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Auction Houses & Galleries

It’s well known that over the next 10-15 years there will be a $68 trillion transfer of wealth to the next generation – millennials and Gen Z.

While this is a large transfer, we should also note that this demographic is the largest by size population in history. However, it does mean that brands will need to adapt to the needs of this new audience in order to capitalise on market share.

Preparing for the Next Generation

Buyers are getting younger and looking not just at traditional art, but at collectables as a whole. Now more than ever, there’s greater integration between the luxury world and the art and collectables arena. Today, someone who collects art might also be an avid luxury watch, handbag, or trainer collector.

The traditional lines are becoming blurred and the demand for the ‘right’ experience at a gallery or auction house is changing with peoples’ tastes. For the art world, collectors want to see works of art from women and people of colour as well as different interpretations of art, not just the ‘old’ masters.

The Key Drivers for Art and Collectables Buyers

Research has shown that consumers nowadays are interested in art for different reasons:

Mental Health

Historically this didn’t play a huge role in collectors’ decisions but today people want to feel better, stronger, and inspired from the art and collectables they have around them.

Diversity in Portfolios

The traditional view of ‘value’ is changing with a greater diversity in tastes and backgrounds. People are looking for this in their collections; in other words, a collection that represents its patron. So we are seeing a need for wider artist communities to be elevated.

ESG Responsibility

Collectors as well as the art community are voting with their feet, forcing auction houses to follow suit. Art is now being transported by sea rather than air offering up to a 90% reduction in emissions. While galleries such as Guggenheim in Bilbao are leading the way trying to make their spaces meet net-zero targets.

Opportunities for Digital in the Art & Collectables World

Digital is not just about pushing a particular installation or artist but rather it’s about building a lifetime connection with the gallery or auction house, which can be done by understanding how they want to interact with you.

To this extent we can take a leaf from the retail industry which builds focused and advanced CRM programmes based on their data. The added advantage of using this approach in the art world is the stronger emotional connection, which helps to ingrain the brands in a more meaningful way, driving longer-term benefits.

With increased competition, this will also help your brand to stay current. Someone like the Serpentine no longer has to compete with collections/installations from other galleries, but the online space and new technology does mean that the share of voice is harder to retain. Developing a strong digital programme can help to combat this and indeed, take advantage of the new generational shift.

Talk to us to discover how your brand can take advantage of digital to elevate your business goals. Please get in touch today.