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Report: Art Basel & UBS 2020, timed to coincide with Art Basel Hong Kong, was in tune with the times: appearing in the background of the cancelled fair, for many of the functionaries of the art market, it has lost its relevance immediately after. Before the quarantine AI managed to publish articles based on the report: Art Basel & UBS — in particular, General analysis of the market in 2019 and a separate material according to the results of private sales. However within the report there is other useful information that gives hope for the development of the art market during and after the pandemic, one has only to compare the data of several sections.

So, one reason for the growth in sales of private galleries and dealers at the end of last year was the arrival of new buyers: in 2019, the number reached one third of the total number of customers. Almost half of new buyers came to the gallery through the Internet, says the report section dedicated to private transactions. And new buyers, according to information from another section, more than half of the works sold online-торговцами art in 2019. The last section today and get: about it online-продажах.

To begin with some overall figures:

• the volume of online-продаж objects of art and Antiques totaled $5.9 billion (9 % of sales just art-рынка in terms of cost);
• in 2016-2019 gallery on average carried out 22% of its sales via the Internet;
• auction houses with sales of less than $1 million carried out 23% of its sales via the Internet. For auctions with a turnover exceeding $10 million, the share of online-продаж 4 %;
• 57 % online-продаж galleries and dealers were new buyers. For auction houses, the same figure was 34 %;
• nearly half (48 %) collectors with a capital level in excess of $30 million used online-платформы to buy art;
• in a separate work purchased online, 65% of collectors with a capital level in excess of $30 million spent less than $50 тыс.; 25 % — more than $100 million, and 8 % — more than $1 million;
• the most active users of online-канала sales of art were collectors-миллениалы (i.e., those born from 1979 to 2000): 92% of them shopped online;
• 36% of Millennials paid for a piece of art on the Internet more than $50 thousand, including 9 % who have spent on one item of more than $1 million;
• 61% of collectors of all generations have used to purchase works of art Instagram;
• the main part of online-транзакций with art (77 %) linked buyers and sellers, which are at a distance of more than 1 thousand of kilometers from each other.

the Volume of online-продаж of art and Antiques in 2013-2019

Year	2013	2014	2015	2016	2017	2018	2019
The volume of online-продаж, billion $	3,1	4,4	4,7	4,9	5,4	6,0	5,9

To 2013 online-рынок art has not been evaluated nor ART Basel & UBS or other international analysts. In the 2013-2019 years, the Internet-продаж steadily grew in average by 15 % per year — is better than the sales of the art market in General (over the same period, annual gains averaged 0.26 percent). Online-продажи is not subjected to turbulence of 2015-2016, in contrast to the art market in theGeneral. The only exception is the year 2019, when sales fell slightly, but there's an explanation: note from art online pulled... fair. In particular, the fair digital art CADAF, which made debut in 2019 two issue — in new-Йорке and Miami. It turned out that buyers used to buy digital art online (the environment of its creation), wanted to meet gallery owners and artists in person, as soon as the opportunity presents itself.

it Should be understood that young collectors — is still art lovers and its buyers to whom the culture of collecting has yet to form; in an era of generational change they come to a place of collectors, going along with their culture. Why should please many customers who do both offline and online-приобретения. Among the young, but permanent art buyers 92% made a purchase via the Internet, with 9% of them purchased an item worth more than $1 million (for collectors of the older generation such purchases have allowed yourself 8 %). The use of Instagram as one of the main channels of purchase suggests that for the modern collector independent market research means more than a subjective curatorial selection.

Note the distance between collector and seller at online-сделках with art. Smallest distance in kilometers (a little less than 2 million) show transactions conducted in the United States. Here everything is clear: Americans — famous patriots own art. However, when transactions affecting participants from Asia-Тихоокеанского of the region and countries in the Middle East and Africa, the average distance is around 14 thousand kilometers: if you stretch a virtual inch of these regions, we get in London, new-Йорк and Los-Анджелес. The average cost of purchased online art at a distance of more than 10 thousand kilometers was $11.6 thousand It speaks not so much about trust (you can cheat and online-продаже within one city), but the more important factor: buying art online, people are willing to pay extra for international logistics, the cost of which may in some cases exceed the cost of the item.

