to their collections. Rubinger advises to begin with something they love and offers the following few tips for those considering buying in an online auction: First, register early for all the updates and leverage the digital tools available such as catalogues, virtual tours and augmented reality to get a real look and feel of it.
Second, do your research and ensure you know what you are buying, to make a responsible purchase and investment.
Third, study the art, understand the market, the artist and the auction house and get an opinion from an independent art advisor. Speaking about online and offline security, Rubinger says, “We ensure the same level of security, confidentiality and trust that we apply offline on our online platforms and we have industry-leading measures to ensure that not only data is safe, but that we also lead the way forward in digital safety and security.”
Image Courtesy of Christie’s
From the Autumn 2020 Issue of Harper’s Bazaar Arabia
Curated by Caroline Louca-Kirkland of Christie’s