Phillips, one of the leading players in the art auction world, has reported a substantial 39 percent decrease in its global sales for the first half of 2023, raising concerns about a potential slowdown in the art market. The auction house’s sales figures for the period totaled $453 million, a significant drop from the $746 million it achieved in the same period of 2022.
The previous year, 2022, had marked a notable upswing in sales, showcasing a 37 percent increase compared to the $542.7 million reported for the first half of 2021. However, the recent decline in sales has given rise to speculations about the overall health of the art market and its trajectory.
Within the $453 million reported for the first half of 2023, auction sales made up $409 million, encompassing both traditional auction and private sales. This figure reflects a 31 percent decline from the $590 million reported during the same period in the preceding year. Notably, this year’s auction sales also dipped below the $452 million recorded in the first half of 2021.
Private sales, which have been an integral component of the art market’s resilience and innovation in recent times, witnessed a significant downturn. The reported private sales for the first half of 2023 amounted to $44 million, indicating a substantial 72 percent decrease from the impressive $156 million recorded in the prior year.
The art market, particularly its private sales segment, had showcased remarkable resilience amid the pandemic as it adapted to hybrid and online formats. Last year’s record high for Phillips’ private sales underscores this progress, making the current drop more pronounced.
Despite the downward trend, Phillips pointed to specific areas of success within its contemporary art day sales. These sales focus on emerging and mid-career artists, offering works at primary market prices, thus catering to a more accessible segment of collectors.
Phillips attributed its achievements to an influx of new entrants, both artists and clients, to its sales. The introduction of 50 artists to the auction stage, including names like Sarah Cunningham, Yuan Fang, Henni Alftan, Jess Valice, and Emma Cousin, reflected this strategy. Additionally, the house highlighted its emphasis on engaging new and younger collectors, with over 40 percent of buyers making their first purchase at Phillips.
This market downturn echoes similar sentiments expressed by other industry players. In July, Christie’s reported a 23 percent drop in sales for the first half of 2023 compared to the previous year, attributing the results to a challenging macro-environment. The art market slowdown has also affected online platforms, as demonstrated by layoffs at Artsy in June.
Despite these challenges, Phillips remains committed to expanding its market share across various categories and maintaining its focus on accessibility. The long-term implications of these sales decline on the art market as a whole, and the strategies employed by key players to navigate these uncertainties will continue to shape the industry’s landscape.