Collecting in the Digital Age International Collectors Survey by AXA ART

Results of a worldwide empirical study www.axa-art.de AXA ART Insurance / 2014 INTRODUCTION

For more than fifty years, AXA ART has been insuring works of art and other objects of value. Over the decades, we have accompanied collectors from around the world. We have learnt about their attitudes towards collecting, and we strive to be aware of their interests and concerns. All in all, we felt at home within the collectors’ community – until the Internet started to change their habits.

We became curious and conducted several dozen long, face-to-face interviews with collectors. The issues which emerged from these dialogues – whilst still hypothetical – were used as the basis for a worldwide online survey. In terms of participation and results, the responses are remarkable; they have been compiled in this publication.

Due to the chosen online approach, there is a certain bias in the results, as all communication took place via the Internet. It became evident that the worldwide community of collectors is changing, and that such change is partly driven by the Internet.

We hope you find the results as interesting as we did and that you can also benefit from understanding these changing behaviours.

Dr. Ulrich Guntram Silke Kastien CEO AXA ART Group Head of Group Marketing Cologne, March 2014

AXA ART AXA ART CONTENTS

4 Art collectors: who collects what, how, why and where? 12 A typology of collectors 14 Type I: art aficionados – collecting out of passion 17 Type II: traditionalists – collecting over generations 20 Type III: investors – collecting for the portfolio 23 Methodology of the Collectors Survey by AXA ART

2 AXA ART AXA ART 3 ART COLLECTORS: WHO COLLECTS WHAT, HOW, WHY AND WHERE?

Age groups

30 − 39 40 − 49

up to 29 13% 3% 25% 70 and older 9%

23% 25%

60 − 69 50 − 59

Employment status and gender 1. Who: The sample profile Further results indicated that:

Visitors to galleries and art fairs are fairly · Respondents are middle-aged: a dispro- mixed – women and men, older and youn- portionately large group is 40 to 69 years ger people stroll through the halls and old – close to three quarters of partici- exhibition spaces. Female museum direc- pants fall into this age group. Young 84% tors, artists and critics play a major role people under 30, in contrast, have a in the art world. In that context, the first below-average tendency to collect art. 76% % of respondents result of the Collectors Survey by AXA Household types ART is somewhat surprising: the typical · Art collectors often live in childless collector and Internet user is still a man. relationships: among the respondents in our sample, two-person-households More than three quarters of the interna- without children are the most common 46% tional collectors in our sample are male. way of life. Singles and families, in con- The shares of graduates and persons who trast, account for smaller percentages 42% are self-employed or entrepreneurs are of collectors. 34% also remarkably high – four out of five collec- 25% tors have a college or university degree, and close to half are self-employed or 18% entrepreneurs, whereas only 25 % are employees.

men graduates self-employed & employees singles childless families / entrepreneurs relationships others

4 AXA ART AXA ART 5 Categories of collectables (multiple answers were permitted)

94% Young collectors Paintings are at the top of 82% prefer new works of art the popularity list of collectables

68%

% of % total % of collectors collectors under 40 47% over 60

39%

30% 31%

23% 18% 13% 13% 14% 11% 12% 8%

Types of art or collectable items (multiple answers were permitted) contemporary art modern & 19th century art Old Masters art antiquities impressionist art

paintings 89% 2. What: The nature of With regard to the categories collections of objects collected, the works on paper 63% Collectors Survey by AXA ART Most collectables hang on walls: paintings shows two clear tendencies: and works on paper are at the top of the sculptures 60% popularity list of collectable items; nine · The newer, the more popular. The vast out of ten respondents in the Collectors majority of collectors in our sample – Contemporary is more photography 49% Survey by AXA ART collect paintings. 82 % – collect contemporary art, at least popular than antique Sculptures rank third with 60 %, and nearly amongst other things. Modern and im- furniture & design 29% half the respondents collect photography. pressionist art ranks second by a large margin, with 39 % of collectors. Only a Classic types of collectable objects such small minority collects older art objects ceramics & 21% porcelain as furniture and design, ceramics and such as 19th century art, Old Masters porcelain or watches, clocks and jewellery or art antiquities. jewellery, watches 15% & clocks prove less popular. The same is true for contemporary installation and video art – · Tastes strongly depend on age. Collec-

installation & 14% only 14 % of respondents say they collect tors under 40 have a marked preference video art these forms of art. for contemporary artworks, whereas older collectors over 60 more often buy wine 7% works from earlier periods. It should be noted, however, that older collectors’ musical 3% favourite category of collectables is instruments also contemporary art. others types of art 15% and collectables

