acfpu seminar on alternative investments - the art of investing in art
DESCRIPTION
How online is revolutionising the art market and how it affects art investment. Understanding the changing landscape as a new class of art collectors enters the art market with new online and mobile tools while expecting effectiveness and transparency.TRANSCRIPT
Alternative Investment Seminar on Art, 6th September, 2013
Association of Chinese Financial Professionals in UK (ACfPU)
英国华人金融协会
HOW MOBILE AND ONLINE ARE CHANGING THE ART
MARKET
I am CEO at ArtfinderMy name is Jonas Almgren
8 years in New YorkCo-Founder VIP Art Fairand oneartworld.com
15 years in Silicon Valley5 scale-ups: 2 IPOs, 3 acquisitions
Swedish, MSc Computer Science, KTH
HOW MOBILE AND ONLINE ARE CHANGING THE ART
MARKET
WHAT MARKET ?
Gagosian
Hauser & Wirth
Marian Goodman Gallery
L&M Arts
Paula Cooper
High end market
•$30 billion global market
•Tiny group of buyers buying from a tiny group of resellers
•Supply is limited (sometimes artificially)
•It is highly opaque and co-dependent
•It can only be marginally improved by internet
ARTSY
Reproductions market
• $70 billion market
• It is a global market
• It is a mass market
• It has already been disrupted
Middle market
What is the Middle market?•Affordable authentic art the middle and middle-upper class can buy
•$60 billion market
•It is operated by local galleries selling to local buyers
•It has not been disrupted yet
How to approach the Middle market?Sell limited edition prints by high end artists?
How to approach the Middle market?Can we combine authenticity, affordability, and investor value with the rich global choices (including unique paintings and sculptures) afforded by the high end?
Disrupting a market
Pre industrial market
Buyers only buy from the local sellers
Industrial market
Mass production and distribution
Modern market
Efficient marketplace providedby players like Ebay or Etsy
How to approach the Middle market?The Art Marketplace
Trusted Two Sided Marketplace
100 million annual affordable art buyers
1 million independent artists(living from making art)
Efficient global marketWide selectionOnline
High liquidityLittle remnant inventory
A Home for Art OnlineTrusted, Quality, Free Returns
Artfinder TechnologyOnline Website
Curated Marketplace, Beautiful & Responsive DesigniPhone App
In-app Purchases, Notifications
Large Engaged Community
130,000 members
122,000 FB fans
189,000 Pinterest
800 sellers10,000 artworks
• More FB fans than Art.sy, Artspace, Paddle8, and 20x200 combined
• Our FB fans on average engage 150 times with each post
• More than 2 million emails sent every month with high open rates. Notifications sent to mobile app.
The marketbecomes Personal
•Buyers and artists interact
•Artists become marketing powerhouses on their own thanks to social media
•It democratizes the market for artists
•You can be a star by popular demand rather than gatekeeper selection
MOBILE is more than MICROTRANSACTIONS
•A big chunk of our sales happen on mobile apps and we were the first surprised!
•A mobile sale always happens at the right moment, in the right place
•Inhibitions disappear
NOTIFICATIONS are HUGE
•Buyers following their favorite artists
•Buyers following other buyers
•Buyers following taste makers
•Buyers discovering local galleries via apps
•Artists receiving real time feedback from their fan base
How STAR ARTISTS will be born
•The power of gatekeepers will diminish
•The relevance of social network popularity will increase
•What will happen if an artist rises to the high end market? Will he keep operating in this global market with other stock?
How does this affect ART INVESTORS?
•Prices are driven by demand
•It is a liquid market
•Prices can go up or down!ARTIST & ARTWORK
VALUE INCREASE
GATEKEEPERS DEMAND
NEW MODELOLD MODEL