Flying Under the Radar: The Online Global Arts Market
While many businesses are upping their digital and eCommerce offerings in light of COVID-19 restrictions, it’s interesting to note that digitization of the art market has been well under way for a number of years now. This includes both how art is appreciated and consumed around the world. As the pandemic hit in early March, almost immediately The Met began promoting its virtual and online offerings and Art Basel Hong Kong opened online viewing and buying rooms in lieu of their annual show. Many other museums, galleries, and art fairs around the world followed suit. Like many other industry sectors that have seen a rise in online sales, the arts market has in essence exploded.
Perhaps more than any other mainstream retail sector, the arts auction and sales segment has seen accelerated eCommerce activity that has outpaced the rest of the art market in the past 5-7 years. While this segment saw its online sales peak in 2014-15 before leveling off more recently, it still outpaces others in the online arts and collectibles segment (Online Art Trade Report/UBS Global Art Market Report), reaching $4.8 billion in 2019. This number is expected to increase significantly in 2020 as the pandemic has forced widespread gallery closures. In terms of big-ticket items, the renowned three auction houses Sotheby’s, Christie’s and Heritage Auctions alone accounted for $1 billion of total sales in 2019. All of this is significant when considering that the global art market is valued at $64 billion.
Three of the biggest factors among consumers to purchase art online are accessibility, quality of work and cost transparency, all of which build trust among buyers of high and low-priced items. According to Hiscox and ArtTactic’s Online Trade Report, the top online arts marketplaces (by volume and sales) include:
1. Christie’s LIVE
2. Artsy
3. Artnet
4. Sotheby’s BIDnow
5. Auctionata
6. Saatchi Art
7. Artspace
8. eBay Art
As a number of art executives and journalists have indicated, moments of crisis have led the way towards innovation, transparency and opportunity. This will only increase in the coming months, and it will be interesting to see how the industry will continue to change and adapt.