6 AXA ART AXA ART 7 Collecting strategies (multiple answers were permitted)

1 in 10 collections is worth gut instinct 65% more than $1m items of high quality 30%

systematically / content criteria 25%

value / prospective value increases 14%

unusual or rare objects 9%

curator’s plan 5%

Main criterion: gut instinct

3. How: Approaches to completely on gut instinct“. Other as- · Mature collectors: 16 % are already 4. Why: Motivation for collecting pects such as the quality of objects, con- beyond the peak of their collecting acti- collecting tent criteria, value and prospective value vities – they ”have been collecting for a How do the interviewees collect – low-key increases or unusual and rare objects while, but not as intensively as before“. Most collectors’ core motive is an emotion- or on a grand scale? By instinct or syste- play a secondary role. For example, just al one: the joy of collecting and a passion matically? Continuously or at intervals? one quarter of respondents build their · ”Non-collectors“: A noteworthy minority, for art. When asked about their motiva- The Collectors Survey by AXA ART yielded collection ”systematically in accordance 11 % of respondents, say they ”would tion, a vast majority of collectors agree interesting answers to these questions: with certain content criteria“. And only a not regard themselves as collectors“. with the following statements: 5% minority of respondents base their 1. Those who collect do so on a rather collections on a curator’s plan. · ”I love to own beautiful things and to grand scale: only a minority of respon- surround myself with them“ (80 %) dents own small collections with less 3. The way people collect also depends on than 25 objects (15 %) or a value of less their stage within a collector’s life cycle: · ”I enjoy occupying myself with art and than 100,000 US $ (22%). 11 % of collec- developing a comprehensive knowledge tors estimate the value of their collection · Young collectors: 8 % of the collectors of art“ (79 %) at more than one million US $. And one in our sample have ”just started collec- third of respondents prefer to keep silent ting recently“. · ”Collecting is a passion of mine“ (72 %) as to the size and value of their collec- tions. · Active collectors: only 45 % of respond- ents state that they ”have been collec- 2. Many collectors rely on their instincts ting continuously and for a while“. when it comes to purchasing art objects: two thirds of respondents agree with the · Sporadic collectors: 18 % buy collec- Core motive: statement ”I am not a systematic collec- tables ”every now and again in phases, the joy of collecting tor but rather collect what I like based with long intervals in between“.

8 AXA ART AXA ART 9 Most important source of The Internet: rather research information: art fairs medium than art market

Places of purchase (multiple answers were permitted)

galleries 73% 5. Where: Purchasing patterns · printed media, trade journals, art. When asked ”Where and how do you newspapers, books (58 %) buy your works of art or collectable items?“, First get informed, then acquire – this is · discussions with artists (56 %) 73 % of collectors named galleries. More directly from artists 63% even more true with regard to art than for · personal contacts (52 %) than half also purchased artworks direct- other purchases. Three out of four collec- · online media, websites, internet ly from artists or via auctions. tors in our sample find it ”important“ or forums, social networks (51 %) auctions 59% ”very important“ to exchange information The Internet, in contrast, still seems to on art with others, but only 4 % ”not impor- Art consultants (21 %) or radio and televi- play a secondary role as an art market- private contacts 39% tant at all“. sion (8 %) were only secondary sources of place. Almost all collectors – 95 % of res- information on the topic of art. pondents – utilize the web as a means of Where does this exchange take place? information and communication. Prima- art fairs 39% Quite simply – at the fair. 95 % of collec- But what kind of information are we talk- rily, they employ it for researching specific tors visit art fairs. Two thirds of respon- ing about? Trends on the art market? Up- art objects and for the initial approach dents regard fairs and exhibitions as coming events? The value of specific art before a purchase. 34 % of respondents art dealers 34% ”important“ or ”very important“ sources objects? Questions concerning the hand- have already bought artworks via online of information, although they rank only ling of art? Less than half the respon- platforms as well. But 42 % of the collec- Internet platforms, 34% fourth as a place of purchase for art ob- dents consider these topics relevant – tors in our sample refuse such online online auctions jects. More than half the collectors rely 77 % of the collectors in our sample are purchases as a matter of principle; they on the Internet, and most draw on several primarily interested in one thing: informa- ”could not see themselves doing this“. art/antique or 27% other markets information sources: tion on individual artists.

