How online and mobile will change the art market. Slides from LBS conference on art investing, 2 May, 2013.

1. HOW MOBILE AND ONLINE
ARE CHANGING THE ART
MARKET

2. I am CEO at Artfinder
My name is Jonas Almgren

3. 8 years in New York
Co-Founder VIP Art Fair
and oneartworld.com
15 years in Silicon Valley
5 scale-ups: 2 IPOs, 3 acquisitions
Swedish, MSc Computer Science, KTH

4. HOW MOBILE AND ONLINE
ARE CHANGING THE ART
MARKET

5. WHAT MARKET ?

6. Gagosian
Hauser & Wirth
Marian Goodman Gallery
L&M Arts
Paula Cooper

7. $60 Billion
(Including antiques)

8. 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 higly opaque and co-dependent
•It can only be marginally improved by
internet
ARTSY

9. Reproductions market
• $70 billion market
• It is a global market
• It is a mass market
• It has already been disrupted

10. Middle market

11. 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
•The secondary market is almost non
existent
•It is growing. Buyers of reproductions
want unique pieces
•It has not been disrupted yet

12. Mass market for
authentic art

13. How to approach the
Middle market?
Sell high end artists?

14. How to approach the
Middle market?
Sell high end artists?
High-end artists have
little recognition in the
middle market

15. How to approach the
Middle market?
Sell high end artists?
Buyers don't find the
more conceptual art
produced by the high-end
artists appealing

16. How to approach the
Middle market?
Sell high end artists?
Limited edition prints?
Middle market buyers are
looking for uniques

17. How to approach the
Middle market?
Up the level of reproductions?

18. How to approach the
Middle market?
Up the level of reproductions?
Middle market buyers are
looking for authentic art, for
the “artist’s hand”… but this
that can’t be found in
reproductions and gift items

19. How Disruption works

20. Pre industrial market
Buyers only buy from the local sellers

21. Industrial market
Mass production and distribution

22. Modern market
Efficient marketplace provided
by players like Ebay or Etsy

25. How the Mass market
for authentic art is
being Disrupted

26. The market
becomes Personal
•Buyers and artists interact
•Artists become marketing
powerhouses on their own thanks
to social media
•It democratises the market for
artists
•You can be a star by popular
demand rather than gatekeeper
selection

27. The ROLE of the GALLERY evolves
•The curatorial aspect becomes
more important. Galleries become
recognazible brands.
•Social media challenges the role of
galleries as gatekeepers

28. 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

29. 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

30. 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?
Filippo Mineli, Shape 5

31. How does this affect ART
INVESTORS?
•Prices are driven by demand
•It is a liquid market
•Prices can go up or down!

32. a recap

33. The biggest chunk of
the market has
traditionally been
overlooked

34. The biggest chunk of
the market is growing

35. The biggest chunk of
the market has not
been disrupted

36. Disruption has huge
implications for
artists, galleries and
buyers

37. Disruption is happening
RIGHT NOW