article on the art market with tsiferkami

[Meister]

Found an interesting article, though a bit outdated.
http://antrakt.ng.ru/antiquare/2008-...tbusiness.html

The European fine art foundation (TEFAF) in conjunction with Arts Economics, a company engaged in research and economic issues the art market, has released a Analytical and statistical study of world art market, 2002-2006 (the first part of this study was published in 2002 and covered the period from 1998 to 2001). In its preparation, was also attended by such prominent European art dealers association, as SLAD (the Society of London Art Dealer), LAPADA (the Largest Trade Association for Professional Art and Antique Dealer), BADA (the British Antique Dealers' Association). "NG" offers chitateleyam most interesting facts from this study.

Читать дальше... 

General trends

Researchers note that the global art market began to increase significantly in 2003, and 2006 became the year of the sharp rise in the number of sales, total volume and average price index. If in 2002 the total turnover of the world art market amounted to 26.7 billion euros, in 2006, this amount grew to 43.3 billion euros. From 2002 to 2006, sales of art-market grew by 95%of the turnover in value terms and 24%by number of transactions.

All sales are divided between two large sector of the art market - auction (they accounted for 48%) and art dealers (52%). As for auction houses, there is, of course, dominated by Sotheby's and Christie's - their share price in the amount of 27%of all auction sales in the world (followed by Bonhams (5%) and Phillips de Pury (6%) and 46%of the total sales. For the world leaders in 2006 became a turning point. Sotheby's sales totaled 2.8 billion euros, its main rival, Christie's - 3,6 billion euros. In 2006 the turnover of the Impressionists in both auction houses rose by 80%Contemporary Art - 60%at Sotheby's and 47%at Christie's.

The probable reason for not trading the financial crisis
Overall, the art market in the world has about 5 thousand auction houses at different levels. If Sotheby's and Christie's auction houses belong to the first, higher level, the second level include national leaders such as Bonhams in the UK, Artcurial in France, Villa Grisebach in Germany, Kornfeld in Switzerland. There is a third level, which includes regional auction houses, often specialize in certain areas of art. The total turnover of auction houses in 2006 amounted to 20.8 billion euros, up 50%over the previous year. Here, the bulk of sales are in the UK (5.6 billion euros) and U.S. (9.5 billion euros). The highest number of transactions performed in France (18%).

The second driving force in the art market - dealers, sector more fragmented than the auctions. The researchers note in the market about 4 thousand major art dealers, which determine 75%of market turnover, and of them more than a thousand influence the level of performance value. All in all, it is estimated that the market appears on about 71 thousand art dealers, among which were accounted for and the small galleries, brokers (who assume things on commission), the agents of individual artists. In 2006 the world was carried out about 1 million of dealer deals worth 22.5 billion euros. Rate this conditional, because, unlike auction houses, dealers do not distribute a significant amount of confidential information, including, for example, the final price for which the thing was sold. Despite the fact that it is at the dealer a high level of expertise, their business is more exposed than the auction: as a rule, even very large dealers have a relatively narrow specialization and localization within the same country. Auction houses about 38%are for dealers sources of items for future sales.

2006 was a turning point in one respect: as the researchers note, both sectors were rapidly converge. Auction houses began to make a large number of private deals, not only in the framework of the houses themselves, but getting to this private galleries. So Sotheby's bought the Dutch Noortman Master Painting, once belonged to one of the largest antique dealers - Robert Nortmanu and paint the old masters. Christie's, in turn, bought out the British contemporary art gallery Haunch of Venison. Dealers for its part also began to take on the role of auctions, leaving, therefore, from their traditional role. It is noted and the high level of cooperation between the auction houses and dealers.

A significant part of the art market over the past few years have become international fair of Fine Arts, which create favorable conditions for mutual search for sellers and buyers of art. This ensures a large flow of visitors: in 2006 in Maastricht TEFAF visited 84 thousand people, the Biennale of Antiquaries in Paris - 90 thousand, Art Basel - 60 thousand, Friez Art Fair in London - 63 th According to the poll participants TEFAF, 40%of their subsequent transactions in a year are directly related to participation in various fairs.

Enormous role in shaping the art market plays and moving works of art. International art market - one of the global market economy, with different size and format for each country. In matters of import and export of the most intense is the European art market: in 2006 exports amounted to 8.2 billion euros, imports - 4.9 billion euros. In this case a major European country, which handles the bulk of the art - United Kingdom: in 2006 the share of its imports were 3.5 billion euros (71%of its imports), exports - 5.4 billion euros (66%of the European exports). Among the other European intensive importer and exporter France (7%of its imports and 14.5%of exports). The intensity of import-export to a large extent depends on the laws of individual countries in this field. For example, in the United States, where there are no duties on import and export of works of art and very few restrictions in this area, imports in 2006 amounted to 5,4 billion euro, exports - 5,8 billion euro.

