Art markets

Art Galleries in Transformation: Is COVID-19 Driving Digitisation?

“…The gallery business is strongly based on personal contact and social interaction between gallery and buyer, and is mainly focused on physical locations, such as the gallery space and art fairs (Arora and Vermeylen 2013;Smith et al 2006). In general, the art market is characterised as relatively exclusive and intransparent, which means that information such as prices and the entire sales process are usually treated as private and confidential (Adam 2014).…”

“…However, this way of conducting business has been challenged by the increasingly readily available information on the Internet and the opportunities that new digital communication technologies offer. Digital channels enable collectors and buyers to make more informed buying decisions (Arora and Vermeylen 2013;McAndrew 2015;Samdanis 2016). They facilitate worldwide networking and communication, enable transactions and acquisitions at a distance, and thereby provide the basis for new business opportunities on the art market (Samdanis 2016).…”

“…They facilitate worldwide networking and communication, enable transactions and acquisitions at a distance, and thereby provide the basis for new business opportunities on the art market (Samdanis 2016). Moreover, they allow galleries to reach new markets and to connect these markets more effectively (Adam 2014;Arora and Vermeylen 2013;Khaire 2015). In general, the Internet has facilitated global visibility of art market participants, making it easier for buyers and collectors to access a broader range of offerings on a global level.…”

“…Auction houses are hosting online auctions, where people can bid from home, and art galleries have recently started creating virtual showrooms where artworks are displayed and offered for sale (Sidorova 2019). Despite these developments, many galleries are still using digital possibilities merely for creating their "digital business cards" (Arora and Vermeylen 2013;Kohle 2014;Samdanis 2016;Sidorova 2019), and have not considered fundamentally changing their business models by incorporating a digital strategy, and selling art online (Adam 2014;McAndrew 2015;Pownall 2017;Samdanis 2016; Van Miegroet et al 2019). Considering that younger generations-the "digital natives"-are increasingly falling into the group of potential art buyers and that they have high expectations regarding immediacy and convenience through digital channels, this may be problematic for galleries.…”

“…The degree of galleries' digital technology adaption contrasts with developments in many industries (Arora and Vermeylen 2013;Kohle 2014;Samdanis 2016;Sidorova 2019), which have experienced a major transformation in their business model since the advent and proliferation of the Internet and digital communication technology (Teece 2010;Verhoef et al 2015). These businesses found it necessary to take advantage of digital channels in order to interact with their various stakeholders and to preserve their prominence and market relevance (Ernst & Young 2012).…”