Going Going... Hammer falls with a click

07 April 2015 - 02:00 By Graham Wood

E-commerce, or online shopping, has revolutionised the retail world, but the art market has for some time been tentative about making forays into the online realm. As Ruarc Peffers, a senior art specialist at art auctioneers Strauss & Co, says, there was a strong belief among galleries and art auctioneers that buying art involved a tactile, visceral response to a work, and that art buyers would insist on seeing works first-hand.But as online art auctions have taken off around the world, it has become increasingly clear that is not the case. Peffers cites a report by UK art insurer Hiscox, which found in 2013 that 71% of its survey respondents said they had bought art sight unseen, and "65% of buyers are already extremely or very satisfied with their online art-buying experience".High customer satisfaction levels are a good indication of future growth potential, and the Hiscox report estimated that the online art market would grow by 19% a year.That looks to be game changing. In South Africa, straussartonline.co.za, launched in 2013, is the only "dedicated, exclusively online-only art and antiques auction website", so it's hard to judge what effect the advent of online auctions will have on the art market here.Since Strauss and Co's first online auction, which attracted about 400 bidders, dropping to 290 for their second, Peffers estimates that about 100 new people have participated in each subsequent online auction. Some of those are new, and many are buyers who also go to traditional galleries and auctions.The Hiscox report found that young and first-time art buyers internationally were becoming increasingly likely to make their first purchase online."Among the 20- to 30-year-olds surveyed who had purchased art online, 22% had never bought from a physical gallery or auction before," the report said."It's completely opened up a new market in terms of buyers as well as sellers," says Peffers, "but it's also expanded the variety of service we can offer to our existing clients."Generally at a Strauss & Co auction you won't find works under about R25000- R30000. Online, works worth less than R5000 can be made available for auction in a way that is still viable for the auctioneer.Online auction platforms help to make auctions accessible to people who don't happen to be in Johannesburg or Cape Town, where the major art auctions are held.They also help potential buyers overcome other barriers. "A lot of people are quite intimidated by the whole process," says Peffers. The online platform helps to make auctions easy, transparent and relatively unpressured.Does this signal trouble for the traditional gallery or art auction, in the same way that bookshops, print media and the music industry have been changed by the online tsunami? Peffers sees online art auctions as a complement to traditional art auctions, although he ventures that galleries, too, will soon be under pressure to provide click-and-buy services.Strauss & Co's first online auction of the year begins today, and will run until April 20...

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