Gallery System in Peril

The Artnewspaper has an interesting article entitled Gallery System is Structurally Weak".   I have posted in the past on some of the challenges facing dealers and galleries from art fairs, auctions, auction private sales and the internet, and now the Artnewspaper article supported by recently published report by the non profit dealers Federation Cinoa confirms many gallerist and brick and mortar dealers concerns about the way people are now purchasing fine and decorative art.

The article places much of the blame on art fairs and online sales as they are accessible to the buying public and offers a wide and diverse product range for the collector to select from.

The Artnewspaper reports

“We are in a major systemic shift,” said Szántó. “The expansion of the auction business and art fairs is adding a whole layer above the gallery system as it evolved in the 20th century.” A handful of galleries, including Gagosian, Hauser & Wirth and David Zwirner “have pulled away from the pack, but the question is, where does that leave the regular rank and file gallery?” he added.

Dominique Lévy is sanguine. “The proliferation of fairs is ridiculous. They will strangle each other in the end,” she said. She suggested that the old-fashioned benefits of a gallery may, in fact, be key to their survival. “The secret is to inform new buyers of all the options—and galleries offer a special service, whether it’s taking care of shipping, hanging works, advis­ing on exhibition loans, refram­ing or insurance. Collectors will realise [this],” she said, but added that it “may be later [rather] than sooner”.

Several web-based ventures, including the VIP art fair, Art.sy and Paddle8, have recently emerged. However, dealers remain to be convinced that online business will work for expensive art. “There’s a lot of potential for cheaper works…but nobody is going to spend a huge amount on a work without seeing it,” said the New York-based, secondary market specialist Christophe Van de Weghe. “The comfy price limit is $100,000,” confirmed Alexander Gilkes, the co-founder of Paddle8.

To read tje complete Art Newspapeer article, click HERE.

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