It is perfectly normal to watch auction previews in the offline space of the auction house. However, throughout the history of the market, the tentacles of auction companies have long been not limited to the secondary market, but also lined up in the primary market. Back in 1996, Sotheby's bought André Emmerich; in 2006, it acquired Noortman Master Paintings in London; and in 2011, Sotheby's set up its own gallery, S2 Gallery. On the other hand, Christie's took over the Haunch of Venison in 2007 until it closed the gallery space in 2013...
In addition to the established auction companies, many domestic auction houses are also more or less involved in the primary market: some directly cooperate with galleries to solo exhibitions or auctions, some hold private negotiations and exhibitions in their own offline spaces, and some use galleries as offices of auction houses in other cities...
Why should auction houses come to the primary market for a piece of the pie? Is business in the secondary market not as good as in the primary market? Will this rob the gallery of some of its business? We interviewed several art market veterans, including auction house practitioners, to hear their views.
Shared space or owned space
If it were not for the recurrence of the epidemic in Beijing, Huayi International Beijing Space would have brought a solo exhibition of artist Yan Lei in August.
This is not the first time that Huayi International Beijing Space has held an exhibition other than an auction preview, after Whichi has cooperated with The Contemporary Tang Art Center to curate the "Future +: Chen Danqing, Qin Qi, Zhao Zhao Special" exhibition and auction; in September 2020, KennaXu Gallery in Shenzhen also collaborated with Huayi International to hold a special exhibition "Changyu Paris Concept - Wang Jiyuan Treasure Album".
Liu Jianwen's Shanghai solo exhibition "Full Collection" is also a private exhibition brought by Christie's Shanghai Art Space, 2019
Jiang Mingyang
Director of the International Academic Research Department
On the other hand, the offline preview of Cuppar's online auction in July was also selected in the gallery: the King & Wood Mallesons Art Center. It is reported that the offline preview of the online night auction in August will continue to be held at the King & Wood Mallesons Art Center. Just a day ago, Kaipai announced another news: a new gallery from Shenzhen, In case Space, will become the chief representative office of Kaipai International Shenzhen. In the view of Jiang Mingyang, director of the International Academic Research Department of Kaipai, "the business of the auction house has not shifted to the primary market, which is the self-driven enrichment of the auction house itself to cope with market changes." How to dig deeper into the value of lots, how to broaden the way of value presentation and dissemination more widely, and how to comprehensively enhance the collector's purchase experience are all problems we have been thinking about. ”
The site of the international July online auction preview, located at the King & Wood Mallesons Art Center, 2021
Li Xiaowen
Artistic Director of Modern and Contemporary Art Department of Beijing Yongle International Auction Co., Ltd
In Yongle Art Space, the "South Wind Charming - Chen Chunmu and LUGAS SYLLABOS Double Solo Exhibition" is being staged. Yongle Art Space has curated Wu Guanzhong Cui Ruzhuo Ink Painting Exhibition, Pu Xin Xi Calligraphy and Painting Exhibition, Liu Dan Works Exhibition and other exhibitions, in the words of Li Xiaowen, artistic director of the Modern and Contemporary Art Department of Beijing Yongle International Auction Co., Ltd., Yongle Art Space is "a window to display brand culture and promote the diversified development of its own business." The functions seem to overlap with the gallery, but the original intentions are different and do not interfere with each other. On the contrary, through the promotion of artists in the secondary market, it is more able to promote the circulation and appreciation of artists in the primary market. ”
"Labyrinth of Labyrinths: Exhibition of Liu Dan's Works", Yongle Art Space, 2020
"South Wind Seduction- Chen Chunmu and LUGAS SYLLABOS Double Solo Exhibition", Yongle Art Space, 2021
If venue collaboration is only a primary way for auction companies to link up with the primary market, auction houses with their own art spaces/galleries are the next step in their approach. For example, Sotheby's S2 Gallery has curated a number of artist exhibitions; Christie's Shanghai Art Space has brought "There is great beauty in heaven and earth - Jiang Xun's artistic life", and trendy artist Michael Lau's "All Received!" Fulgas invited Gary Card, an internationally renowned set designer crossover curator, to curate at Phillips London Art Space, and to bring a sale by artist Hebru Brantley at Bloom Gallery...
