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Art Dealers & Galleries
First Research, April 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US art dealers and galleries industry includes about 5,000 companies with combined annual revenue of about $6 billion. No major companies dominate the industry, which is fragmented: the top 50 companies generate about 40 percent of industry revenue.
COMPETITIVE LANDSCAPE
Consumer spending and home decorating trends drive demand. The profitability of individual companies depends on effective merchandising and marketing. Large companies have advantages in buying, financing, and marketing. Small companies can compete effectively by offering unique products, providing superior customer service, or serving a local market. The industry is capital-intensive: average annual revenue per worker is about $360,000.
Art dealers compete with a wide range of retailers, including mass merchandisers and home decor stores.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include original pictures, drawings, prints, photographs, and sculptures. Prints include lithographs, giclées, serigraphs/silkscreens, posters, and etchings. Art dealers may also sell collectibles, books, or artist supplies. Services include framing, delivery, and hanging. Companies may provide appraisals, especially for expensive artwork. High-end dealers may help individuals or museum curators find specific pieces of art or develop collections.
For the general population, popular subjects include landscapes, florals, wildlife, figures, animals, and marine life. Artwork periods include Realism, Impressionism, Abstract, Pop-Art, Art Deco/Art Nouveau, and Primitive. When dealing with original artwork, authenticity, quality, condition, and rarity are important in assessing value. Limited editions of prints are produced in fixed quantities and numbered to show rarity, versus open editions, which have unlimited availability.
Primary market...
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