Art Investment

Forecast: how to change the infrastructure of the art market in the five-year term

According to a recent report, "The Changing Role of antiques and dealers," prepared by Dr Clare McAndrew to the International Confederation of dealer CINOA ( Dr. Clare McAndrew, The Role of Art and Antique Dealers: An Added Value. CINOA.org. 2011 ), to 2020 on the art market of online transactions will exceed the number of sales through traditional channels (right now, according to the author of the report, the share of transactions in Networks does not exceed 10 percent of the total). Forecast the timing and pace of these changes, perhaps, overly conservative - probably in order not to spoil the mood of antique dealers and not to escalate an already grim atmosphere. Art Market (especially antiques) actually proved to be very sluggish in introducing commercial technology. Compared with some retailing, he reformed just a snail's pace. But I think that in any case, the processes of virtualization will be developed in two times faster than projected in the report, and after 5 years the art market will simply not learn.

Someone continue console ourselves with talk about the comfort of a "niche". But, obviously, will survive in the modern history of the one who will not cling to the past, will not oppose the stubborn challenge of a new day its previous successful experience, but rather tries to maximally adapt to new conditions. Virtualization of the art market provides about the same benefits, which makes use of plastic cards in retail - the acceleration of transactions, increase the number of transactions, an increase in turnover and a significant increase in audience of potential buyers. As a result, these positive effects outweigh the many available online fraud risks and the actions of unscrupulous contractors.

But in addition to "plastic" benefits, the advent of new forms of trade was inevitable mainly for economic reasons and because global social and behavioral changes.

Start with the fact that Web technologies have significantly lower "price" of entering the art market. Of course, a purely technical sense, without taking into account the most important reputation component (to create a just and it takes years). For example, the "ticket" on the auction market today de facto available even microbusiness. In particular, the cost of developing a virtual auction site in the base configuration (the directory subsystem accounting rates, private office), it is sufficient to start work now is about 500 thousand rubles. And with the advent of "cloud technology" for the organizers of the thing of the past need to buy their own expensive equipment to ensure uninterrupted operation at high loads and provide costly technical staff. For example, those tasks that previously had to purchase their own servers, cabinets, and communications equipment worth about 40 thousand dollars, now it is effectively solves the "cloud" provider for 200-300 dollars a month. In addition, the status of an electronic platform allows you to spend significantly less than that required for a traditional auction and the gallery business - for example, makes it possible to employ fewer sales staff, as well as avoiding the cost of renting commercial space standing at the right, but expensive places, renting rooms there only for specific events.

However, even bólshee impact on the business case by social change. A new generation of young buyers without the fear relates to online transactions, it is used to them. It is noticeable that people are increasingly burdened by the physical movement in space. Clients has become increasingly difficult "to pull" in the gallery or auction room, and over time the proportion of such "lazy shoppers" will only grow. In turn, changes the psychology and the owners themselves works of art. Owners of high-quality masterpieces of things and want to get access to a wide global audience, to ensure high competitiveness of the transaction. It turns out that the online format is interesting to most players. This means that the infrastructure will have to rebuild as required time.

How soon will change the landscape of the art market? Who has the best chance of survival and growth? Let's try to mention some promising business formats of the art market in the near future.

  • Auctions and Internet platforms. Historically, auctions are the locomotives connectedness art market. In view of the openness and competitiveness of their format, they have long been published in the online auction catalogs, report on results and provide customers the opportunity to place absentee bids online. In order to meet the buyers, auctions are constantly improving the quality of the presentation of objects on the Web and do not spare the money to improve their on-line services (video broadcast from the floor, remote-bidding, etc.). This commitment has contributed significantly to the fact that in recent years, auctions have become actively select bread at galleries and crowd out other forms of dealer trade. It is obvious that the new situation only auction houses continue to score points. But on the other hand, in the future will increase competition between themselves auctions, sharp struggle for material for customer loyalty. However, this problem is beyond the scope of this article.
  • virtual art fair. trendsetters of this format was the first Internet-fair VIP Art Fair ( http://www.vipartfair.com/ ) held in January 2011 (see here and here ). Leading galleries of the world at this site rented virtual stands, remotely presented the work of their artists and are able to communicate with exclusive clients. For the first time this happened completely online - no real halls and meetings. The first pancake came out lumpy (the site could not resist the flow of visitors and "crashed") - but this should not mislead anyone. Technical problems - solved. And the format that will be increasingly in demand. After all, virtual model of the fair is understandable gallerist, the idea is easy to "sell", and the costs of participation in an online event is much lower than for participation in the actual shows. Moreover, the method of monetization is also quite obvious. It's not "Facebook" - no need to long to explain, for what organizers are taking the money.
  • magazines about art and life style in the online format . These publications form the fashion and art to define the rules of the art consumer product. Journals will vary, but are not going anywhere. Suffice it to say that the most acute phase of the crisis of paper media, this fall in Russia are beginning to come out some new art magazines (Russian version of The Interview at the end of the year, Garage Dasha Zhukova, plus another new magazine Milena Orlova), and veteran of the market ("ArtChronika" and "Art") has already appeared in modernized form. Most of the historical art magazines in today's rapidly building up its online component, and changing the way the material. "Boring" art history materials are diluted more and more popular publications migrate toward the "light" format, art & lifestyle. Nevertheless, magazines continue to play an important educational function - will tell you what happens in art, what art to buy and how to correct their own.
  • Information portal for collectors and investors. This is the site where the art is not ashamed to say as an investment area. Portals accumulate pricing information, provide the analyst, sometimes act as a forum for the art community. In Russia the most complex of these problems are solved by our ARTinvestment.RU. In the future, online publications have good potential monetization (online access to databases and indexes, advertising, and paid advertisements for the sale of works, etc.) In addition, some of which has recently been promoting its own electronic trading platforms, conducts its own online auctions, probing new direction.
  • Social Network for collectors and professional participants of the art market. market has recently been attempts to promote a social network artists, collectors and dealers. In addition to the well-known Art.sy, there are dozens of such networks. But in reality, the prospects of separate social networks for the art community while not obvious. On the one hand, a potential creator of this resource can bring the magic name of "social network" and its relative availability: the development of social networks underlying the functional costs today of 1.5 million rubles. However, this format is difficult to monetize, and the costs for promotion of social networks may exceed the cost of developing dozens of times. Enormous costs, but without the social network of promotion - it's all money thrown away.

In Russia, meanwhile, feature a social network for the art community quite successfully perform regular Facebook - it is they prefer to talk critics, artists, collectors and gallery owners. And this site has become an effective tool for rapid reporting of "their" resonance of events and exhibitions.

However, even the most adapted to the new conditions of business formats bright future does not promise an easy life. Online - it's too lively and competitive environment in which not only ups and downs but come with lightning speed. It literally has to run to stay in place, and be proactive. For the "people" network is not very loyal to the site, personal connections, as in traditional business, no one is held - will be something more interesting, and everything instantly perebegut there.

In Internet, unlike traditional businesses, train running the rule: "The winner is not the one who made the first, and those who did better." For auctions and other market participants, this means the need for art is always to offer the best service and constantly seek new ways of working with buyers. So, to win more, who will be ably to build the tactics of effective interaction with other participants. Under the new conditions will increase significantly the role of marketing management (a topic to which the art market for a long time was regarded with disdain.) In short, the art market, as well as throughout the new economy, success will depend on the ability to attract a lot of traffic (the audience) and the ability to effectively monetize it.

Vladimir Bogdanov, AI


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