Despite its 277 years Sotheby’s, the largest auction house in the world, has never done so well. Driven by the pandemic and the closure of physical places, the house has had to reinvent itself and invest in digital technology to support its growth. A bet that has paid off, allowing the company to maintain its leadership while rejuvenating its clientele.
Sotheby’s attracts new clients
The pandemic has obviously not quenched the appetite of collectors, since the auction house Sotheby’s signed a record year with $ 7.3 billion in sales, up 71% over 2020, and even 26% compared to 2019. Of this total, auctions totaled $ 6 billion and private sales $ 1.3 billion .
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While the year 2020 was marked by the pandemic, auction houses sought to innovate and invest in digital to maintain their sales. The result: sharply higher sales and a new audience, with the company indicating that 39% of buyers are “new” in 2021.
The power of attraction of NFTs
Sotheby’s was especially noted this year for its breakthrough in the world of NFTs (or non-fungible tokens, certificates of authenticity associated with a virtual object). Sotheby’s Metaverse, its dedicated NFT marketplace, has helped attract and rejuvenate new customers.
78% of NFT bidders were new to Sotheby’s and more than half were under 40, according to the company report. Although still weighing little in the company’s turnover, NFTs have enabled it to record $ 100 million in sales in this new category, with new bidders pouring into its Decentraland virtual gallery.
Sotheby’s entered this new market in April with its first sale in collaboration with digital creator Pak. A three day sale of a collection known as “The Fungible“grossed $ 16.8 million. Among her other notable sales, a batch of NFTs Bored Ape Yacht Club reached $ 24.4 million. Last June, she also sold the web’s source code for 5.4 million dollars. millions of dollars.
A collage of NFT from the Bored Ape Yacht Club Source: Sotheby’s
French billionaires in action
NFTs appear to be a new battleground for auction houses. Christie, the second largest auction house, owned by François Pinault, also stood out with its first sale of a 100% digital work in March 2021.
The artist Beeple sold his work there “Everyday: the First 5.000 days“for $ 69.3 million. More recently, it also auctioned the first page of Wikipedia for $ 750,000. To allow Sotheby’s to continue its momentum and maintain its leadership, its owner Patrick Drahi, another great French billionaire , is currently preparing its IPO The battle has only just begun …