Russian art market for contemporary art in terms of marketing

[iosif]

Publish a second article devoted to marketing the art market. Since the article was written " in the footsteps " of practice , it is hoped that it will be useful to some readers .
I would appreciate constructive criticism. Statements like "Art is not for sale ," I respected , but in this context it is not interesting.
All members of the forum - Happy New Year!
Joseph

Published in number 4 of the journal " Knowledge. Understanding. skill "
Reference is required .
Russian art market for contemporary art in terms of marketing

IA Goleman

( Moscow University for the Humanities )

The problems of the Russian art market of contemporary art from the perspective of a practicing marketer. The basic marketing problems the main market operators : artists and art dealers ( gallerists ) . The definition of art as a commodity . The applicability of the standard marketing procedures in the Russian market of contemporary art. The basic differences between specific art market from other market segments

Keywords: art market , artwork, product marketing, marketing mix , marketing, art, commercial promotion of art works and their authors.


Russian art business inherent surprising paradox : the art market, undoubtedly exists ( there are times its many participants and there are numerous , sometimes very costly , transaction ), but the art marketing, and, accordingly, the commercial promotion of the art facilities , in fact absent. Evidence brought by the phenomenon of many.
For example, one of the most prominent in the Russian art business sites [1] still vigorous ongoing debate on whether it is possible mutually beneficial cooperation of the artist and gallery owner (ie, the manufacturer of the goods and the seller). Such questions have been a hundred years removed as in other sub-sectors of the market.
In Russia it easy to find a lot of professional artists nebestalanny that the age of forty , that is, after two decades of professional activity , with shops and piles filled their paintings have neither their own exhibitions, printing or presentation of their work , or even their presence on the Internet, not to mention own commercial representative.
Strange to imagine that in this way enters the market any other product - because the market is , by definition, the environment in which supply exceeds demand . This approach virtually guarantees a market participant business failure .

In the case of most of the artists and all the situation . Is that the fact of bankruptcy does not occur, because the real purpose of the artist as a rule is not a market concentration, and continued his creative existence , even if the material at the lowest level .

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But not only artists , especially artists, are unfamiliar with the basics of marketing . Often it is possible to meet both business and the art market. ( By now speaks only of the market for modern art objects . When it comes Korovin or Titian , all changes significantly ) . A businessman sitting alone in his gallery and complains about the crisis that ate buyers, the government, which does not help financially, to artists, and the whims of requests which are endless. In this miserable traffic visitors it does not scare - he used to it .
 The author has personally conducted dozens of similar exhibitions in galleries. Even in the best , with a good story and a great location , the traffic " in the street" - less than ten people a day. Less - it means that it is often a day does not go a single visitor .
Of course, in many market segments , especially luxury goods ( designer furniture, expensive cosmetics and perfumery , author yuvelirka , high fashion , etc.) , there are the same problems with " self-propelled " traffic. But , understanding the problem , business leaders solve it . To a lesser extent - advertising, more - PR, cross- promotional activities and EVENT marketing.
In the art business , many of these terms simply do not know . The result - massive devastation galleries, unable to cope with rent payments and lack of money ( once again, we are not talking about the world of antiques , in which all strongly otherwise).

Explanation for this phenomenon might like. From the observations of the author, most operators of contemporary Russian art market - come from a creative environment . Art , kids art , and that art and grandchildren . On the one hand - it's wonderful. " Nasmotrennost " eyes and gallerists such knowledge is comparable to professional qualifications humanities scholars . On the other hand , it gives a systematic roll Russian art business in the direction of the creative part , to ignore the realities of the market and, most importantly , market technology promotion.

Let me explain with an example. When the author came to the art business , it was keenly aware of their failure in terms of art . But in a complex marketing product - the first of the four elements . As a result , as a marketer , I invited critics to make me a marketer , clear my merchandise, clearly position it in the market. Clearly, the art - not the mechanics , there are no simple answers . But at least not quite unambiguous - there is always, if you are really knowledgeable experts advise .
So , the problem is the author's opinion , the fact that business - critics just do not feel their marketing failure. And, then, and not " invited " to their marketing arsenal gallery.

So, if the "diagnosis" put us right , then you can begin to search for the methods of "treatment ." All of them are in line with traditional marketing . Having dealt with them and selecting necessary , you can begin to master , and that made ​​in the name of the article - to manage commercial promotion of contemporary art objects and their authors in the Russian market . At the same time held a brand Building, where the carrier brand advocates by selling artworks. If this control is correct, and business results will not take long .

