Meeting the Challenges of Art Galleries through Technology

Description

Between the years 2012 and 2015, the art market counted about 12 notable art gallery closures. From 2015 through 2017, however, the market saw 46 prominent galleries shuttering their doors. More than 30 of the high-profile closures happened in 2017 alone.

Of course, the issue would not be so concerning if it was not for the fact that fewer new galleries are opening than ever before. In 2007, five galleries opened to every gallery closing, according to Artsy. Artfacts.net counted a total of 275 galleries worldwide that opened in 2007; in 2017, less than 50 new galleries opened their doors.

The last several years have also seen downward pressure on the sales of small- and mediumsized (SMG) art galleries. In 2016, establishments with less than US500,000 in revenue saw their sales slide by seven percent, while sales at galleries with between US$500,000 and US$1 million fell by fi ve percent.

However, those with the capital to withstand changes in buyer tastes and the ballooning number of High Net Worth Individuals actually saw their sales increase. Galleries that already had sales between US$1 million and US$10 million actually saw sales rise by seven percent. Businesses with sales between US$10 million and US$50 million had growth of about two percent. Meanwhile, galleries that were already making more than US$50 million had sales increases of nearly 20 percent.