This Year Again, Asia's 'Young Big Spenders' Trend... Auction Market Heats Up

[Asia Economy Reporter Jeong Hyunjin] "The millennial generation is leading and transforming Christie's global business."

The 'young big spenders' millennial generation wave in the auction market, which began after COVID-19, continues this year following last year. As millennials interested in contemporary art and luxury goods increasingly enter the market through online channels, the auction market's enthusiasm is heating up even more. In particular, Asian millennials have shown a strong presence.

(Photo by Christie)

On the 19th (local time), Christie's, one of the world's top three auction houses, announced that it sold artworks worth a record $8.4 billion (approximately 11 trillion KRW) this year. Last year, sales also reached a record high of $7.1 billion, but this year increased by $1.3 billion. Christie's reported that sales through auctions surged 33% to $7.2 billion compared to last year, while revenue from private sales between individuals decreased by 29% to $1.2 billion.

◆ Millennials Interested in Luxury Goods and Contemporary Art Increase

One of the reasons for Christie's sharp increase in sales this year was the influx of young collectors under 40. Among all buyers at Christie's this year, 21% were millennials, up 2 percentage points from last year. Additionally, new buyers entering the auction market through Christie's accounted for 35% of the total, with millennials increasing their share from 31% last year to 34% this year.

Christie's stated that about 1,200 millennial collectors under 40 participate in each auction. These collectors are more accustomed to online auctions than traditional collectors. It appears that 65% of Christie's new buyers entered the market through online sales due to the millennial generation's entry. Millennials under 40 actively participate not only in art auctions but also in luxury goods such as handbags, watches, and wine auctions.

Among millennial buyers, the influx of Asians is particularly notable. Although the proportion of buyers from the Asia-Pacific region among Christie's total buyers decreased from 31% last year to 26% this year, the proportion of amounts spent by Asian millennials reached 62% this year. Guillaume Cerutti, CEO of Christie's, said, "(Asia) has the fastest-growing base of new collectors."

Christie's held an auction last May for Andy Warhol's Marilyn Monroe portrait, "Shot Sage Blue Marilyn" [Image source=EPA Yonhap News]

Unlike previous generations of Asian collectors who mainly focused on Asian art and antiques, millennial Asian collectors have shown increased interest in Western artworks, according to Christie's. Christie's revealed that 29% of the winning bidders in the auction of Allen's collection, which included about 150 items, were Asians. Additionally, luxury goods sales including handbags, watches, and wine in Asia reached a record high of HKD 2 billion (approximately 340 billion KRW).

◆ Capturing Asian Millennials... Fierce Competition Among Auction Houses

The Wall Street Journal (WSJ), reporting on Christie's sales performance this year, reflected this market situation by stating, "Global auction houses are striving to attract millennials who want watches, handbags, and contemporary art of their generation, alongside the opportunity to resell baby boomer generation's premium collections."

In fact, the world's top three auction houses?Christie's, Sotheby's, and Phillips?participated in the China International Import Expo (CIIE) last month. They joined the event considering the growing interest of Asian millennials in luxury goods and art auctions. According to the Hong Kong South China Morning Post (SCMP), a Phillips China representative said, "Since 2017, collectors in China have started showing interest in contemporary art and young artists."

Auction companies are also expanding offices centered in China and Hong Kong, putting significant effort into the Asian region. Sotheby's, a rival auction house to Christie's, recently established separate spaces for auctions and exhibitions in Shanghai and Hong Kong. Sotheby's announced on the 15th that it purchased a building in Chater Garden, the heart of Hong Kong, and plans to remodel and open it in 2024. Sotheby's auction sales in Asia this year recorded $1.1 billion, matching last year's record high.

Earlier, Christie's announced plans to expand and relocate its Hong Kong branch to the landmark Henderson Building in downtown by 2024.

This content was produced with the assistance of AI translation services.