For personal , repeatedly proven, the author's observations , like adequate management in contemporary art can bring an increase in the selling price pattern from 5 to 100 times compared to the original . A concrete example - I.A.Sapunkova graphics , artist of the Yaroslavl region.
Can not say that he was never known before the campaign commercial promotion . His work has been in several collections of famous Moscow collectors. But the successes were not systemic , and the market price of large sheets of graphics at sales was ... less than 1000 rubles. ! After the start of the planned promotion campaign , the auction " Scoop " was fixed price maintenance [2] 30 000 rub . Later, a high increase in the cost of his work was repeatedly recorded in open transactions.
Of course , the increase in prices of departure does not solve the problem of low liquidity of contemporary art. But when these wonderful works worth a penny, their liquidity was not higher.

Here we come to talk about the features of contemporary art as a commodity . In more detail , I considered this question in [3] .
Briefly also formulate the following.
In my opinion, a modern work of art - it's durable goods , with high margin potential and implicit consumer cost . In other words , this class of goods , the sale price which is not directly related to (and sometimes not at all dependent on) the cost of creating them.
If we follow this definition, we can easily find products with similar properties that have long been successfully promoted in the market. If the car - that "Porsche" or "Bentley" . If the suit - that " Versace " or " Burberry ". Examples can procreate and multiply . Everyone understands that "Volkswagen Touareg " and "Porsche Cayenne " - " odnoplatformenniki ." Of course , these are different machines . But how much their prices take "iron" dignity, and how much - imidzhnye ?
In the case of the picture - all the same, only in a more concentrated form . Researchers studying this subject in relation to the art market , a little to the Russian art market - even less (example - [4]).
How much is a blank canvas and stained ? Clean - more or less known . A " smeared " - despite anyone. If the author of this article - it does not cost anything . Because stained .
And if Picasso , then - it's expensive . But I want to remind you that Picasso did not always cost much . A priceless canvases Cezanne years gathering dust in attics is not understood nor accepted his talent Aix residents [5]. And if not Vollard , not the fact that we now have all talked about Cezanne as a great artist .
So, the first important conclusion - Items on the art market amenable to standard marketing description, and work with them based on the standard marketing procedures.

Now - no less important part of the study . Than products of the art market are different from all others? And, accordingly , require different working with them. Read more about the product, as already mentioned, can be found in [3]. I drew attention to the actual features of the relationship between the manufacturer - the artist and his distributor - gallerist ( art dealer , art agent , etc.). Here certainly has nothing to do with the standard relations " manufacturer - reseller ."

First . Both members of the business relationships in today's Russian realities are far from understanding the essence of their relationship marketing . And if there are still gallerists respect of marketing savvy , the artists, almost without exception , marketing illiterate . In this context, the author wonders why artists in high school five years taught to draw ( to produce ) , and find the program at least a couple of months to teach established market . Or at least talk about it , putting in mind the basics of market thinking .

Second . We have no legal culture of business relationships in the artistic environment . Artists complain about rogues art dealers. Art dealers , investing the money in advance of the artist (ie , in his name, in its branding ) are often vulnerable to his departure to another retailer or independent sales from the workshop at dumping prices. All this would not be so sad if they both acted according to standard legal procedures . In the meantime , selling me a picture of sales contracts ( which describe all the rights and obligations of both parties ) , the artists often say that this , "white " documented transaction - the first in their lives.

Third . Although it follows from the first notes , but so important that I write a separate paragraph . The artist considers normal to give the dealer 10%of the picture. Well - 20%. More - robbery. I think that may be correct , and ten and ninety. Depending on the circumstances . If art dealer sold five paintings at the exhibition on 40 th. , And for the exhibition paid 200 rubles . , Even taking to 90%of an art dealer will still be at a loss. Conversely, if the outstanding in demand artist known to elicit expensive painting for sale, and then 10%commission will be good and not very heavy in earning money. However, the second situation is much less common than the first.
But as many stories as " art dealer " took pictures in the elderly , is not very versed artist, implementation , and was gone. However, this is not about marketing, but about the Criminal Code.
Now - why I highlighted this issue in a separate . Because the mutual distrust of the two main participants in the art market kills marketing principles in the bud. Fix the case can only education and enlightenment , not only in marketing , but also in the legal field .

