The Hiscox Online Art Trade Report 2018
The sixth annual Hiscox report highlights the continued growth of the online art market, with a projection of $8.37 billion by 2023. However, there is evidence to suggest that there has been a slowdown from previous years. Whilst the art market worth is firmly up by 12% from last year, this growth is significantly behind that experienced in 2015, of 25% growth and even last year, up 15%. However, experts believe that this is of no surprise in the advent of expected technological advancements as certain factors are currently restricting the expansion of this market at this level.
In particular, price transparency is essential for new customers to have confidence in purchasing online (90%). Whilst there is no specific timeframe for this to happen, the technologies available now support a future resolution, and the initiation of cryptocurrencies and blockchain, undoubtedly are soon to be having an impact.
Yet, for those that are already converted to buying online, it seems that their trust in the process is set, with spending limits and activity expanding, with average amounts spent averaging more than $5,000 per item, up 4% from last year and now 74% making multiple online purchases. Prints and paintings remain the preferred items bought, however, what is new in this year’s results is the gradual appearance of new media art, which includes video and digital art, with one in six purchasing this form.
There is much excitement and promise for the Auction Industry’s current and future projection. One of the strongest markets growths seen is within Auction Houses. For example, Christie’s announced its online sales had risen 12% in 2017 to US$72.4 million. This growth, however, is not reflected across the marketplace, as galleries are struggling to gain repeat buyers. This year, 43% of galleries admitted that they are not seeing repeat customers online (up from 40% in 2017 and 41% in 2016).
It is evident, from the report, the need for client database management, which enables better directed marketing and overall understanding of buyers’ needs. Along with this, improved branding, better service and technologies for a positive experience of platforms, familiarity and trust to entice buyers’ repeat business. Similarly, with the rise in mobile usage of art buyers, the platform needs to be adaptable to their requirements.
To read the full report click here.
Smartly, iRostrum encompasses all these requirements in one unique, user friendly and reliable software solution. Specifically created for the Auction Industry by Auction Specialists. iRostrum helps you to establish a trusted market with your own branded auction platform and advanced auction management software, enabling you to manage your whole auction business through the system, as well as having insightful direct data about your clients. Therefore, this is a prime time for you to harness this expanding online marketplace, as well as being set for the expected surge of online buying.
For more information contact us.