Overall slowdown - Online market expands
According to the latest TEFAF Art Market Report, 2015 marks the first decrease in the global art market since 2011, with an overall worth of $63.8 billion last year, marking a -7% decrease versus the year before. However, the overall feeling on the market is calm, as the market readjustment seems a logical and healthy consequence of the unsustainable growth of the recent years. In terms of periods, among fine art, Post War and Contemporary Art generated half the value with 46% of sales.
Among the overall slow down, online art sales are growing. The Hiscox Online Trade Report 2016 shows, that in 2015, art sales through the Internet have grown 24% over the year before, representing already 7% of the overall value of fine art sales (up from 6% in 2014) to $4.7 billion. The growth seems to be due both to existing collectors increasing their online purchases and new collectors entering the scene through the online channel. Hiscox estimates an annual growth rate for online sales to 24% annual, expecting the online art market to triple until 2020.
Traditional market players, like established auction houses or traditional galleries with integrated online platforms compete with online-only players, which show an important growth pattern, especially in the lower- and mid-end priced works, and among a new and younger generation of digital collectors. The new online platforms seem to eliminate restrictions perceived when approaching the art market and make it less intimidating and more comfortable and easier to navigate artworks, artist profiles and access art world news and trends.
According to Hiscox, 49% of art buyers confirm having made an online purchase. Among the younger generation, 19% of under 35 year olds have already bought their first artwork online, showing a positive development towards the creation of a new online art buying community.
Concerning mobile usage, a BI Intelligence report estimates that in 2020, 45% of total global e-commerce will be made through mobile devices. However, even though many inquiries in the art market already happen though mobile devices, 82% of buyers say, they make the final purchase through a PC or laptop.
Undoubtedly, it is a very exciting moment of contemporary art and online art collecting and we are excited to share the latest trends and news with our collectors here at ART MAGAZINE.
DATA SOURCES: HISCOX Online Art Trade Report, TEFAF Annual Art Market Report