China's Impact in the Art Market

As many people know, Sotheby's is one of the world's largest and well known auction houses. As I have previously stated in other posts, another facet of globalization and the arts is the art market itself. For many years, the focal point of the art market has been in the United States and Europe. However, this "point" is gravitating more so towards China.

I found this remarkable video that really puts this movement into perspective. William Ruprecht, president and CEO of Sotheby's, stated that in 2007 only four percent of their annual transactions were from China. In four years, that percentage has increased to 35 percent. There has never been an increase this large in the history of Sotheby's. These numbers are making China the world's largest art market with "over 4 billion dollars worth of Chinese paintings that have been sold in Beijing," states Ruprecht. Ruprechet also mentions a "duopoly." This is an economic model in which there are two producers in a market, in this case Sotheby's and Christie's. It is interesting because now, three of the worlds major art auction houses are located in China rather than the US and Europe. The growth and movement can be understood through globalization in general and the role that China has played in all aspects of globalization. China is one of the most powerful countries in the world where there are people who have millions in disposable income that can be spent in the art market.

Reference:
"The Rise of China in the Art Market: An excerpt from a conversation between William Ruprecht, president and CEO of Sotheby's and Yale SOM Dean Edward A. Snyder." Video. http://www.youtube.com/watch?v=mzD13uZatpo