Fourth. Good seller good perfume sells perfumes any firm. Even those whose smell hardly tolerate .
But art dealer products is unlikely to successfully dealing with it, if she did not care . Typically, a successful artist and gallerist Union very personal . They are not necessarily friends, but absolutely - minded . Or if we talk about art , it is likely - " edinochuvstvenniki ." This is also a major difference from the " normal" business.

Fifth. I also briefly mentioned this in the second paragraph . Promoting the artist, the dealer can make money. Can even earn a lot more than the artist. But he is promoting the artist, and not himself . And if the artist does not understand , it will be difficult to achieve long-term success.

My personal advice art dealer , to ease tensions on the issue: if intend to work with the artist for a long time , increase your own collection of his works. Ideally - ask for exclusivity . Only in this case, the art dealer to hedge against the vagaries of the artist, as a result of capitalizing on its activities not only the name of the creator of paintings, but also its own warehouse . As well as the artist hardly art dealer wants to throw his promotion , with " on the shoulders" of hundreds of its treasury operations.
Size does not permit to analyze this topic longer ( though it is hidden reason for the huge number of failed business alliances art market ) .
Only repeat that in other sections of the market relationship between the manufacturer and distributor of products much more fine-tuned , and not nearly as dramatic.

Let's go back to marketing and its application in the art business . Marketing mix , in the interpretation of the majority of authors (eg , [6]) consists of four elements : product , commodity price , commodity distribution channels , methods of sales promotion .
So far, we briefly talked about the first three , almost touching the fourth . And he, and includes advertising and public relations , and direct sales , just not the last value.
If a significant part of the price of the product is people's opinion about it ( and it is not measured or weighed quality ) , it is obvious that without the active use of the fourth element of the marketing success is not achieved .

And here , too, we observe important differences from more conventional sales promotion goods. Say, practically running the standard advertising ( ie non-personal method of presentation of goods and services) , but all traditional advertising tools - printing, video samples , souvenirs - will be very useful . PR needs , although direct sales will hardly. But will increase the price of goods.
Exhibitions usually lead to sales, but here should carefully separate direct commercial and image effect .

Example . You can arrange a very expensive show in a nice big room , there to invite a huge number of high professionals ( which in itself is not an easy task ), and certainly nothing to sell . Because professionals are very choosy in purchases , all the walls in their homes long occupied , and artists rarely buy expensive work , often changing with colleagues.
Failure ?
If the target has been positioned correctly, it does not. Admiration of colleagues and critics, professionally brought to the desired target audience (which is also a separate and expensive task ) allow to achieve two goals at once - the growing popularity and prestige of this website , as well as the fame of his works and the specific growth unit costs ( apologize for such terminology as applied objects of art.)

Second example. You can arrange the exhibition closed in an expensive business club ( if you have such a resource in the marketing arsenal .) There are likely to be selling . But more glory and capitalization and they can not bring : buyers of these places first, authorities are not in art, and, secondly, are not always willing to make the acquisition of publicity .
Which method is better ? The answer is obvious - both are needed . A " dosing concentration " - is dependent on the current marketing situation .

Thus , the intermediate output.
Artist , as a minimum, must imagine the marketing structure of the world in which he lives. This will enable him to understand the art dealer and gallery owner , to defend their rights wherever they are violated . And at the same time to make the necessary sacrifices for the market, if you do not invest , you get nothing .
From my personal experience that compromise easier constructed as follows: the artist is ready to give up most of the income, but to be always in the black. Art dealer in case of success over time will get a lot , but all the risk - it. Of course, this is not the only model of the interaction product manufacturer and resellers .
Now gallerist . His marketing knowledge should be sufficient for successful operation in market conditions. Typically, this is much more than is required of the artist. And this is true . Caesar - Caesar .

Another frequent question from artists who did not find themselves gallerists and art dealers ( and usually remain without commercial success ) . "But what about our colleagues ? " - They ask, naming famous names . They say, whirled themselves.
The answer here is obvious. Yes, there are experts on all hands , talented in everything. For example , a brilliant draftsman and watercolorist Sergei Andriyaka is also brilliant and PR specialist. It's a fact , I even took Sergei interview specialized magazine " Advertising Technologies " [7] . And was pleasantly surprised by the artist in the field of knowledge advancement. But as you know , exceptions prove the rule . Many artists and Andriyaka one.

