Art Auction - Contemporary Market Structure

Contemporary Market Structure

The late 1980s were a boom period for art auction houses. However, in early 1990, the market collapsed. The USA overtook the EU as the world's largest art market with a global share of 47 per cent by 2001. Ranking second, the UK's world market share hovers around 25 per cent. In continental Europe, France was the market leader while in Asia, Hong Kong continues its dominance. France’s share of the art market has been progressively eroded since the 1950s, when it was the dominant location and sales at Drouot surpassed those of Sotheby’s and Christie’s combined. In 2004, the global fine art market turnover was estimated at almost $3 billion. Art auction sales reached a record $2.4 billion in 2007, fueled by speculative bidding for artists such as Damien Hirst, Jeff Koons, and Richard Prince. Christie's and Sotheby's are the leading auction venues. In 2002, LVMH acquired Swiss art advisory firm de Pury & Luxembourg and merged it with Phillips to form Phillips de Pury & Company, with the aim of breaking the duopoly at the top of the market.