Who moved their cheese?

Absrtact: For the auction industry, Sotheby's and Christie's are undoubtedly the absolute overlord, and the infighting between the two big auction giants is a long-standing one. However, in today's art market, the focus of competition is no longer limited to the rivalry between the two, as Asia

For the auction industry, Sotheby's, Christie's is definitely the absolute overlord, and the rivalry between the two big auction giants is a long-standing one. However, in today's art market, the focus of competition is no longer limited to the rivalry between the two, with the rapid rise of Asian auction houses, Sotheby's, Christie's global market share is being constantly "eroded".

At the same time, the great potential of the Chinese art market has also allowed Sotheby's and Christie's to sniff out business opportunities, and has already extended its tentacles from Hong Kong to the mainland, such as Sotheby's (Beijing) and Christie's (Shanghai). In the near future, Sotheby's and Christie's issued a 2014-first-half performance report, emphasizing the strategic position of the Asian market. So, how should we look at the changes in the market pattern?

Xiaixiaodong, deputy general manager of the auction, said in an interview with reporters, "whether from the quality, quantity or size of the works, the domestic auction companies have a great development, which is related to China's economic environment, wealth groups and the increase of the art collection group has a great relationship, and these constitute the entire art market Foundation, Both Sotheby's, Christie's and China's auction houses benefit. The reason why market share has changed so much is the rapid rise of Chinese auction companies.

Who moved their cheese?

As the world's oldest two major auction houses, Sotheby's, Christie's is a well-deserved industry legend, more than 200 years of history baptism and change, they firmly occupy the global auction industry hegemony, even today still maintain a vigorous market vitality.

According to Christie's and Sotheby's 2014 semiannual report, as of June 30, the first half of Christie's turnover increased by 12% to 2.69 billion pounds, and new buyers from all over the world were constantly admitted, accounting for 24% of the total, and Sotheby's was not outdone, with a total turnover of 22% per cent in the first half of 2014. Sotheby's Asian auctions amounted to HK $3.82 billion, of the top ten Asian auction markets, Sotheby's accounted for six of the total, making three deals of more than HK $100 million, and set a record of more than 20 world auctions, with the highest visibility in the colorful chicken cylinder.

However, such dominance is not hard to shake. According to incomplete statistics, Sotheby's and Christie's global market share fell from 73% to 47%, only more than 10 years. During this period, we can see the rising of the new auction power, such as the Poly auction founded in 2005, has leaped into the third place in the world in just seven or eight years, followed by China's Jia de, and the auction in Beijing. Although not in the volume of business with Sotheby's, Christie's rival, but has posed a big challenge to it, and the "new force" of the battle has just begun.

In this respect, Xiaixiaodong said in an interview with reporters, "whether from the quality of the works, or the size of the domestic auction companies have a very large development, which with China's economic environment, wealth groups and the increase of the art collection has a great relationship, and these constitute the basis of the entire market, whether Sotheby's, Christie's or Chinese auction houses can benefit from it. Why the market share of this change, mainly the rapid rise of domestic companies.

Asian markets become the focus of contention

The 2013 Global Art Auction market report, published by Artprice, a leading art market information company, said 2013 global art auction turnover rose 13% to $12.35 billion. Among them, China and the United States accounted for 2/3, China to 4.08 billion U.S. dollars for the highest number of art auctions in the country, the United States with 4.02 billion U.S. dollars second.

The art market has always been the stage of capital chasing, and the temptation of China's huge market is enough to be an endless drive for Sotheby's and Christie's in the Chinese market. In this respect, Xiaixiaodong to reporters that Sotheby's, Christie's move is in line with the current international economic situation in the clear strategic business behavior, China's economy in the global economic background is still very prominent, although the growth rate has declined in recent years, but the volume of China's economy in the world economic structure occupies an important position. In this context, because of the wealth effect or aesthetic effect of attraction, some of the art market does not understand the individuals, entrepreneurs began to enter the market, from this point of view, the potential of Chinese art consumption is still very large. Specific performance in the auction, is the number of new buyers continue to increase, on the film to maintain a relatively high volume, and these factors will eventually achieve market performance increase.

"For Sotheby's, Christie's, they have always attached great importance to the Chinese market because the purchasing power of Chinese buyers is increasing." First of all, this is the refraction of the Chinese economy in the global art market, and secondly, the expansion of China's cultural influence is bound to be reflected in domestic entrepreneurs and collectors of the national culture of consumption or collection. It can be said that this is not only the domestic large collection group pattern, economic strength growth, cultural consumption concept changes results, but also Sotheby's, Christie's efforts to operate the results. "Xiaixiaodong said.

In the past two years, Sotheby's and Christie's have been expanding in the mainland's art market. Beijing Rongbao Auction general manager Liu Xiangyong not agree with this, he pointed out that, from the Chinese national economy in total and net worth of people, the development of Chinese art market is far from enough. Sotheby's and Christie's are veteran auction houses with strong market development capabilities. At the same time, the Chinese art market is in the initial stage, if the restriction of competition will restrict the vitality of the market, the common big Chinese art market, this is a win-benefit relationship.

How important is online bidding

The art market has not been married to the internet for a long time, but in just a few years online auctions have even become a sales position for millions of dollars. As early as 2006, Christie's had set up an online real time bidding service Christie ' s live, and achieved remarkable results.

In the first half of 2013, Christie's turnover reached 8.7 million pounds, an increase of 71% over a year earlier, while Sotheby's online bidders accounted for 17% of the total in 2013, up from 36% per cent in 2013. Sotheby's announced it will work with ebay again to expand its 145 million online subscribers.

So is this a good trend for auction companies? Xiaixiaodong to reporters that the auction company is a platform for the Tibetan family, with the maintenance of old customers, the need to develop new customers, auction house and network platform to attract new customer groups, but also to increase the ebay trading plate, it can be said that this is a winning cooperation. "But it is not necessarily the case for future auction houses, and I can only say that working with big brands is not a useful attempt." Xiaixiaodong added.

For Sotheby's, Christie's, the role and performance of online auctions are exciting, but are they suitable for China's auction industry? Liu Xiangyong is not optimistic about this, he pointed out that online auction is a good attempt, but only a traditional auction of a supplement, will not become the main direction. Whether the actual traditional auction, or virtual online transactions, should be carried out under the integrity system, the auction industry is the need for high-end integrity of the industry, but still lack of security, because the most fundamental integrity of the system has not been established.