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(Last updated: 13 July 2007)
Trends and opportunities
The market
The USA is a major global market for art accounting for nearly 41 per cent of the $3 billion annual global sales. Following the post-September 11 economic downturn many US galleries experienced a strong decline in revenues. However with the improvement of the US economy over the past year, most galleries are reporting an improvement in sales due to resurgence of interest in the art market – from both corporate and individual buyers.
There is a growing awareness and overall interest in the US art world in acquiring both contemporary and indigenous art in all forms from different countries – including Australia.
Growth in the participation of art collecting and dealing has increased interest in the art market and the way it works. Collectors vary from the young enthusiast who ventures $100 for a painting by an unknown artist, to the deep pocket connoisseur who pays millions for a work by a great master such as Van Gogh. This increase in collecting makes it difficult to distinguish the boundaries of art auctioneers and galleries as an increasing number of individual collectors buy and sell directly through consumer-to-consumer Internet trading platforms and at collectible shows and conventions.
Consumers of art can be segmented into buyers and collectors. Art buyers are defined as wanting to purchase art that matches, for example, the drapes, seat covers, or wall, or simply to fill a particular empty space. Art collectors have more objectives than art buyers, they look to art as one means of enhancing their lifestyle. Most dealers/galleries focus on a single art category and rarely have multiple category presence.
Opportunities
In the US, a strong interest in Australian visual art is evident among curators of private and corporate collections and high net worth individual collectors. Major indigenous Australian collections are held in New York, California, Virginia and Texas as well as substantial individual and corporate collections.
Competitive environment
The fine art market in the US is highly competitive, complex and fragmented with over 10,000 artists, studios, galleries, consultants, advisors, dealers, brokers, auction houses and fine art catalogues. |