Art
Online Art Auction Growth Here To Stay - Citi Private Bank Study

The fine art auction market can act as a temperature measure for how high net worth and ultra-HNW people feel about the state of the economy and their own finances. Growth of online art auctions has increased rapidly this year because of the pandemic.
Online art auctions will play a larger part of the overall market in future even after the disruption caused by the COVID-19 pandemic ends, Citi Private Bank predicts.
The virus has upended in-person auctions, accelerating the use of
web-based auctions and online viewing platforms.
As
reported here in September, a study of the global art market
showed that while sales in the first half of this year sank
because of the disruption, online sales helped alleviate some of
the pain.
Online sales of art and collectables were $4.82 billion in 2019,
or just 7.5 per cent of global art sales, with expected growth
rates only in the single digits, Citi Private Bank said in a
commentary on the state of the art market.
“That buyers have shown a willingness to bid millions or tens of
millions of dollars online is a significant development. The
strength of buying interest - despite the intense uncertainty of
the pandemic and a deep economic downturn - is also encouraging,”
the private bank said in its report, The Global Art Market
and COVID-19.
“Even when in-person auctions return in full, we feel that online
sales are here to stay and will continue to play a growing role
in the art market. Overall, the growth of online channels
provides greater accessibility and convenience for collectors and
others,” it said.
“Throughout the ages, great artists have tended to push the
boundaries, challenging themselves, their audiences, and the
conventions of their medium. The market for art, by contrast, has
historically tended to evolve somewhat less rapidly. Indeed, it
is an understatement to say the art industry has been slower than
many others to embrace digital technology,” it continued. "Still,
there is nothing quite like a crisis as a catalyst for change.
When COVID-19 hit last spring, galleries around the world were
forced to close their doors; international art fairs were
postponed or quickly went virtual, while major auctions were
delayed. The art market’s response to these unprecedented
restrictions was to embrace technology and the virtual world at
long last,” it said.
As reported by this news service, in March this year, Art Basel
Hong Kong took the decision to hold an entirely virtual fair
instead of the planned physical event. The virtual gallery gave
viewers resources such as such as direct access to research and
background information, and pricing data. Digital incarnations of
the Frieze Art Fair in New York and Art Basel in Switzerland also
used the same approach, the report noted.
Citi Private Bank also noted how auction houses Christie’s,
Sotheby’s, and Phillips opted to combine their May and June sales
into virtual sales. First up was Sotheby’s 29 June livestreamed
sale of Modern and Contemporary art. In total, the sale generated
$363.2 million, with a sell-through rate - the proportion of
lots sold - of 93 per cent.
In the Christie’s auction, meanwhile, it reported that globally
more than 80,000 people signed in to view the four hour-long
sale, which realised $420 million.
The private bank ended its comment on a cautionary note.
“However, there is at least one caveat here. Virtual-only
auctions have made certain features of the market more fluid. The
dates of major sales can now be shifted fairly easily, and with
no traditional printed catalogues currently produced, the
scheduled lots for a particular sale can change much less
conspicuously. This actually makes it harder for collectors to
keep track of developments prior to major auctions. Are works of
art removed from virtual sales because of a lack of interested
buyers, condition, or provenance issues? Today they simply
disappear,” it said.