As the art market undergoes a significant shift, galleries must adapt their strategies to meet the evolving needs of collectors. Online sales are emerging as a key aspect, with transparency and trust becoming top priorities.
A Shift in Collector Behavior: What Galleries Need to Know
The Evolving Art Market and Its Impact on Galleries
The art market is undergoing a significant shift, driven by changing collector behavior. According to the latest report from Artsy, collectors are becoming increasingly price-conscious, prioritizing transparency and trust over speculation and hype. This shift has far-reaching implications for galleries, which must adapt their strategies to meet the evolving needs of collectors.
The Rise of Online Sales
Online sales are emerging as a central aspect of the art market, with 43 percent of galleries planning to focus more on online sales. This trend is driven in part by economic pressures but also reflects where collectors are looking for discovery and purchases. Among collectors under 37, online platforms already play a key role in the buying process.
Online sales have experienced significant growth in recent years, driven by increasing internet penetration and the convenience offered by e-commerce platforms.
According to a report by Statista, global online sales reached $4.9 trillion in 2020, accounting for approximately 22% of total retail sales.
The shift towards online shopping is expected to continue, with forecasts suggesting that e-commerce will account for up to 25% of all retail sales by 2025.
The Importance of Transparency
Transparency remains a major sticking point for collectors, with 69 percent citing hesitation to buy art due to a lack of transparency around pricing and provenance. Most galleries recognize this issue but have been slow to address it. Artsy‘s data shows that listings with visible prices are about six times more likely to sell.
Transparency refers to the quality of being open and honest in one's actions, decisions, and communication.
It involves providing clear and accurate information about processes, policies, and procedures.
In business, transparency is essential for building trust with stakeholders, including customers, employees, and investors.
According to a survey by Edelman, 64% of consumers say they are more likely to do business with a company that is transparent.
Transparency also reduces the risk of corruption and promotes accountability.
Emerging Artists as a Shared Priority
Collectors and galleries alike prioritize emerging artists, drawn by accessible pricing and the excitement of discovering new talent. This aligns with gallery priorities, which see emerging artists as crucial for sales and building long-term relationships with collectors.
Emerging artists are individuals who have recently begun to gain recognition for their creative work, often in the fields of music, visual arts, or literature.
According to a survey by the Arts Council England, 71% of emerging artists struggle to make a living from their art.
Despite these challenges, many emerging artists have gained international recognition and accolades.
For example, singer-songwriter Billie Eilish rose to fame at just 17 years old, while visual artist Banksy's identity remains anonymous but his work is highly sought after.
The Key Takeaways from Artsy‘s Art Market Trends Report
A Nuanced Picture of the Art Market
The report offers a nuanced view of the art market, highlighting key themes in the relationship between galleries and collectors. It also provides valuable insights into how the market is evolving and what drives purchases.
A Survey of Collectors
Artsy conducted a survey of over 1,200 collectors across more than 60 countries, providing a comprehensive understanding of collector behavior. The report’s findings are based on two concurrent surveys, one for galleries and one for collectors, which were structured around the same core themes.
What Should Galleries Do to Adapt?
Balancing In-Person Events with Digital Outreach
The data suggests that fairs are no longer a one-size-fits-all solution. Instead, galleries should focus on developing a strategy that balances in-person events with strong digital outreach and engagement. This could involve investing in content, social media, and online marketplaces to expand their reach, particularly internationally.
Meeting Collectors Where They Are
The goal is to meet collectors where they are – increasingly, that’s online. Galleries should aim to extend the in-person experience through digital campaigns or follow-up content, creating a seamless and engaging experience for both parties.