Another standard misconception that , they say, talent will find its way myself.
Does not break .
Modigliani now estimated in the millions. And he died in poverty. And , no matter how awful it sounds , this is not the worst case . The worst is when an artist dies, and the new owner burns square meters on the snow in the courtyard of the old canvases , freeing territory. Personally saw this , and, unfortunately , will never forget.
In general, if you look at any success story , we will always find it a promoter. Rarely - is the artist himself . Often - wife ( husband ) , relatives, friends , accidentally meet connoisseur . More often - professional art dealer and gallery owner .

And - the final conclusions of this article.
1. Operate successfully in the market of contemporary art without understanding of marketing processes and algorithms management - impossible. Rare exceptions to this rule is there, but count on them unrealistic and impractical.
2 . On the art contemporary art market are all the basic laws of marketing. And to begin to study the work in this market segment can be on standard textbooks and teaching aids , such as [8,9,10,11] , written by the author of this article (tested on the art business practices the author).
3 . There are also specific differences from other segments of the market. First of all , this product features . Then - with distribution channels ( and especially the relationship of the "artist - Reseller "). Finally, methods of sales promotion . They should be investigated by the literature devoted to the art market ( today mainly articles and internet, until the full textbooks and manuals ) , and in practice , of course.
4 . Based on a large number of practical examples and case studies , it can be argued that the use of standard marketing procedures , and adjusting them according to the specifics of the art market makes it possible to successfully exist art business even in the current difficult economic conditions .
5 . Additional long-term bonus of modern art business - constantly increasing and often very high capitalization warehouse work -promoted website as a result of the marketing activities of the artist or his art dealer ( gallerist ) .


REFERENCES

1. Poster art market professionals Artinvestment.ru [ electronic resource ] ( date of access : 28.02.2013 )

2 . Official site of the auction house " Scoop " [ electronic resource ]http://sovcom.ru/index.php?category=...r&painter=2065 ( date accessed : 02/29/2013 ) .

3 . I.A.Golman "Art as a commodity : Paradoxes and patterns ." - Journal "Knowledge . Understanding. Skill . ". Moscow, 2013

4 . N.V.Kukushkin "Stages of development of the market fine art . Theory and tactics of pricing " Moscow 2007

5 . Henri Perryusho " Cezanne " ZHZL (255) Moscow

6. Principles of Marketing Kotler F. M.: Progress , 1990

7. I.A.Golman "How to become a watercolor painting or Advertising - engine ... art! " Moscow train l "Advertising Technology », № 1 (86) 2008


8. Goleman IA " Promotional activities : planning , technology, business ." Series " Advertising technologies ." M. Gell -print , 2004 . - 352 . : With silt. , Third edition , revised and enlarged

9. Goleman IA "Advertising plus , minus advertising ." Series " Advertising Technologies ." M. Gell -print , 2002 . - 288 . Second edition , revised and enlarged .

10 . Goleman IA "Advertising plus , minus advertising - 2 ." Series " Advertising Technologies ." M. Gell -print , 2002 . - 288 .

11. Goleman IA " Russian advertising in the people " M. "Peak ", 2006. - Page 262




Goleman Iosif Abramovich - Ph.D. , professor in the Department of Advertising Moscow Humanitarian University .
Tel. +7 (985) 999 23 64 . E-mail : i7591@yandex.ru

[Wladzislaw]

Сообщение от iosif

If the car - that "Porsche" or "Bentley".
If the suit - that "Versace" or "Burberry».

Clothing brand picked the wrong <! - ~ 1 ~ ->


Any other special remarks none <! - ~ 1 ~ ->)

[iosif]

Wladzislaw, why is the example of the Barbary wrong ? Personally checked by an example: if the price of the "true " 26 Dresses transport , price -quality fakes about 6 mp and analog " but neym " - 2-3 mp . That's worth the name. By the way , do not fake branded goods for next season will be at least half the price without becoming worse. It is also part of the brand's life . " Just" dress will lose less in price .

Added after 8 minutes
Cyril Syzransky, I do not really understand the question . Is there a market ? Yes, there is . This product is made , the transaction takes place with him .
Can I participate in it, not knowing the basics of marketing ? Possible . Participate as <! - ~ 1 ~ ->
Can I make good money at the same time ? Also probably possible, but extremely rare.
Using the same laws and procedures of marketing, is incomparably easier to make money , which is also confirmed by the practice , including my personal .
That's what I wanted to bring to the public .

Added after 12 minutes
Sergey burly, I thank you for your opinion, but I really believe that to discuss the question of whether art item is pointless, if we sell them.
Certainly is.
Of course, with the specific differences from a plurality of other products.
But - while remaining marketable commodity.

