1、 Hiscox online art trade report 2020 PART ONE: THE ONLINE ART TRADE INTRODUCTION 1 KEY FINDINGS 2 ONLINE ART SALES 4 ONLINE ART SALES GROWTH AND BREAKDOWN 5 OUTLOOK FOR THE NEXT 12 MONTHS 7 TOP AUCTION HOUSES ADAPT TO COVID-19 8 INDUSTRY CONSOLIDATION 10 THE FUTURE OF THE ONLINE ART SALES MARKET 12

2、TIMELINE 14 FROM EVOLUTION TO REVOLUTION? 16 ONLINE ART SALES TRENDS AND FINDINGS 18 METHODOLOGY 26 COMPANY PROFILES 27 Cover artwork: Ann Craven, Heart of Gold #1, 2009 | 11 x 8 1/2 inches, Zerox Print Edition for White Columns, 2009 | Edition #10 of 50 plus 10 APs Courtesy of the artist, Southard

3、Reid, London and White Columns, New York Hiscox online art trade report 2020 1 THIS YEAR THE ONLINE ART TRADE REPORT IS GOING TO BE PRESENTED DIFFERENTLY; WE WILL BE PRODUCING A SHORTER VERSION FOLLOWED BY FURTHER UPDATES DURING THE YEAR, WHICH WILL ALLOW US TO BETTER TRACK DEVELOPMENTS IN THE MARKE

4、T AND SHARPEN OUR FOCUS ON SPECIFIC TRENDS. Introduction Will coronavirus (COVID-19) be the catalyst to finally ignite a spluttering online art market? It is the question all art market twitchers are asking. I could sit here on the fence and find good reasons to say yes, no or maybe. I am going for

5、a bold yes, hopefully not as the result of cabin fever having been locked away so long. The main reason is that social distancing is here to stay for long enough that it will change how we buy art as well as many other things. No longer will we have the joy and pain of crowded art fairs and gallery

6、openings. Dealers will have to find new ways to create the buzz that makes us have to buy NOW, lest we dwell and lose yet another treasure that we cant live without. I am not sure how, but I am sure they will. As always I hope you find this report useful as we wait with baited breath to see what hap

7、pens next, in the immortal words of Captain Jean-Luc Picard “Things are only impossible until they are not”. Robert Read Head of Art and Private Clients Hiscox 2 Hiscox online art trade report 2020 Key findings ONLINE SALES STALL BUT 2020 COULD BE A PIVOTAL YEAR Online art and collectible sales stal

8、led in 2019 generating an estimated $4.82 billion up 4% from 2018. Growth in this market has steadily declined in recent years, falling from 12.5% in 2017 to 4% in 2019. However, pure online-only auction sales by Christies, Sothebys and Phillips generated $370 million in the first half of 20201, whi

9、ch was which was more than five-times higher than the same period in 2019. The COVID-19 crisis forced the art world into an abrupt lockdown and with little warning, online became the sole promotion and sales channel for much of the industry. With the majority of platforms surveyed expecting the pand

10、emic to have a positive impact on the online market in the longer term, could this be the moment the art world finally embraces digital technology? RAPID GROWTH IN OTHER COLLECTIBLES At 32%, fine art accounted for the largest share of online art and collectibles sales some way behind watches and jew

11、ellery (23%). Other collectibles such as stamps and memorabilia now account for a quarter of online sales, and as traditional auction houses in particular look to attract younger collectors, we expect to see a greater focus on this segment. A MARKET ON DIFFERENT GROWTH PATHS Online platforms display

12、 a broad range of growth patterns; while Heritage Auction posted a 0.5% decline in sales in 2019, online-only auctions at Sothebys grew 55%. We have also seen failures, with Paddle8 filing for bankruptcy in March 2020. CHRISTIES, SOTHEBYS AND HERITAGE PASS $1 BILLION IN ONLINE SALES Sales at these t

13、hree auction houses increased from $636 million in 2015 to $1.0 billion in 2019 a 58% increase (equivalent of 12.1% annual compounded growth). The COVID-19 crisis has significantly accelerated online sales, with Sothebys reporting a 131% increase in the number of lots sold online so far this year (M

14、ay 2020) and a 74% increase in average price compared to 2019. Heritage Auction reported a 10% increase in online sales for the first five months of the year. BIG GALLERIES COULD EMERGE AS KEY ONLINE PLAYERS Some 63% of online platforms expect existing art market operators such as galleries to emerg

15、e as big online players when they finally get to grips with digital technology. Over the last months we have seen many galleries embracing technology from online private viewing rooms to virtual reality. However, some of the big galleries, such as David Zwirner and Hauser fine arts and luxury and ar

16、t and objects. Although live auctions are likely to remain the core business, Sothebys is eyeing opportunities to develop new sales channels including marketplaces, e-commerce and even retail. The impact of this strategy can already be seen in the growth of online-only curated sales; in 2016 (the ye