"Future +: Chen Danqing, Qin Qi, Zhao Zhao" exhibition site cooperated by Huayi International and Tang Dynasty Art Center, 2020
Huayi International Auction hosts "Changyu Paris Concept - Wang Jiyuan Treasure Album Special Exhibition Shenzhen Station", KennaXu Gallery, 2020
Michelle
Founder of Shanghai New Frontier Art Space & Auction House,
Co-founder of Yipai Art
These exhibitions are not auction previews, and are closer in nature to primary market projects, which also suggests that the boundaries of primary and secondary markets are blurring and blending. This also confirms the views of many guests: for example, Michelle, founder of Shanghai Xinjinjie Art Space & Auction House and co-founder of Yipai Art, said: "The original intention of the primary and secondary markets may be the same, but the focus is different, the practices are different, and the auction houses have not been able to achieve the alternative role of cultivating artists in the primary market for a while." However, the gradual blurring of the primary and secondary markets is a clear trend. ”
Exhibition site of the new Jinjie Art Space
Luo Jingwen
Director of Business Development, Poly Hong Kong Art Space
In contrast, in the primary market, galleries involved in the auction industry are not new, such as Lévy Gorvy Is equally important in the primary and secondary markets, and even a larger proportion of secondary market business; in 2020, Aquivila Gallery, Gagosian Gallery, and Pace Gallery formed a three-big alliance of galleries, preemptively winning the opportunity to auction the art treasures of the late American financier Donald B. Marron (1934-2019), It also confirms the words of Luo Jingwen, director of business development at Poly Hong Kong Art Space: "At present, the business of auction houses and galleries overlaps, diverges and merges, and there will be unlimited possibilities. ”
"Ho Do Ling: Stubborn Art", Poly Hong Kong Art Space, 2018
Take private negotiation as the core gameplay
If you happen to be passing by Christie's Shanghai Art Space on the Bund on the last three days (August 20-22), you can see that the "The House of Luxury" private exhibition is being held inside. Private negotiation is also the most important way for auction houses to enhance transactions in addition to public auctions.
Christie's Shanghai Art Space is located at Ambé & Co. in Shanghai
"The House of Luxury" Private Exhibition, Christie's Shanghai Art Space, 2021
Deer Leg Gallery (2002-2013) Street View, London, 2009. Deer Leg Gallery was acquired by Christie's auction in 2007 and closed in 2013
Zhang Wenjia
Director of Phiss China
According to Official Christie's data, Christie's global private negotiations in 2020 were nearly £1 billion, an increase of 57% over 2019; data from Phillips' private negotiations showed that from January to July 2021, the total turnover of private negotiations increased by 107% compared with the same period in 2019. Zhang Wenjia, director of Fxs China, believes that private negotiations and auction business complement each other, "to enable auction houses to provide customers with one-stop collection services in addition to auctions, and is not a new type of business for auction houses." ”
Phillips London Space Exhibition "HYSTERICAL", created by Gary Card, internationally renowned set designer crossover curator, 2019
Fulness partnered with Bloom Gallery to bring the show "SOLUS BY HEBRU BRANTLEY" by magician Hebru Brantley, 2021
A sister of JiuxianQiao
Columnist for Hi Art
The auction house's private business includes secondary private transactions of works auctioned, seeking specific artworks for clients, holding exhibitions, etc. A sister of Jiuxianqiao said: "After the works auctioned by Sotheby's and Christie's were auctioned, they had 30 days of private negotiation time. It's not that the auction house's business has shifted to the primary market, but that it's all taken over. The existence of auction galleries is an extension of the private negotiation business, just to have one more form of transaction that is different from auction. Why not make money? Do you practice Buddhism? ”
2021 Hong Kong Sotheby's Spring Auction scene
2021 Christie's Hong Kong Spring Auction scene
Wu Jin
Veteran art dealer
Since the traditional auction is concentrated in the spring and autumn, the time span is large, so offline exhibitions and private negotiations can also increase customer stickiness and expand the influence. However, there is also a difference between auction house exhibitions and gallery exhibitions, and Wu Jin, a senior art dealer, said: "This kind of business of auction houses sometimes has to be carried out through traditional galleries, because the private negotiation of auction houses does not represent long-term agency with artists, but only a temporary cooperation." For example, artists such as Ding Yi, Yin Chaoyang and Huang Yuxing in Christie's "The House of Luxury" private exhibition have important gallery agents and promotions in the primary market, and take the primary market as the active home.
"Under the Sky of Paris: The Pioneering Road of Artists Traveling to France in the Twentieth Century", Shanghai Special Exhibition, Hosted by Huayi International, Yue 190 Space, 2021
Li Wei
Director of Modern and Contemporary Art Department of Hanhai, Beijing
According to Li Wei, director of the Department of Modern and Contemporary Art of Hanhai in Beijing, "private negotiation is a parallel business with the auction company, and normally another institution associated with the auction company is running"; but at present, the private negotiation business is still concentrated in international auction houses. A mainland auction practitioner, who did not want to be named, said: "Auction houses develop primary market business, first of all, based on the needs of customers, but it is not convenient to find galleries, so auction houses can start their work in this way." However, from the perspective of China's auction law, domestic auction houses do not have private negotiation qualifications, such business is very limited, and it is impossible to talk about grabbing business with galleries. "The secondary market is the "verification" stage of the entire art market, and all the market consensus established in the primary market ultimately requires the public verification of the secondary market to complete the cycle.
