Auction house Phillips expects Chinese buyers to drive art sales as market proves resilient to Covid-19 pandemic
- Phillips is hopeful of setting a record for its upcoming fall contemporary art auction with Beijing-based partner Poly Auction
- China, the world’s third-largest art market worth US$11.7 billion in 2019, will continue to fuel growth of auction sales despite travel restrictions
Even as the coronavirus pandemic wrecks havoc on the global economy, a handful of businesses such as art auctioneers have proven resilient and even thrived, clocking record sales as they bolster their limited physical auctions with a much larger online presence and strategic partnerships.
Against this backdrop, auction house Phillips and Poly Auction, a unit of Hong Kong-listed Poly Culture Group, will jointly conduct the upcoming fall auction, hoping to keep the momentum going, said Jonathan Crockett, chairman of Phillips Asia. The two auction houses are hammering out new ways to market art, both online and offline, amid the coronavirus pandemic.
The record was achieved despite 60 per cent fewer attendees compared to last November because of travel restrictions and social distancing measures imposed by the government.
Similarly for the upcoming fall auction in December, rooms packed with bidders that are a regular feature of art auctions in the city can be ruled out, as Phillips will have to abide by rules imposed by government on large gatherings to prevent the spread of Covid-19. The pandemic has largely been in control since the outbreak of the “third wave” in late July.
Global art sales plunge as social distancing, Covid-19 infection fears keep buyers away
They accounted for 65 per cent of the buyers in their July auction, while in 2019 buying activity from mainland China rose 77 per cent from a year ago, according to Crockett. Beijing-based Poly Auction meanwhile had auction sales of US$1.2 billion last year, according to its annual results.
The tie-up is mutually beneficial for both companies, said Crockett as it has helped Phillips to gain more exposure to mainland collectors, while Poly Auction has from Phillips’ global reach.
To prepare for the upcoming event, the two auction companies will ship art pieces to Beijing, Shanghai, Shenzhen and Taiwan for potential buyers to preview. While bidders may still be unable to cross the border to attend the auction physically, they can still participate through live online bidding.
“We have had to come up with a different format to respond to the needs of buyers [because of] the pandemic. As is always important with art, we continue to arrange travelling exhibitions to ensure clients can still stand in front of our sale offerings despite physical travel being restricted,” he said.
Poly Auction also operates in Hong Kong and Macau, with the unit in the gaming hub headed by Sabrina Ho, daughter of the late casino mogul Stanley Ho Hung-sun and his fourth wife Angela Leong On-kei.
Crockett said he and Ho have been working closely together. Ho, who is also the founder of Chiu Yeng Culture, a non-profit that promotes cultural and art in Macau, is helping with artworks for the upcoming Hong Kong event and finding potential buyers.
In 2019, Christie’s Hong Kong recorded the highest-selling lot of the year in China with the sale of Chinese artist Sanyu’s Five Nudes (circa 1950s). The painting fetched US$39.1 million in its November auction.
The city hosts several major art fairs such as Art Basel and auctions which often attract buyers from China, the world’s third largest art market with total sales in 2019 estimated at US$11.7 billion, according to the Art Basel and UBS Global Art Market Report issued in May.
