Market shares are traditionally contested between the two rivals. Therefore, it is possible for the sellers to negotiate terms with the houses in their favor. To win over the potential seller, the companies make concessions that in some cases cost them amounts in the six-figure range. However, they accept this in order to maintain their dominance in the market.

In the past, there was a clear asymmetry of information vis-à-vis customers and competitors, which gave Sotheby's and Christie's advantages. Today, however, it is possible to eliminate the imbalance with a quick search. The beneficiary, for example, is competitor Phillips, a small auction house that wants to stay on the heels of the big houses with a new positioning aimed at young people.

The fact that investors see art as an investment and have a need for information represents another opportunity for companies in the sector. They offer online market data and analyses on works of art for a fee, enabling their customers to identify attractive investment opportunities on the art market even without expert knowledge.

Online auctions of traditional houses

In addition, the development of online auctions has the potential to change the art market in the long term. So far, there are smaller providers specializing in the sale of art, putting small auction houses under pressure. So far, however, they do not represent any serious competition for Sotheby's and Christie's.

Nevertheless, it is essential for the large traditional houses to keep up with online auctions.

Christie's conducts auctions in the digital space under its own management. In 2014, Sotheby's secured a well-known partner for this in the form of the online portal eBay. As part of the collaboration, Sotheby's conducts various auctions online. This means that the traditional houses have finally arrived in the present.

Have you had any experience with traditional auction houses - perhaps even Sotheby's or Christie's? Would you buy art at auction online or trade similiar shares mt4 download? Share your experience in a comment!

Conclusion:

    The first auctions took place in the 18th century.
    Together, they generate auction revenues of $12.3 billion.
    Rivalry compels concessions to defend market share.
    Increasing digitization and availability of information make it easier for competitors to enter the market.
    Online auctions are gaining popularity in the art market. Christie's conducts its own auctions online. Sotheby's maintains a partnership with eBay.