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Are there any upcoming artists who stand out to you in either the American or Chinese markets? Michael and Nicolai Frahm: There are a number of names emerging from China that we should certainly be keeping a close eye on. Sun Yuan & Peng Yu, Wang Qingsong, Wang Guangle, Liang Yuanwei and Jia Aili are all bright prospects for the Chinese market. The American artists which are undoubtedly creating the biggest stir include R.H. Quaytman, Sterling Ruby and Mark Grotjahn. |
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“We have also witnessed Chinese artists enjoying a greater involvement in the global market, which was once dominated in its entirety by American and European artists.”
Sarah Taylor: How are the American and Chinese markets performing today?
Michael and Nicolai Frahm: For the last 20-30 years America has been the strongest art market in the world. While interest in the Middle Eastern and Asian markets is developing, there is no denying that America continues to lead the way globally.
Not only does America continue to boast the largest number of buyers but the biggest dedicated collectors too are located in America. These individuals have been collecting for a long time; they have built huge collections and have developed a firm grasp of the global market. These collectors are also the individuals who support the creation and development of private museums and continue to donate to museums in the US.
American collectors have built and developed an enthusiasm for the contemporary arts market, an appetite which shows no sign of slowing down, as we witness high value sales continuing to take place, most notably at New York’s biggest auction houses.
In the last five years pieces by some of America’s greatest contemporary artists have fetched huge sums of money, continually breaking auction house records. Andy Warhol’s “Green Car Crash” broke auction records in 2007 when it sold for $71.7m and, some five years later, Mark Rothko’s “Orange, Red and Yellow” from 1961 was sold for just shy of $87 million at Christie’s New York, again breaking the auction record for a work of contemporary art. Here, buyers are ready and willing to spend in their millions to secure the very best pieces, making for an incredibly competitive, high value market.
If we compare this scene to the Chinese market, we are able to draw immediate comparisons. In China we find fewer true art collectors and, while Chinese buyers may be hitting the headlines for spending huge sums of money to secure the most iconic works publicly at auction, these wealthy individuals are far less knowledgeable about the global arts market. Unlike the vast number of American collectors, these Chinese buyers do not have as greater understanding of the history of the market nor extensive experience in building and developing personal collections. While Chinese buyers today make up over 40% of the global auction market, they are far less inclined to buy from individual galleries and have not yet taken the time to study the collector base and the art scene as a whole.
The Chinese market is however, undeniably, growing – a process which has been shaped by a number of contributing factors. In fact, a recent report, ‘The International Art Market in 2011: Observations on the Art Trade over 25 years’, revealed that China now boasts the greatest share of the global art market, overtaking the US for the first time to stand at 30%, compared with 23% in 2010.
The creation of wealth which continues to occur at a pace in China is also having a considerable impact on the market, increasing the pool of people who are in a position to buy art, particularly at the very high end of the market. To these buyers, art is a sound investment and one which enables them to publicly communicate their wealth at auction. The combination of wealth and developing appetite for art means that the market today is a highly competitive one. With buyers vying to secure the best works, demand soars and prices rise.
We have also witnessed Chinese artists enjoying a greater involvement in the global market, which was once dominated in its entirety by American and European artists. Today half of the world’s top 10 contemporary artists by revenue are Chinese as Zeng Fanzhi, Zhang Xiaogang, Chen Yifei, Wang Yidong and Zhou Chunya all now feature in this list.
But while the Chinese market shows positive signs of growth and significant development, there is some way to go before it reaches a similar position to that which the American market finds itself in today. Before then, we are likely to see the London market moving further and further towards that of New York in terms of quality and influence. London could, in time, take over New York as the arts capital of the world, as new buyers relocate to London and we witness wealthy Chinese, Russian, Indian and European buyers invest in property in the city, bringing their growing interest, and their wealth, to the English capital.
Michael and Nicolai Frahm: Today it is accepted that art can sell for any price. People feel comfortable buying quality works and are unafraid to spend huge sums of money to secure the very best pieces. Over the last five years we have seen appetite for photography in particular reach new heights.
While interest in photography began to fluctuate in the mid 90s, prices remained relatively conservative. It was not until the mid 2000s that we witnessed prices take off and this is something we will undoubtedly see continue as it becomes more acceptable for a piece of photography to fetch large sums. The same is true of furniture, with people now far more willing to pay large sums for the best pieces.
One of the biggest trends to note in China is the ongoing reliance on the major auction houses and the dominance they have in the market, which is far greater than that in Europe or in America. Their power and influence means that the market can, at times, lack diversity, as they are able to control much of what is brought to market. The primary market in China is lacking strength as buyers are far more inclined to buy at auction and are hesitant to deal privately. If we are to contrast this with the US and European markets, the scenario is very different, with buyers in these regions very often opting to purchase in a more discreet fashion and to remain anonymous wherever possible. Quite simply the motivation for buying and owing art in China is different.
Sarah Taylor: Can you elaborate on how big sales like that of “The Scream” have shifted sensibilities in the market?
Michael and Nicolai Frahm: Record breaking sales of pieces like Edvard Munch’s “The Scream” and Mark Rothko’s “Orange, Red and Yellow” continue to catapult the arts market into the headlines of the mainstream media. With Christie’s and Sotheby’s continuing to bring some of the best quality works to auction, the very top end of the market in particular is performing better than ever before and is generating global attention.
Michael and Nicolai Frahm: There are a number of names emerging from China that we should certainly be keeping a close eye on. Sun Yuan & Peng Yu, Wang Qingsong, Wang Guangle, Liang Yuanwei and Jia Aili are all bright prospects for the Chinese market. The American artists which are undoubtedly creating the biggest stir include R.H. Quaytman, Sterling Ruby and Mark Grotjahn.
