Artvice: Janice Ngan

The art market can be a complex and intimidating environment for both emerging and established artists. Therefore, navigating the art market can be challenging for artists, especially when it comes to understanding the nuances between the primary and secondary markets. In this exclusive podcast episode, we had the privilege of engaging in a conversation with Janice Ngan, a seasoned art professional possessing a diverse background and an abundance of experience within the creative industry. She shared her insights on the art market and how they impact artists' careers.

Janice explains the expanded role of auction houses like Bonhams, which engage in public auctions (live & online), private sales, selling, and non-selling exhibitions. Janice went on to explore the impact of the secondary market on artists, emphasizing the role of auction houses in facilitating transactions; and the rise of the ultra-contemporary art category that has brought attention to young talents, supported by social media channels and private selling exhibitions. Janice also notes the growing interest in the secondary market for Vietnamese artists, drawing lessons from the success of Asian art in large.

The art market is divided into two main segments: the Primary and Secondary Markets.

The Primary Market is where artworks are sold for the first time. It involves direct transactions between artists (or their galleries) and collectors. The works are fresh, coming straight from the artist’s studio. Collectors in this market often have personal connections with artists or work with galleries specialized in discovering and promoting emerging talents.

Key characteristics of the Primary Market include:

• Direct Sales: The transaction is direct, often involving personal connections between the artist and the buyer, or through galleries that specialize in promoting emerging artists.

• Fresh Works: Artworks sold in the primary market are new, often straight from the artist's studio, with the paint still fresh or materials recently worked.

• Initial Pricing: Prices are typically set by the artist or gallery, establishing the initial market value for the work.

  
  

On the other hand, the Secondary Market deals with the resale of artworks. Once an artwork has been sold in the Primary Market, any subsequent sales occur in the Secondary Market. This includes private sales and auctions. The Secondary Market reflects the changing hands of ownership and often involves artworks that have been previously valued and sold.

Many artists believe the Secondary Market is only for well-established names and has little relevance for emerging artists. However, Janice emphasized that this is a misconception. The Secondary Market can play a significant role in an artist's career by providing a platform for their work to be resold and appreciated by a broader audience.

This market is characterized by:

• Resale Transactions: Artworks are resold through auctions, private sales, or gallery resales. These transactions involve a change of ownership and often reflect the artwork's appreciation in value over time.

• Market Dynamics: The Secondary Market can include high-profile auctions that generate significant media attention, as well as more discreet private sales.

• Value Indication: Resales in the Secondary Market can serve as indicators of an artist’s success and the sustained interest in their work. High resale values can enhance an artist's reputation and market standing.

When an artist's work appears in the Secondary Market, it can enhance their career by demonstrating a continued interest and value in their work. An increasingly higher resale price can servse as a benchmark of success, indicating that the artist’s work is in demand and appreciated over time.

Moreover, Janice also mentioned a compelling point about how the post-COVID era has influenced art collecting practices. The COVID-19 pandemic has reshaped many aspects of the art market, particularly through the rise of online auctions. The pandemic has made it easier for a broader audience to participate, breaking down the traditional barriers associated with in-person auctions. The shift to online platforms has attracted younger and more diverse collectors, expanding the market base. Online auctions offer longer bidding periods and the convenience of participating from anywhere, making it more appealing to a wider range of buyers.

In conclusion, Janice advises emerging artists to actively engage with the art community, attend events, pursue internships, and build relationships while remaining open to ongoing learning. By following these strategies, artists can navigate the art world more effectively and increase their chances of success. Understanding the relationship between the Primary and Secondary markets is crucial for artists aiming to navigate their careers successfully. By recognizing the opportunities within the Secondary Market and leveraging the expanded accessibility brought by online platforms, artists can enhance their visibility and market presence. Auction houses will continue to play a vital role in this ecosystem, offering various services that support the sale and resale of artworks.

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