Market Intelligence
Online auctions: the evolution of the species.
The COVID-19 pandemic has forced auction houses to cancel physical sales and instead switch to online auctions. H&H, which already had an online sales program, was the first to begin, followed by RM Sotheby's, Bonhams, and CCA. Other auction houses such as Barrett-Jackson, Silverstone, and Brightwells are also preparing for their first online auctions. Although it remains to be seen how successful these auctions will be, many auction houses are adapting to the times to show their ability to survive.
For the world of auction houses, whose fortune lies in rooms heaving with potential buyers, and important events designed to attract the right crowd, the months of lockdown imposed by the spread of the evil coronavirus are creating a truly dramatic situation.
Just consider, for example, the series of sales that RM Sotheby’s alone has been forced to cancel: Palm Beach (although this was turned into a remote auction), Essen (we’ll come back to this one), Auburn, Monaco and, worst of all, the Monterey auction that had been due to coincide with the Pebble Beach Concours d’Elegance (also postponed). Just to give you an idea of what this means in financial terms, last year the Monterey sale alone brought in more than 107 million dollars!
We are all familiar with Darwin’s “survival of the fittest” theory. Mindful of this concept, many auction houses are adapting to the times, determined to show their fitness to survive. As a result, online auctions are now popping up like mushrooms.
