Last updated on September 9th, 2024 at 03:32 pm
Every year, multinational investment bank UBS and the largest international art fair platform Art Basel come together to publish a report on the global art market. Overall valuations of the art market, global and regional sales performances from various channels such as auctions, art fairs, dealers etcetera are few of many statistics reported in this document.
It is rather interesting to notice that although art practice may be a deeply nonfinancial, poignant and a subjective experience, the consequence of it is quite opposite. Taking an artist’s work to the art market and building financial value is a long and tedious process often performed by important actors in the market viz. galleries, auction houses, art dealers, museums and so on. These actors help develop the emotional as well as financial beauty in the eyes of the beholder.
A fundamental question here is what role do each actor play in developing the artist’s brand and how does it impact the financial value of an artist’s work? “The traditional distinction in the art market is categorized into primary and secondary markets. Although in recent years, the boundaries between the two markets have become somewhat blurred in the process of cultivating an artist’s brand. The primary influence mainly comes from galleries and museum curators.” explains June Hsu, Co-Head of Modern and Contemporary Art Department of Hong Kong’s Poly Auctions.
It Begins with the Artist
Brent Estabrook is an American artist known for his large-scale oil paintings of stuffed animals. Represented by London based Maddox gallery and Dubai’s Belvedere Art Space, Estabrook explains how he has created his niche. “I believe artists are their own biggest brand builders. For instance, I’m known for my upside down teddy bear face logo called ‘Smiles,’ which has become a symbol for going against the grain and following your true passions. This, along with my consistent use of specific colors like ‘Plushie Pink’ and ‘Mint Green,’ helps my fans recognize my work and creates a strong brand identity.
An important question artists should ask themselves, and that I asked myself during the creation of “Smiles”, is, ‘What do I ultimately stand for and want to be known for in 5 or 10 years? What message do I want to put out into the world?’ This reflection is key to developing a brand that truly resonates with who you are as an artist. Branding came before my work with galleries. Artists need to be able to communicate who they are and what they stand for with their branding. When I work with galleries, they are supporting my brand as much as me as an artist. They know what I stand for and want to be involved with it. The price of my work continues to increase as demand increases, and the demand increases because more and more people want to be involved with my brand.
It’s important for artists to see what their collectors and audience respond to. Understanding your brand makes it easier to collaborate symbiotically with galleries, brands, auction houses, and collectors. It’s about having a clear vision of who you want to become and aligning with stakeholders who support that vision,” says Estabrook.
Influence of the Primary and Secondary Markets
Art sales is always a tricky affair often affected by a list of external factors. For example, in 2022-2023, HNW’s concerns on wealth creation, stability and sustainability due to global financial, social and political changes have affected their willingness to make discretionary purchases or focus on collections. On the other hand, the 2024 art market is also prepping up for more than 140 art fairs and exhibitions, and numerous other auctions where thousands of artists and artworks will be represented and sold. Where will the artist’s brand play a role in this?
“The art market has evolved rapidly in the past decade,” explains Yaji Huang, Founder and Director of Taiwan based gallery Each Modern, “However, the key rule for an artist’s long-term career is still recognition in art history, influential collections, and institutions. The most crucial aspect of branding for an artist within a gallery context is the accurate interpretation of the artist and their works. Various branding strategies can lead to quick success for an artist, such as Instagram popularity, collaborations with fashion brands, or high auction records. These strategies are useful tools at different stages of an artist’s career.”
While the branding exercises differ in primary and secondary markets, they are interdependent in creating an artist’s demand among collectors. In the primary market, “consistent exposure with a cohesive concept series through a reputable gallery is vital. Visual branding is not essential; instead, the conceptual practice strengthens recognition from established collectors and institutions,” clarifies Yaji Huang, “Lin YiHsuan, a Taiwan-born artist now residing in Sao Paulo, has a distinct artistic vision, regularly hosting his solo shows with us biennially. His journey in abstract art starts with translating landscapes into expressive lines, evolving into reinterpretations of ancient Chinese paintings. Infused with colours inspired by Latin America, his unique style is distinguished, while it is his concept and innovative approach of a new form of abstraction captivating audiences.”
“As an auction house that exists in the secondary market, our role in the artist’s brand is more focused on presenting the outcome. Firstly, auction results are quantifiable, and the bidding process is also publicly displayed. This allows transparent information to be provided and viewed by the public. Therefore, the auction records at each stage directly influences the market’s confidence in the artist. In simpler terms, the auction results will directly impact the sales momentum in the primary market,” explains June Hsu.
The Collector’s Takeaway
For a collector, it is quite difficult to manoeuvre the art scenario among all the actors and zero-in on the artist one must invest. It’s crucial to understand that “the primary market has its own rules regarding periodic adjustments for artists’ prices. It involves the artist’s career planning, the number of solo exhibitions per year, and the gallery’s arrangement for the artist – which are a few factors to consider. Therefore, the results of auctions directly influence the market and thus affect collectors’ willingness to buy and sell, rather than merely being about numbers. For example, artists like Liu Xiaohui, Chen Ke, and Wei Jia performed well overall in the secondary market last year – which will attract everyone’s attention to their exhibitions,” says June Hsu.
But most importantly, as Yaji Huang rightly elucidates, “While some branding strategies can lead to short-term success, consistency might be missing for certain artists. Buyers should consider art as a long-term, illiquid asset rather than for short-term flipping. Only good art should receive higher appreciation over time.”
Leave a Reply