 
On materials Arts Economics
Features of the largest art markets

Researchers called the most important art market art market is the United States. Its share of the turnover in value terms in 2006 was 46%of the global art market, and turnover - 19,8 billion euros, of which more than 10 billion accounted for by art dealers. Sharp drop in the art market has happened in the U.S. since the tragedy of September 11, 2001, but since that time the market began to soar. For example, the market grew in value from 1998 to 2001, only 7%, and from 2002 to 2006-th - at 105%. Market volume for this period increased by 24%.

The main center for the art-market in the U.S. is New York: here is 42%of all transactions in the country. Of the 100 largest auction sales in the world 59 committed in New York at Sotheby's or Christie's. Here are representations about 2 thousand largest art dealers from 25 thousand registered in the United States.

Second large area of art-business is Europe. Turnover in the EU countries in 2006 amounted to 19,2 billion euros. It grew by 38%relative to 2005 and by 70%relative to 2002. In 2006, the European art market was 44%of the turnover of the global market in value terms. However, the proportion due to growth of the U.S. market fell by 6%relative to 2002.

Largest market after the U.S. researchers call the UK market. Its share has left 60%of the European market and 27%of the world. Turnover of transactions for the year 2006 the UK amounted to 11,6 billion euros. Share of the two major art centers - London and New York - accounting for 72%of the market together. If from 1998 to 2001 the UK market grew by only 1.6%, then from 2002 to 2006, growth amounted to 81%of the turnover in value terms. In the UK there are about 8,9 thousand vendors of art, of which 400 auctions and 8,5 thousand - art dealers. Just art business consisted of about 48.5 thousand employees. 35%of auction sales and 60%of the UK market owned by Sotheby's and Christie's. About a thousand of the largest art dealers in the UK are members of large and influential associations. Britain has about 30 international art fairs.

Among other European countries in terms of art market by France and Germany. The share of France in the European market is 14%, in the world - 6%. France has about 8.6 thousand legal sellers of art and about 49,3 thousand employees. Significant changes in the French art market occurred in 2000. Prior to that, for five centuries auctions were run by the Ministry of Justice, and State had a monopoly in the field of auction sales. Since 2000, the status of auctioneers has changed, the monopoly was abolished, a period of competition, both among the French auction houses, as well as with foreign companies. Sotheby's held its first auction in France in February 2001, Christie's only a month later. From 2002 to 2006 the market grew by 36%of the turnover in value terms and 24%by volume. The most important sector of the French art market are the product of the impressionists and modernists.

Third place in Europe is Germany, whose share on the world art market is 3%. It is the second country in the world in the number of auction houses, galleries, fairs, art societies and art schools after the United States. German art dealers are concentrated in major centers - Munich, Berlin, Cologne and Dusseldorf, auctions are scattered around the country more freely. From 2002 to 2006, turnover on the market in Germany grew by 94%, especially in connection with the increase in prices on the German art world level.

 
From 2002 to 2006 the proportion of art-market countries outside of Europe and the United States increased from 3,8 to 7,7%. The most significant change in this period occurred on the art market in China: in 2006 its share of the global market accounted for 5%of the volume in terms of value and volume of auction sales - 1.1 billion euros. Turnover in the market of contemporary Chinese art from 2003 to 2006 grew 100 times. The greatest changes occurred from 2005 to 2006, when the auction sales price increased by 983%, and the number of lots - at 477%. The turning point in 2006 - the result of simultaneous growth in demand from wealthy Chinese and Western customers and increase the supply of Chinese art market. And this despite the fact that 20 years ago in China there was no auction houses, nor the demand for art and antiques. Now in China there are about 100 registered auction houses, the largest of which, apart from Sotheby's and Christie's China Guardian and Poly International Auction Company. According to official figures, China has about 5 thousand art dealers, while the total number of unregistered sellers, according to researchers, can reach 50 thousand

As for India, this market is entering the phase of formation. He now works primarily for export, which shows the unprecedented growth: from 2000 to 2006, exports have grown from 2.6 million euros to 478 million euros, ie 186%, while for the year from 2002 to 2003, he increased from 5 to 508 million euros.

Russia art market in the study hardly figures, which is understandable: first, in comparison with European countries and America, the turnover of art in our country is negligible, and secondly, the market is still a shadow and to hold anything like a precise study has not is possible. The researchers compared only to the words of the situation on the Russian market with China and India and lead single digits. For example, note the lack of art in the Russian market in 2006, when exports totaled 0.8 million euros, imports - 2.2 million euros. Most imports to Russia has been achieved in 2004-2005 (6.6 million euros and 12.2 million euros, respectively), which is probably connected with the abolition in 2004, 18%duty on import of works of art by private individuals. Greatest export - in 2002 amounted to 6,5 million euros. Can also calculate the turnover of Russian art at the major auctions, for example, at Sotheby's in 2006 it grew by 12%.