Local contexts as activation mechanisms of market development: contemporary art in emerging markets

Abstract

Local contexts as activation mechanisms of market development: contemporary art in emerging markets Komarova, N.; Velthuis, O.J.M. General rightsIt is not permitted to download or to forward/distribute the text or part of it without the consent of the author(s) and/or copyright holder(s), other than for strictly personal, individual use, unless the work is under an open content license (like Creative Commons). Disclaimer/Complaints regulationsIf you believe that digital publication of certain material infringes any of your rights or (privacy) interests, please let the Library know, stating your reasons. In case of a legitimate complaint, the Library will make the material inaccessible and/or remove it from the website. Please Ask the Library: http://uba.uva.nl/en/contact, or a letter to: Library of the University of Amsterdam, Secretariat, Singel 425, 1012 WP Amsterdam, The Netherlands. You will be contacted as soon as possible. The paper studies how local contexts contribute to the emergence of markets. In particular, it explains how potential entrepreneurs are motivated to become active in establishing new markets. Empirically, the focus is on contemporary art markets in two emerging countries: India and Russia. The paper draws upon qualitative interviews with 65 contemporary art dealers conducted in New Delhi, Mumbai, Moscow and Saint Petersburg. We show how different socio-cultural contexts function as activation mechanisms: in India, family backgrounds predominantly structure the decision-making processes, among others through the economic, social and cultural capital which these families provide. In Russia, by contrast, such family background is non-existent. Instead, the socio-economic turmoil of 1990s and 2000s as well as the strong involvement of the state function as activation mechanisms. We suggest that these different activation mechanisms contribute to explaining the diverging market performance in both countries.

Sustainable Management of Contemporary Art Galleries: A Delphi Survey for the Spanish Art Market

“…Only once this belief is produced and an artist establishes a reputation are art dealers able to sell their work and raise its price [28]. In short, art galleries perform an essential function both for the valuation and intermediation of art [20].…”

“…The most important factor for gallery owners in terms of their relations with their clients is the promotion of culture which is achieved, in their eyes, by their customers purchasing works of art. Their motivations go beyond a mere profit orientation [20]. The aim is to make the act of buying art something normal and routine, so they usually give their customers many purchasing options, although some of them do not benefit the gallery from an economic point of view, such as delays in customer payments, which can result in growth and expansion issues for some galleries, especially smaller ones.…”

“…In view of the aforementioned aspects and following the argument used by [20], which shows how the local and socio-cultural context determines market development, highlighting the active role of intermediaries in this process, this paper analyzes the situation of the main mediator in the Spanish contemporary art market: art galleries. The objective is two-fold: firstly, to delve into the nature of this intermediary's relations with the other agents in the contemporary art market and, secondly, to analyze the business formulas of these organizations as a way to redirect their practices towards sustainable management that will secure their survival in the market.…”

Ups and downs of art commerce: narratives of “crisis” in the contemporary art markets of Russia and India

“…Many, including novice art dealers, took this rupture as a possibility to start business from scratch (see more in Komarova and Velthuis 2017). The new government released control over private commerce for art (that was previously forbidden) and over legitimate artistic styles (that were previously censored via an elaborate system of official art organizations-see more in Kharchenkova et al 2015;Yankovskaya and Mitchell 2006).…”

“…In fact, the oldest of the still functioning private art galleries (Dhoomimal Art Gallery in New Delhi) opened in 1936 and the most celebrated art movement in the current art market-Progressive Artists' Group-was established in 1947 (Brown 2009). Many of the current art market actors are at least the second generation of art connoisseurs from established elite families (see more in Komarova and Velthuis 2017;Poulsen 2012;Joshi 1985). Economic reforms of 1991 opened up the country's economy (Kaushik 1997) and put to an end the long lasting spirit of disavowal of conspicuous consumption (Khaire 2011).…”