17、ar of launch), just 17 online sales were conducted generating $6.5 million, but by 2019, this increased to 129 online-only auctions and $80 million in sales. The rate of online growth has accelerated significantly during the COVID-19 crisis, with 37 dedicated online sales since lockdown (20 March 20

18、20) raising $53.8 million1, compared to only $6.3 million for the same period in 2019. The auction house has seen a 131% increase in the number of lots sold online so far this year, and a 74% increase in average prices compared to 2019. The online sales spanned all categories of fine art and luxury

19、objects, and include innovative new formats, such weekly online watch auctions, presented in a rolling sale format with a new selection of watches being unveiled every seven days. Sothebys recent decision to open a new digital marketplace for blue-chip galleries, called Sothebys Gallery Network, sig

20、nals new digital ambitions for the auction house. CHRISTIES Christies was a relatively early adopter of online-only sales, starting in 2011. By 2013, it had 51 online-only sales, peaking in 2016 at 118. Since then, Christies has hosted between 85 and 88 sales per year, and these sales generated $86.

21、1 million in 2019, out of the $270.4 million online total (online-only and online bidding). As Sothebys ramps up its online presence, Christies is likely to follow suit, having already announced an expanded programme of new online sales in May (normally one of the biggest auction seasons in the art

22、market). Christies is likely to follow suit, having already announced a new relay-style auction concept for July, titled ONE: A Global Sale of the 20th Century. This sale will present masterpiece-level works of 20th century art together in a curated live-online hybrid sale, blurring category boundar

23、ies and bringing clients together in an unprecedented way. This is a re-think of conventional evening sales, from across Christies four major salerooms and time zones Hong Kong, Paris, London and New York. Bidders will be able to SOTHEBYS HAS SEEN A 131% INCREASE IN THE NUMBER OF LOTS SOLD ONLINE SO

24、 FAR THIS YEAR AND A 74% INCREASE IN AVERAGE PRICE COMPARED TO 2019. CURATED LIVE AND ONLINE HYBRID SALES, WHICH BLUR CATEGORY BOUNDARIES, COULD BRING IN CLIENTS IN A NEW AND UNPRECEDENTED WAY. Hiscox online art trade report 2020 9 HERITAGE AUCTION REPORTED A 10.2% INCREASE IN ONLINE SALES BETWEEN 1

25、 JANUARY 2020 AND 13 MAY 2020, SUGGESTING THAT THE AUCTION HOUSE HAS SO FAR MANAGED TO WEATHER THE CHALLENGES CAUSED BY COVID-19. participate both online, via Christies LIVE online bidding channel, and where regional, government advice allows, clients and phone bidders will be welcomed in each saler

26、oom location. HERITAGE AUCTION Heritage Auction has built one of the strongest online art and collectible businesses in the world, with $484 million in online sales in 2019 (similar to sales 2018). Although the growth in sales was not as strong as Sothebys (+25.5%) and Christies (+8%) last year, Her

27、itage was one of the earliest adaptors, embarking on online sales in 1999. Online sales accounted for 58% of auction houses total sales in 2019, compared to Sothebys at 4.4%, suggesting there could be significant scope for online growth among many of the traditional auction houses if they are prepar

28、ed to embrace digital technology. Top three auction houses: online sales ($ million) 200 400 600 800 1,000 Sothebys Christies Heritage 2015 130 130 162 344 2016 155 217 349 2017 180 215 438 2018 200 250 487 2019 250 270 484 Top three auction houses: online sales ($ million) 10 Hiscox online art trad

29、e report 2020 2According to CBInsights, venture capital and private equity investment was down 13% in first quarter 2020 compared to fourth quarter 2019, however this is likely to deteriorate further over the coming months as the impacts of the COVID-19 crisis are being felt. Industry consolidation

30、The COVID-19 crisis could speed up the long-awaited consolidation in the online art market and present significant opportunities for traditional operators to gain a foothold in the online space. Some online platforms are seeing stagnating growth, while others struggle to stay afloat. The online mark

31、et has already seen one of its first victims this year Paddle8 which filed for bankruptcy in March. Founded in 2011 and once a darling of the early generations of online platforms, the bankruptcy followed a lawsuit against the business for withholding funds from a benefit sale. Although this was not

32、 a direct outcome of pandemic, it shows that some online art platforms and marketplaces are struggling to scale and build sustainable businesses and so the current crisis and forecasted downturn might put further pressure on these businesses. Some 67% of the online art platforms surveyed this year s

33、aid they expected more industry consolidation in the coming 12 months (slightly lower than 71% in 2019). Despite online sales predicted to increase overall, some platforms may still struggle with high overheads, and pressure on cash flow as well as limited access to external funding2. Significant co

