The case

One cannot help but presume that the two major global auction houses, Christie’s and Sotheby’s, are experiencing a crisis because their business dealings with the Asian super-rich have been declining, which is in stark contrast to the previous record years when sales were flourishing.

Source: Repubblica (Dopo anni da record la crisi delle aste d’arte)

The commentary

Sotheby’s, which was established 280 years ago and is now owned by Patrick Drahi, sported record sales of USD 7.9 billion in 2023 with those record sales nosediving in the first half of 2024, marked by a 25 % drop in sales and a slump in turnover amounting to over 80%.

Competitor Christie’s, owned by François Pinault, also saw a 22 % drop in sales, which can be partly attributed to a decline in luxury spending among Asia’s super-rich,the main factor being the slowdown in China’s economy.

A a consequence of this slowdown there has been a significant decrease in the number of Asian buyers at Christie’s auctions. Chinese markets have been particularly affected, with a 40 % drop in value of sales at global auction houses from January to June 2024 compared to the previous year.

It was only recently that Abu Dhabi-based sovereign wealth fund Adq announced that it was acquiring a minority stake in Sotheby’s. This move could hint at financial challenges that Sotheby’s may be faced with.

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