Highlight the main reasons why buyers have purchased art online before 2020:

• habit: testing online-торговлю on sneakers and books, the world learned not to be afraid stored in a Network billing information and the intricacies of logistics — today was the turn of art;
• the speed and ease of purchase: today online-покупателя, especially the younger generation, are perfected to the level of reflexes: saw, clicked, bought;
• the absence of expenses on travel to fairs or auctions: an important factor that allows you to save money and at the same time to expand the circle of virtual of available countries and local markets;
• the possibility of selling the purchased item using the same platform: a online-продавцы (primarily this applies to auctions) give preference to those collectors who acquired the work through them. Besides the work itself does not require additional checks when taking in trades.

In turn, in recent seasons, the gallery moved to a partial selling art online, based on the following considerations:

• the physical space of the galleries has stopped working; for the most part, this problem was solved through the art-ярмарки less — via the Internet-магазин;
• access to an international audience: all fair, only without the cost of the pavilion and logistics — the truth is, without sales and personal contacts, which could give fair;
• from advertising to the place of purchase — one click: going online-режим, galleries avoided associated with the involvement of collectors in the physical exhibition costs — in particular, printing, hanging, receptions and др.;
• the speed of the transaction: a friendly interface and services of payment online-магазинов may not like the gallery accountants — but not the gallery owners and their collectors.

in Other words, the needs of the buyers, who tend to be online-покупкам art, and galleries, found in the Network a new channel of sales due to the weakening of payback stationary halls, coincided in three of the four points (which is rare when the original balance of supply and demand).

Now consider more closely the position of the collectors. Released in 2019, a specialized report HISCOX Online Report from ArtTactic notes five main factors that are important to art buyers online, in descending order:

1. the quality of the proposed art: is it good and exclusive as those items that I can buy offline-галереях?
2. Search and navigation: is it easy to find the segment of art and artists that interest me on the Internet in General and online in particular?
3. Reputation online-продавцов of art: how can you trust them with your money and stay calm for the timely and safe delivery?
4. the transparency of the prices: is there a possibility to check the pricing of the artist, his marketing activity (if present), the dynamics of past and current sales? In other words, if the artist own the collectors market?
5. Information on the proposed art: how fully presented background information on the artist and the work itself online-продавца?

Note that content (General description and the price), though among the five most significant for online-покупателей factors, but give in to emotional reasons — ease of search, availability of choice and artistic value of art. Better yet, if in an exclusive online series, is not available for physical purchase (it has long enjoyed David Tsvirner and Larry Gagosian in their virtual classrooms. — AI.). It also includes the best visual flow of art. The reputation of the company-продавца is on the boundary of emotion and calculation. We hope that these guidelines will help those individuals and companies that have either already changed your art-бизнес to technology, or intend to in the near future.

Today, after months of total quarantine, "unsightly" digits in 2019 from the report: Art Basel & UBS seem to us desirable and unattainable. And online-сфера — a panacea, capable of holding the art market amongvisible Islands of human interest in the coming difficult period. However, the virtual sale at the moment deprive the buyer of two attractive factors available offline-режиме: physical presence in the customers gallery (closed events where you can solve their business-вопросы) and the possibility of live communication with the dealer (some kind of free art-консалтинг in the account of the acquired business). These two limitations of the Internet-продавцы art must first remove one way or another to successfully replace the usual format of relations between the parties to the transaction. Example of an international network of galleries Hauser & Wirth, recently announced on the establishment of virtual spaces for collectors and artists, confirms that the major market players have already started working in this direction.

it is Important to note: we're not talking about a complete replacement of the physical art market its virtual counterpart — that will never happen. We are talking about the provision of affordable and full online-альтернативы other things being equal for collector opportunities. Art-рынок always going to a massive expansion of technology, but was restrained by a properly functioning physical sales channels. The growing importance of art-ярмарок for galleries in recent years, slightly delayed the digitization process, however, "crisis epidemic" technology to make up for their delayed development. If you look closely, the international fair art — is a kind of physical embodiment of the Internet: cross-border, multicultural, educational and entertaining subtext. The next step — to switch to a full online-ярмаркам — via-видимому, waiting for us in a very short time.

the following material AI in explanation of the report The Art Market from 2020 Art Basel & UBS we will examine the demographic and gender slice of art buyers in 2019: to attract them in online, you need to first understand who they are.

Denys Belkevych, AI