LAPADA Member Survey

The LAPADA, the UK's Largest Trade Association for Professional Art and Antiques Dealers has published its latest membership survey and there is some interesting information in the results.  The main point seems to be the increase in online sale, now being the third highest behind gallery sales and UK art fairs. Gallery sales account for 44% of sales, UK art fairs is 20% and online sales are at 19%.  What is also interesting is that 21% of the dealers said they had no online activity.  I would think that number would be trending downward. Also, 66% of the dealers surveyed reported buying inventory online as well.


Other issues noted in the survey include concerns about staying competitive in the global economy and also the UK's artist resale rights levies.

 The LAPADA reports

The LAPADA Annual Membership Survey has shown that despite a highly challenging period, dealers are optimistic that the outlook for the art market is improving. 2011 proved a difficult year for many dealers, particularly those focused on the middle to lower priced end of the market. While the top end of the art and antiques trade recovered well over 2010 and 2011, this middle market continued to struggle with a much slower bounce back in demand from the dip of 2009. The share of dealers turning over less than £500,000 per annum rose 3% year-on-year and those earning less than £100,000 rose 4%. However, at the higher end, there was a significant improvement in performance: in 2011 a total of 24% of members had sales in excess of £1 million versus only 17% in 2010. The majority of LAPADA’s members were optimistic about the coming year also, with 80% predicting stable or higher sales in 2012 (versus 70% of dealers worldwide)1.

Despite the demanding economic context for small businesses, LAPADA dealers have remained profitable on the whole. While margins for art and antique dealers globally fell more than 11% since 2009, LAPADA members reported a drop of only 2% over the same period and predicted profitability to increase again in 2012. Again there are fears however that the market is becoming increasingly polarised, and while the top tier of the dealers’ market has remained financially successful over the last two years, the lower and middle ends have suffered more in the fall out from the recession, and were seen as generally more fragile with many continuing to struggle as economic uncertainty dampens demand at the lower end.

Despite most dealers having small, local premises, in 2011 LAPADA dealers made 28% of their sales to overseas buyers, and the US is still by far the most important source of buyers outside the UK. To maintain their competitiveness, many dealers have had to pursue an increasingly internationally focused business model, and 10% of members now conduct 90% or more of their business overseas.

Source: LAPADA