Italian auction houses and the low-end art market opportunity

According to Artprice, in 2018 over 50% of secondary market art sales in the Western world were hammered at under $1,000. Citing The Art Market Report 2018, exactly 239,803 works sold for less than €885. Extending the threshold to $5,000, the number reaches 363,838, representing 79.6% of the entire market. These figures highlight a growing market segment that deserves more attention, based on transaction volume rather than economic value. While matching the value of a record sale requires a huge number of smaller sales, such record sales are not random. Artsy reports that of the 20 most expensive works in 2018, 15 were sold in New York, 2 in London, 2 in Hong Kong, and 1 in China. The US, China, and the UK together account for about 85% of the market, while Italy participates with a modest 1.3%. The article argues that Italian auction houses could strategically target the low-end segment to expand their customer base and foster new collectors, as most Italians associate the art market only with sensational high prices. Building a collector base could have multiplicative social effects, increasing both supply and demand. The author suggests that a formalized strategic approach, rather than relying on spontaneous market mechanisms, may be necessary for Italian auction houses to capitalize on this opportunity and give character to the Italian market.