The distribution of art works starts from the primary（Primary market,
based on the stage of purchaser（Collector）and secondary（Secondary market),
it is distributed in the art industry.
Taking the example of existing artists, the latest works are generally announced at galleries, department stores, and art fairs, where they organize exhibitions and bring their works to the world. This is the primary market called the “Primary”.
The primary pricing will be finalized by taking into account years of experience as a writer, production period, creation cost, store opening cost and labor cost at the presentation location, sales promotion cost, etc. The set price tends to rise as the artist’s achievements and popularity accompany, but this often does not match the actual situation of supply and demand.
- If the secondary price of the target writer soars, it can generate enormous profits that are incomparable to the price purchased at the primary.
- It’s fun to watch over and support the growth of the artist.
- It takes a long time for the target writer to become famous, so it is not suitable for the idea of asset management.
- The target writer does not always become famous.
The secondary market, to which we, the antique dealers, belong, is the place of distribution where new products are classified as second-hand goods after being announced at the primary and once in the hands of the purchaser. This market has a large pyramid shape, and the higher it goes up, the more it is treated as a work of art, and the lower it goes, the more it is treated as a recycled product. In art, even if it is second-hand, if there is no problem with the condition, the value will not decrease, so many works are traded in the secondary. All deceased writers and antiques are included in this secondary field. Auctions are the most common way to buy secondary pieces. Since the winning bid is determined by the balance between supply and demand in an auction, it may jump to a considerably high price if added value is added in consideration of popularity. One of the characteristics of an auction is that if competitors who absolutely want to get it compete for it due to the unusual heat in the venue, the price may be hundreds of millions or tens of billions beyond imagination. This isn’t necessarily a good indication of the value of the work, but it’s definitely a price that reflects the market rather than the primary price.
Most of the artist’s works released in the primary tend to drop in price in the secondary, but the works of Yayoi Kusama, Yoshitomo Nara, Takashi Murakami, who are world-famous in the contemporary field, are supplied. Demand is rising sharply. Especially the one-of-a-kind painting is remarkable, and the transaction price at the secondary is far beyond imagination. The contemporary auction market has been expanding year by year, although there was a temporary decline after the Lehman shock.
In the secondary, the economic situation of the times has a great influence on the distribution price of works of art. During the bubble period in Japan, demand greatly exceeded supply and continued to hit unusually high prices in all fields, but when the bubble burst and entered a period of stagnation, it was revised downward significantly, and now except for special Japanese art. However, the situation has continued for a long time. Chinese art with intrinsic value is deeply popular because the world is a market, and museum piece-class works have been repeatedly awarded at extremely high prices.
In recent years, some secondary prices have been on the rise, and the fact that the highest bids for auctions have been renewed has become big news in the world. Before being featured at top brand auction houses such as Christie’s and Sotheby’s, there is a rigorous review by the company’s expert group. This is the place where listed stocks are traded in the stock market, and it is also a social gathering place for the wealthy people in the world.
- It is basically cheaper to buy than the primary purchase, with exceptions.
- When considered as an asset, short-term profits can be expected compared to the primary.
- If you don’t have a good forensic eye, you may grab a fake. This is a risk hedge by finding top brand auctions and specialty stores.