Magnus Resch discusses the challenges facing the art market, emphasizing the need for transparency to improve sales and accessibility for both artists and buyers. He highlights the decline in gallery revenues, the concentration of power among a few players, and introduces an app designed to facilitate art purchases.
Magnus Resch opens with a candid confession about the art market's dire condition. Contrary to popular belief, the art market is struggling. Galleries are closing, artists are unable to sustain their practices, and the market is dominated by a select few who dictate what is showcased in museums. Resch, who started a gallery at the age of 20 and holds a PhD in the art market, now teaches art management at Columbia University and runs a company aimed at reforming the industry.
Resch presents alarming statistics to illustrate the market's decline. Between 2007 and 2017, total revenue in the art world decreased by 3%. Despite the perception of a booming market, the reality is stark: the combined revenue of all players in the art world is around $60 billion, comparable to that of a major corporation like Dell. Furthermore, 55% of galleries earn less than $200,000 annually, with half of that revenue going directly to artists. This leaves galleries with minimal income to cover operational costs, leading to a significant number of them operating at a loss.
Resch emphasizes the importance of conversion rates in the art market, drawing parallels to the tech industry. Despite increasing visitor numbers at art fairs and museums, actual sales are declining. Between 2007 and 2017, the number of artworks sold dropped by 20%, even as the number of millionaires doubled. The typical buyer profile remains narrow: predominantly older, wealthy, white males. This concentration of buyers and artists leads to a lack of diversity in the art market.
While record-breaking sales, such as a Da Vinci painting fetching over $450 million, suggest a thriving market, Resch argues that these instances mask a larger issue. The art world is bifurcated into a small elite that drives high prices and a struggling majority. For example, 90% of solo exhibitions at the Guggenheim from 2007 to 2013 featured artists from just five galleries, highlighting the lack of representation and opportunity for emerging artists.
Resch advocates for transparency as a solution to the art market's problems. He argues that the current buying process is convoluted and intimidating, particularly for younger generations. Many potential buyers feel uncomfortable in galleries, where the atmosphere can be unwelcoming and information about artworks is often withheld. To address this, Resch has developed an app that allows users to take a photo of an artwork and instantly access information about it, including pricing from galleries and auction houses.
The app aims to democratize access to art by providing essential information at users' fingertips. Resch envisions a future where galleries are vibrant spaces filled with conversation and engagement, reminiscent of historical galleries that welcomed diverse audiences. He believes that by making the buying process more transparent and accessible, the art market can attract new buyers and foster a more inclusive environment.
During a Q&A session, Resch offers advice to emerging artists and dealers. He emphasizes the importance of networking and finding a place within the small circle of successful individuals in the art world. He also reiterates that the quality of art is not declining; rather, the challenge lies in converting interest into sales. Transparency in pricing and the buying process is crucial for improving conversion rates.
Magnus Resch's insights shed light on the pressing issues within the art market and propose a path forward through transparency and accessibility. By leveraging technology and fostering a more inclusive environment, the art world can revitalize itself and ensure that art remains a vibrant part of society, accessible to all.
