The Role of Art & Antique Dealers An Added Value
There are a number of important retail galleries surviving this trend however. Large international, “brand-name” galleries, often with premises in a few major cities around the world were still operating successfully via the retail model in many cases. Other successes included multi-service general shops in smaller markets (with services such as valuations, restoration and auctions in-house); smaller, specialised one-man shops, either where rates are feasible or in major, visible thoroughfares such as key cities or destination towns; and some one-stop, convenient and cost-effective shops or multi-shop premises (for example a group of dealers in a rural area with ample car parking, cafés and other complementary businesses and attractions).
4.4 The Event-Driven Market The art trade now takes place in an event-driven market place.
The art market, and particularly dealers’ businesses, are shifting over time from being highly fragmented to centring on key events. The biggest shift in recent history for dealers has been the growth of art fairs. Fairs are now central to most dealers’ business models and an important force in bringing dealers and their buyers together, often from geographically diverse locations. Nearly all of the dealers interviewed attended local, national and/or international fairs on a regular basis, and these events have become a vital part of many dealers’ livelihoods, allowing otherwise prohibitively costly access to global buyers and each other.
There was wide agreement that the move towards events and centralisation was a conscious bid to react competitively to auction houses. Fairs are seen as an important way for dealers to collaborate together in the face of increasing competition from auction houses and a means to combat auction power by creating some of the same “one-room” excitement and competitive energy. Some dealers felt, however, that dealer collaboration via fairs could go much further, and dealers should consider offering joint services, selling and marketing within the networks used at fairs on a year round basis.
Although the proliferation of art fairs in recent years has brought about its own substantial expenses for dealers (in exhibiting, travel and other ancillary costs), a majority of dealers feel that the continued growth of art fairs had been a positive development in the art market. Some referred to these events as a “necessary evil” in light of high expenses alongside their importance for marketing and sales.
Although the number and importance of fairs has grown very rapidly over the last 10 years, there are some indications that this area of the market is seeing some consolidation in recent years. Dealers reported that although they attended more fairs in the past, in the last two years they have begun cutting back attendance and concentrating efforts on fairs that are best suited to their businesses, largely due to cost concerns and a lack of real results from some events. Some also commented on a drop off in quality of fairs in the last two to five years, with the for-profit
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