Forces at work in the artist/gallery world

Two recent articles exploring the commercial side of the art world are must-reads for anyone making, selling, or collecting art In This Economy (I’m trying to avoid using that tedious acronym, ITE, which is popping up in nearly every conversation).

The first, “This Summer, Some Galleries Are Sweating”, reporting on the devastating downturn-effects experienced by many prominent New York galleries, appeared in this week’s New York Times. Some big-name venues have simply folded. Others are scrambling to adopt survival tactics that include giving deep discounts to price-sensitive collectors, featuring lower-priced works, cutting inventory, laying off staff, and dropping artists without strong sales records.

On the upside are greater opportunities for smaller and less expensive works, and for close collaboration among artists, galleries, and established collectors (as opposed to “shoppers” who might be more interested in speculative buying).

On the downside, a particularly disturbing takeaway is that collectors are feeling especially conservative, meaning that younger, emerging artists may find their futures eclipsed before they’ve had the chance to establish their voices – and this could translate into a dishearteningly long-term loss of diversity and innovation in the art discussion. All in all, it’s a cautionary tale that could make anyone working in the art world quake in his or her shoes.

The second article, titled, “It Is Okay for Artists to Make Money … No, Really, It’s Okay”, is a working paper published in April by colleagues at my old haunt, the Harvard Business School. The page presents the article abstract and contains a link to the entire paper in downloadable format.



This timely article deconstructs several competing assumptions that arise in discussions about “art” and “commerce” – e.g., art is a luxury and an indulgence; commercial concerns will drive out aesthetic excellence, etc. The authors’ ultimate conclusion is that good art can and should achieve appropriate commercial value consistently, not just occasionally, and that this occurrence is most likely when a conversation takes place between artists and managers, a conversation in which neither artists nor managers dominates.

Although Austin and Devin are not writing specifically about the world of gallery art, theirs is a critical point for everyone active in that world – artists, galleries and collectors -- to examine and take into account. And as the NYT article makes clear, artist/gallery relationships must work together to respond effectively to market pressures. To paraphrase, “If both parties do a great job, we end up … with an outcome that has both artistic and commercial value, an outcome to celebrate.”

One can’t predict with any degree of certainty which galleries and artists will weather the turbulence of the financial storm. However, it’s safe to say that close collaboration between artists and their galleries are more likely to come up with strategies that will aid in mutual survival.