The Role of Art & Antique Dealers An Added Value CHAPTER 5. COMPETITION AND THE MARKET
One of the fundamental challenges facing all dealers is sourcing high quality and valuable art and antiques for sale. When asked about the main competitive challenges they faced, dealers identified the availability of stock as a key problem, and in particular difficulties in finding good quality works in good condition at reasonable prices.
The other main competitive challenge related to the balance of power dealers held in the market compared to auction houses. The relative market share of these two sides of the market has varied over the last 50 years, but it appears that since the early 1990s, the competition between them has intensified, and some of the power dealers previously held has been wrested away.
In the last ten years also, the traditional distinction between auction houses and dealers has also become increasingly blurred. Auction houses are now conducting more private sales and even purchasing dealerships, such as Sotheby’s purchase of Noortman Master Paintings in 2006 and Christie’s purchase of Haunch of Venison. One of the most common concerns among dealers related to the strength of auction houses and their “behaving like galleries” and actively taking private buyers. However, there has also been an increasing tendency for dealers to move away from their traditional roles as principals, and towards financial business models that are more similar to auction houses. Some dealers also run auctions in-house periodically, although these are reported to be primarily a marketing and publicity device to attract buyers rather than a deliberate move into the auction sector.
The blurring of boundaries has also seen some collaborations in the market between auction houses and dealers, for example in jointly promoting and selling works from a particular genre or collection. In reality, both sectors of the market face a number of factors and challenges in common, including the state of the international economy, government regulation, and a number of other demand and supply-side issues.
5.1 Competition for Supply
Most dealers concur that there is now more competition in sourcing works than there is in finding buyers.
While demand for different categories of art and antiques rises and falls over time, supply in many sectors of the art market has diminished, and one of the biggest competitive challenges raised by dealers relates to the growing difficulties they face finding and sourcing good quality art and antiques at reasonable prices.
Historical & Future Perspectives 39
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64