Susan Moore

Special relationship

For the past 20 years or more the auction houses have been doing their utmost to wrest the retail art market out of the hands of the dealers. Few would disagree that they have had considerable success. In taking over Sotheby’s in 1983, the Detroit shopping mall billionaire Alfred Taubman saw what he called ‘a unique marketing opportunity’ in transforming what was essentially an up-market but loss-making wholesale operation — the majority of saleroom buyers were dealers — into a glamorous retail business. The allure of turning a profit by circumventing the dealers was irresistible. And the real beauty of it was that this ‘retail’ business did not require any investment in expensive inventory.

All that was needed was to persuade the newly affluent that they needed to acquire works of art and that the saleroom was the place to buy them. No less importantly, to lure the potential consignor their vast publicity machines told the world that the heat and drama of a saleroom bidding battle would generate a far higher price than any level-headed dealer would be prepared to offer any client. And, hey, why stop at just selling art, jewellery and antiques? What about dealing — euphemistically termed private-treaty sales — and providing everything from bespoke financial services and legal advice to restoration and art education, as well as a smart cocktail-party circuit to pep up social life?

So the auction houses got makeovers and new corporate HQs, and the scruffy experts were gradually replaced by staff who, however clever, pass for suave young sales assistants. As if to emphasise the point that art and antiques was just another facet of the luxury goods industry, the world’s third largest auction house was taken over by LVMH. The Big Two now dominate the art market.

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