[Wladzislaw]

iosif,

I have no "Porsche" or "Bentley" . But I try to buy quality clothes ( Corneliani , Zenya , Canali , etc. there are brands and easier) , Barberi is also present in the form of a suit and coat <! - ~ 1 ~ -> .

My analogy on your machine would - Gucci ( also quite pop -mark) and Bryony . Versace and other Digue - is steep firm in the representation of boys in sports. pants and sneakers . A Barberi not up to Bentley.

[iosif]

Wladzislaw, now I understand what you mean.

Added after 5 minutes
Cyril Syzransky, the harness did not try to trade <! - ~ 1 ~ -> pictures - tried.
I write only what personally watched.

A market exists as long as the produce-sell-buy.
May, of course, and all dead men, but owning the latest technology marketing die <! - ~ 1 ~ ->

[Кирилл Сызранский]

Сообщение от iosif; 2915211"

A market exists as long as the produce - sell - buy .

In your formula, the latter only on paper - modern art (ie not an antique , but any modern , mean not only conceptually relevant , but simply a modern /today figurative ) almost do not buy as works of art , not as a mandatory element of modern urban interior - " picture over the sofa ."

[iosif]

Cyril Syzransky, I agree with you, but, in my opinion, it's nothing to what I have said does not change.

Added after 12 minutes
Peter, yes, I agree , there are two options . One - reliable , but not particularly lucrative . The second high - risky , but a lot of promises . It all depends on choosing psycho . I always choose the second option. Of course , given that this is still not a roulette . Very much depends on my ( promoter ) qualification. And because the chances are not so small. Especially if advance professionally assess the risks ( I wrote an article about their assessment , ie, G -promoted artist criteria ) .
The second paragraph completely disagree. In this article I write about the necessary sensuality one artist and promoter. If they are, then the long joint cooperation is very likely

Added after 16 minutes
Mikhalych, absolutely subscribe . I practice is similar. And in general I'm not very interested in the established collectors . Their soul is already occupied . As wall <! - 1 ~ ~ -> . I very interesting form of consumption environment . In this case, a modest scale need not thousands, but only tens involved . But their <! - ~ 1 ~ ->

[Fed]

Seem repetitive, but the debate again found itself in the evaluation criteria.
Clearly, this is a commodity that requires assessment system for parties involved.
Talk about " safe - insecure " makes no sense. It's subjective and changeable .

We must look for highly underrated . That's what the evaluation criteria.
Criterion proposed in the topic, How much is the artist .
If there is an option to buy 10 times cheaper than this criterion , then this is an ideal purchase .
I am pleased once again to make sure.

Seller , respectively , need to try to hang on to the upper limit of the price criterion. In this space, and is the market margin , with all the accompanying talk and sentiments about the " Creator."

In general , the main interest is in the evaluation criteria . And their need to offer to be more versatile tools to assess the product and possible income .

[iosif]

Fed, undervalued - one of the main criteria -promoted . Because if priced or even more overvalued , it means that already worked here before you <! - ~ 1 ~ -> .
But even if the meager input prices " project " , need serious investment for promotion . And understanding how it's done . Which is unlikely to be present in untrained people . We teach students five years . And then they have to study for a lifetime <! - ~ 1 ~ ->

[iside]

Read the article . Thank you.

Read the comments . Very interesting.

As a person who is familiar with marketing firsthand , and was educated abroad and who are also responsible for promoting the artist /Cove , I must say that the article makes an impression on me , which is hard to describe, but I'll try .

First, there is the impression that the article was written a few years ago ( at least 5-6 years) , it may be due to the fact that either the author no matter what kept commitment to classical marketing , or do not know or do not attach much importance to that now " advanced marketing "is called" promotion sots.setyah " , and specialized internet sites and believe me , I know whereof I speak.

secondly , there are mistakes, some were commenting are , I agree with them in different degrees ( for example , a number of well-known brands , which the author mentioned , " Porsche Cayenne ", " Versace " and so , in my opinion , logically lead to discourse on conspicuous consumption, astronomical prices for some artists in the secondary market , collecting as a way of familiarizing with the new elite , etc., but then there would have to lead as an example not I. Sapunkova and .... ( You can put different names )

Third, the opportunity to become completely valid in relation to ros.rynku more precisely certain of its segments , and then everything becomes clear , but again, with regards to the whole ros.rynka - marketing is not a panacea , but rather an illusion that there are market and there is a promotion , a way of spending time and zarabatyvaniyadeneg .

Death of the Gallery Show