Art party’s hangover
John Vincent looks at prospects for an art market recovery after the coronavirus pandemic.
Is the party finally over for those who deal in high-end art? The pandemic has paralysed eventdriven auction houses, galleries, exhibitions and art fairs and the market may be slow to recover. When financial panic gripped the world economy at the end of 2008, many collectors stepped back; global art market sales fell by 36 per cent in 2009 and sales were restored at a much slower rate than, for example, luxury handbags, jewellery, clothing and shoes.
But the super-rich are always with us and, although the current crisis has had an unprecedented impact, wealthy collectors are rarely deterred by a steep recession and may still be prepared to pay extraordinary prices for works by the world’s top artists. Minor, or even merely good, works may fetch considerably less than they did.
Away from the seven and eight-figure works, the virus may reduce the pace of global activity and prompt a major rethink of the way business is conducted, particularly with regard to digital sales.
The bright news is that demand for buying art online has more than doubled during the pandemic, with online marketplace Artfinder reporting its best April in its seven-year history. More than 1,000 artists sold works and new customers were 110 per cent up on the corresponding month in 2019, both in terms of work sold and value. May proved even better, with new customer growth of about 150 per cent.
Artfinder’s chief executive officer Michal Szczesny says: “Online art venues like Artfinder are enabling the art market to continue its operation in the pandemic age. We’re very lucky our artists are able to continue creating, safely self-isolating in their studios, and customers can shop with us safely.”
One artist who has seen a big uplift in sales is Sheffield-based abstract painter Rashna Hackett. She says: “For every one painting on other platforms I have managed to sell five on Artfinder – a slither of silver lining in dark times.”
Another abstract painter, Julia Swaby, says: “It’s been nothing less than a miracle to have sold so much art at this difficult time. I’ve sold more than ever before and this has meant I can keep my studio afloat and not only that, it has reinforced my belief that art is essential to our wellbeing. “
Director Jane Tennant, of auctioneers Tennants, is optimistic about prospects of recovery and encouraged by some “strong results” across the UK during the crisis. “We have been pleasantly surprised by the levels of interest from buyers and sellers. While there’s no doubt that the migration to online bidding has been accelerated by the crisis, the prospects for normal sales with room bidders remain very positive, with many clients already asking when they can come back.”
My own view is that leading auction houses and galleries will bounce back but many smaller establishments will suffer for a considerable time, with artists, handlers and staff feeling the pain. The art market will eventually recover... but to a much smaller world.