Evolving Sales Channels and the Role of Art Fairs
As dealers recovered from the pandemic's impact, they closely monitored not only sales levels but also evolving sales methods. Before the pandemic, art fairs had become increasingly central to the market over the past 40 years, with a significant rise in the number of events globally and the share of dealers’ annual sales attributed to them. Despite their benefits, the growth of art fairs brought high costs for dealers, including direct financial outlays and opportunity costs, placing considerable pressure on smaller and mid-sized businesses. Debates continue about the suitability of art fair booths for exhibitions and the environmental sustainability of these events in the crowded art market calendar.
The pandemic led to the cancellation of most events in 2020, causing a substantial decline in art fair sales. Digital sales partially compensated, sparking intense discussions about the roles of various sales channels. Although the share of art fair sales increased in 2021 and 2022 as events gradually resumed, permanent changes in the market were evident. In 2023, these changes persisted amid challenging political and economic conditions, affecting events and exhibitions. Figure 2.32 illustrates the distribution of sales across different channels in 2023:
Gallery sales: Transactions facilitated by in-person visits to galleries or premises.
Online-only gallery sales: Sales conducted exclusively online via websites, social media, OVR, or email.
Overseas fairs: Sales from in-person art fairs outside the dealer’s primary country of business.
Local fairs: Sales from in-person art fairs within the dealer’s primary country of business.
Online art fairs: Sales from a fair's OVR or other online fair platform without physical viewing.
Other third-party online sales: Sales conducted entirely online through third-party platforms, excluding art fairs.
Other: Sales through any other means.
In 2023, gallery or dealer premises transactions still comprised the largest share of sales by value at 44%, slightly down from 47% in 2021 and 2022. Direct sales through websites and other digital channels rose from 12% in 2022 to 20% in 2023. Live event sales dropped from 35% to 29% but remained higher than in 2021 (27%) and 2020 (13%). Fair sales have not reached the pre-pandemic level of 42% in 2019, when they surpassed gallery sales.
Online sales saw a dramatic rise from 12% in 2019 to 30% in 2020 (39% including art fair OVRs). This share moderated over 2021 and 2022, falling to 16% in 2022. However, it settled at 23% in 2023, indicating a new dual offline and online reality for many businesses, with most online sales made through galleries' own platforms.
In 2023, the number of respondents (1,600) was higher than in previous years, partly due to a wider regional distribution, which might include less fair-active dealers. Despite this, the weighted shares by dealer turnover capture general industry trends. Qualitative research indicates that while dealers reengaged in fairs and offline exhibitions, many maintained digital sales strategies, which generated positive returns. Overall, from 2019 to the present, significant fluctuations in sales methods have occurred, with the biggest gain in share being the shift back to direct gallery sales, rising from 48% to 64%.
For larger dealers (over $10 million turnover), fair sales averaged 30% in 2023, down 10% year-on-year, with most sales at international fairs. Smaller and mid-sized dealers reported lower fair sales than in 2019. Tracking fair sales is complicated by the definition of fair sales, including presales, sales finalized at the event, and post-fair sales due to client contact at the event.
In 2023, presales constituted 14% of fair sales, similar to 2022 and 2019. Post-fair sales were 15%, up 1% from 2022 but down from 21% in 2019. Most fair sales (71%) occurred or were finalized at the event itself. Larger dealers reported more presales, often to regular clients, while smaller dealers valued fairs for reaching new buyers and generating post-event business.
Dealer comments in 2023 highlighted the escalating costs of attending fairs and the challenges of generating significant profits amid a difficult political and economic context. Some felt fairs were less conducive to sales in 2023, needing rethinking to balance costs and revenues. Dealers noted that market slowdown made exhibiting more challenging works riskier, requiring more strategic and financially minded exhibition planning. Rapidly changing market demands also made planning difficult, increasing the risk of misaligned booth choices.