"Talking Heads" Group Exhibition of Contemporary Art, co-organized by China Arts International (Hong Kong) and The Spectacle Group, 2021
A 1.5-level market between galleries and auction houses
Luo Jingwen, Business Development Director of Poly Hong Kong Art Space, compares Poly Hong Kong Art Space to a "1.5 level market": "It is equivalent to extending and expanding the auction business, and we are completely in conflict with the galleries representing artists in the primary market, their task is to support and promote artists, and our responsibility is to use this platform to better and faster assist and cooperate, and to simultaneously expose our collectors to the real-time information and information of contemporary art." Zhou Chunya, who has held exhibitions at Poly Hong Kong Art Space, does not have a clear and fixed contracted gallery in the primary market, but it still does not affect its status as an "evergreen tree" in the secondary market.
"Chun Bud - Chow Chun Nha's Works Hong Kong Island Collection Exhibition", Poly Hong Kong Art Space, 2018
Chen Jie
Senior Business Manager, Poly Modern and Contemporary Art Department, Beijing
Although also directly market-oriented, galleries, in addition to selling their works, are also responsible for cultivating and discovering rising stars, while auction houses focus on the fruits of success for "successful artists". Chen Jie, senior business manager of The Department of Modern and Contemporary Art of Beijing Poly, pointed out that the auction house plans exhibitions and does offline private negotiations, but in the same way as the gallery in terms of sales. "Holding such events will also have a promotional effect on artists, but the original intention is to provide collectors with more services." Just like many galleries will accept collectors' commissions to resell works and make secondary transactions. However, this is a complement to the service and cannot replace the main function. ”
"The Sound of the Sun" jointly organized by Kaipai and The True Treasure Art Foundation, True Treasure Foundation, 2021
So, will the primary market business of the auction house rob the gallery business? Jiuxianqiao said: "Although they are all called galleries, the galleries of the auction house are quite different from ordinary galleries. Paihang Gallery does not cultivate artists, and rarely signs with artists for a long time, and rarely repeatedly launches the same artist. The auction house has a competitive relationship with some dearers, and opening a gallery will not make this competition more tense. Some of the Paihang gallery's exhibitions also have the effect of pulling relationships and currying favor with VIP customers. For example, do a solo exhibition of a celebrity, engage in social networking, and of course, there are exhibitions that are more similar to first-class galleries. But the auction house itself is not more advantageous than a type of gallery, selling better. "Although the breakthrough in the secondary market can reversely consolidate the position of artists in the primary market, it will not derail the pricing rules of the primary market: for example, whether it is the older generation of "heavenly kings" Zhang Xiaogang, Zeng Fanzhi, Liu Ye, Zhou Chunya, or the newly popular Xiaosheng Huang Yuxing and Hao Liang, their works have long been close to or exceed the 10 million yuan mark in the secondary market; in the primary market, their normal-sized works are in the range of more than 100,000 or millions.
Special exhibition "The Power of Writing" hosted by The Beginning of Filming, 2021
Huang Xuan
General Manager of Modern and Contemporary Art Department of Huayi International
This also confirms the view of Huang Xuan, general manager of the modern and contemporary art department of Huayi International: "The auction house mainly starts from the needs of customers, and the work of the gallery is more around the aesthetic stance of the gallery owner. For auction houses, focusing on cultivating the secondary market and excavating the value behind the core works is still the focus of work, while the involvement in the primary market is a measure to assist, supplement and maintain its own vitality. "The nature of the auction house as a commercial platform is destined not to be limited to a certain kind of interest and focus on a certain clue, but to choose works of art that are mature in the primary market, widely distributed by collectors, and have a collective consensus within a certain range."
Li Li
Co-founder of ArtAlpha Art Alpha
At the same time, Li Li, co-founder of ArtAlpha Art Alpha, also added: "Many auction houses cooperate with galleries in the exhibition of primary market artists; some artists themselves are agent models, and without gallery agency, the auction house's exhibition acts as a gallery exhibition." So in fact, the primary and secondary markets are inextricably linked. "Some artists' works are difficult to find in the primary market, and even the collectors queuing up in the gallery have reached dozens or even hundreds of digits, at which time the secondary market has become a good choice."
Li Su Bridge
collector
The surging secondary market is always facing challenges, how to tap the market stars, open up new businesses, how to establish new cooperative relations with other links in the art ecology, will always be the direction of exploration of auction companies. And carrying out primary market business is one of the ways. As collector Li Suqiao put it: "The breaking of the tradition of the industry is the trend of the industry's development, the high monopoly and polarization of the market are very common in other industries; in this regard, the behavior of galleries and auction houses seems to have been quite conservative, and change does not necessarily mean fairness, especially for small and medium-sized galleries, but for the industry as a whole, it may be a good thing." ”
(Article from Hi Art)
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