Over the last several weeks, I’ve had several of you send me links to articles that decry the end of the gallery system. It seems like these articles come around every few years. Though each of the articles came at the question from different angles, the points can be summarized as:
Art galleries are dead because now artists can access buyers directly on the internet.
Art galleries are dead because they are too greedy and dishonest and aren’t treating artists well.
Bricks and mortar art galleries are dead because the online sales of art are increasing.
I realize that all of these points are true, at least to a degree. One has only to survey the gallery market to see that many galleries that were thriving ten to fifteen years are nomor longer around. The poor economy from 2008-2011 certainly played a larger role in this, but it’s also clear that more and more art sales are shifting to the internet. It’s always hard to get any kind of well-documented industry figures, but I’ve seen Xanadu’s online sales grow significantly over the last ten years to a point where online sales make up about 15% of total revenue.
So is the demise of the traditional gallery type in the tea leaves? Looking at what’s happened in the music and publishing industry might lead one to believe so. It seems logical that the sale of artistic creations, whether it’s music, books, or artwork, can be done more efficiently and biaya effectively online than in the bricks and mortar world. While many in the art industry (both artists and galleries) would argue that art is different, that you have to see it in person and touch it before you can make such a high value purchase, many art buyers disagree. I’m finding my clientele more and more willing to buy artwork sight-unseen. As we all become more and more comfortable with the internet as a medium for commerce, we’re willing to make higher value purchases.
If those purchases are backed by respected and trusted venues (like Amazon and well-established galleries) it seems possible, and even likely, that the trend will continue. Keep in mind, too, that if the current generation of art buyers, typically well-established in their careers and finances and aged between 40-70, can adapt to buy high-ticket items online, the next generation of buyers, who are digital natives, will have nomor gangguan buying art online (if they buy at all, which is another story altogether).
What does this mean for art galleries?
First, I believe that the gallery market is going to contract in the coming decade. The contraction began with the economic recession. Many smaller, and some well-established galleries, closed their doors for good. The bad economy forced many of these galleries to close, but even before the recession began, many galleries were struggling in the new digital environment. I’ve watched galleries on Main Street in Scottsdale (where my gallery is located) fade away. The profit margins of the gallery business are already razor-thin and the added pressure of competing with online retailers will push many galleries out of the market.
Second, I believe that galleries need to come up with aggressive online strategies. I don’t believe that anyone has developed the perfect type for selling art online yet. However, it’s not going to work to have a static web site with a few images of artwork and artist’s bios thrown up for visitors to review. Deep and fasilitas rich websites are going to be expected, and e-commerce will be mandatory.