34、st-cutting is expected. The outcome of a leaner online industry could set these companies up as attractive targets for other online art and collectibles platforms, or by auction houses such as Christies or Sothebys. The current market could be a great opportunity for traditional operators to increas

35、e their presence online, by acquiring platforms focusing on niche segments in the art and luxury domain. 19% 15% 67% Do you expect more consolidation in the online art industry, i.e. mergers and acquisitions of different online art-related companies, in the next 12 months? YesNoDont know Acquisition

36、MergerInvestment Merger and acquisition trends (number of transactions) 01234567 2019 2018 2017 2016 2015 2014 2013 Hiscox online art trade report 2020 11 SELECTED MERGERS AND ACQUISITIONS Apr-13Artspace and VIP Art Fair Artspace, a website launched in 2011 that facilitates online sales for more tha

37、n 100 galleries and non-profit organisations, acquires VIP Art Fair, an online art fair selling website started by dealers James and Jane Cohan and investors Jonas and Alessandra Almgren as the VIP Art Fair that same year. Aug-14Artspace and VIP Art Fair Artspace was acquired in 2014 by Phaidon to b

38、uild an integrated art vertical including e-commerce and digital and print publishing. Aug-14Demand Media and Saatchi Art Demand Media (now Leaf Group) acquired Saatchi Art (online). The deal was reportedly worth $17 million in cash and stock. Sep-14LL buys Stockholms Auktionsverk. Feb-15Christies C

39、hristies buys Collectrium, the online start-up collector management tool for a reported $16 million. Oct-15Auctionata Auctionata acquires the London-based valuation company ValueMyStuff (VMS). May-16Auctionata and Paddle8 Auctionata and Paddle8 merged bringing together 800,000 registered users and $

40、150 million in joint annual sales and aiming to grow the global mid-market for art, collectibles and vintage luxury. Jun-16Rise Art and Artfetch Rise Art bought the Irish curated sales platform Artfetch for an undisclosed sum. Artfetch brings Rise Art over 70 international artists to add to their se

41、lection. Sep-16Saatchi ArtThe Other Art Fair was acquired by Demand Media, owner of Saatchi Art, to offer buyers the chance to buy art both online and offline. Both the fair and the online gallery provide buyers with a chance to discover emerging artist, unifying two important sectors of the art mar

42、ket. Oct-16SothebysSothebys acquires Mei Moses Art Indices, the auctions sales database with 45,000 repeat sales providing an index of art prices over time. Sothebys intends to use the database to provide their clients with information personalised to their collections. Nov-16ArtnetOnline auction da

43、tabase and auctioneer Artnet acquires Tutela Capital. Dr Fabian Bocart, co-founder of Tutela Capital, joins as head of Artnet Analytics. Dec-16MutualArt Group MutualA and The Artist Pension Trust merged to form the MutualArt Group which facilitates art sales by combining MutualAs website and 500,000

44、 members with The Artist Pension Trusts collection of 13,000 artworks by over 2,000 artists. Dec-16Drouot Digital and Expertissim Venture capital company NextStage AM, invested 2 mililon into French auction house Htel Drouot to launch Drouot Digital, an online platform to sell art live. The move als

45、o brings Expertissim, also funded by NextStage AM, into the partnership, and will combine Drouot Lives 120,000 members with Expertissims 80,000 members and network of experts. Jan-17ArtnetArtnet acquires the intellectual property of online secondary market sales company ArtList, along with two out o

46、f three the founders. ArtList ran from January 2015 to July 2016, and will now help Artnet expand its private sales online. Apr-17Artsy Artsy acquires ArtAdvisor a New York-based art technology start-up. Jan-18SothebysSothebys acquires Thread Genius, a start-up company which presents users with thei

47、r personal taste using image recognition technology. Feb-18ATG/ Lot-tissimo Auction Technology Group (ATG) merged with the German art and antiques portal Lot-. Feb-18Sothebys Sothebys acquiresV,anonline marketplacefor vintage and antique furniture and decorative objects. Oct-18Barnebys Barnebysacqui

48、res online valuation firmValueMyStuff. Dec-18A Walmart acquires A. Mar-19Artory and Auction Club Artory, the blockchain-backed digital art registry, acquires Auction Club, a subscription-only database that hosts sales information from 4,000 international auction houses. The acquisition merged the tw

49、o companies teams and made public for the first time Auction Clubs sales records gathered from around 250 businesses in 40 countries; the data started to appear in the Artory registry in May 2019. Oct-19InvaluableInvaluable is co-lead investor in a $4 million fundraising round for Artmyn that will finance the expanded distribution of its art scanning technology. Nov-19Gemini Trust Company and Nifty Gateway Gemini Trust Company, LLC (Gemini), a cryptocurrency exchange and custodian, announced