via art 8% · trade fairs, exhibitions, events, In spite of online auctions, art fairs and consultants presentations (64 %) Open Studios, the traditional art gallery is · galleries (62 %) still the preferred location for purchasing art associations 4%

10 AXA ART AXA ART 11 A TYPOLOGY OF COLLECTORS

The three types overlap in various ways

Our survey shows: an aristocratic, clerical or bourgeois The shares of the three groups amongst background have been cultivating these the respondents – 37 % art aficionados, Art collectors are a very special, relatively two attitudes. The results of our survey, 16 % traditionalists, 24 % investors – homogeneous subgroup within the general however, reveal a new and different type therefore encompass mixed types as population – usually male, middle-aged of collector who has only recently emerged: well. 23 % of interviewees won’t fit into and rather well-educated. any of the above categories: · Type III: the investors. They regard their Within the collectors’ subgroup, however, collection as one part of their asset · Type IV: the hybrid collectors. Their there are distinct types. By means of a portfolio and place their primary emphasis motives are so diverse that they cannot multivariate data analysis, three different on value maintenance and value increa- be defined as belonging to one of the kinds of collectors could be identified ses. three groups. from our sample. They diverge in many aspects, collecting with different empha- When considering these profiles, it should ses, for different reasons and in different be remembered that all three share one ways. central characteristic – they are art lovers who find pleasure in collecting. And of ”Newcomer“ among · Type I: the art aficionados. Immersing course, they overlap in many ways: art afi- collectors: the investor themselves in art and collecting is their cionados also consider financial matters, passion, as a balance to everyday life. and a family tradition could develop into an intensely personal passion. Some in- · Type II: the traditionalists. By collec- vestors might happily watch while their ting, they continue a family tradition. children and grandchildren, having lived among art assets, become collectors as These two types might be called ”classic“ well. collectors – for centuries, collectors with

12 AXA ART AXA ART 13 TYPE I: ART AFICIONADOS – collecting out of passion

As early as in the Renaissance, art lovers were collectors

For many centuries, passionate art lovers Who are the art aficionados? Additionally, these collectors What do they collect? have been collectors. Pope Julius II. com- often name the following missioned works by Raphael and Michel- Art aficionados typify the character of a motives for collecting: Collectors of this type are primarily inter- angelo and his collection of antique statues collector: collecting is their passion, they ested in contemporary art. 86 % of art afi- became the foundation of the Vatican are enthusiastic about art and spend a · collecting out of passion cionados collect contemporary works – Museums. King Augustus the Strong, like great deal of time on art-related activities, · opportunity to express part of one’s mainly paintings, but also, more frequently many fellow rulers, collected masses of even if they work in a completely different own personality than the average collector, sculptures, art treasures and kept them in his vault field. · new contacts or friendships through art photography, works on paper and, even ”Grünes Gewölbe“ in Dresden. more unusual, collectables such as installa- This type of collector’s main motivation is Briefly, the art aficionado loves everything tion and video art. Two thirds of art afi- These days, important collectors don’t summarized by the following statement connected with art and art-related activi- cionados rate themselves as ”knowledge- necessarily belong to the clergy or the from our survey: ties and regards collecting as an enrich- able“ or ”very knowledgeable“. aristocracy any longer. Most of them have ment of human life. a bourgeois background, such as Eli and One third builds their collection systemati- Edythe Broad from Los Angeles, fashion ”For me, collecting is an cally in accordance with certain content designer Miuccia Prada or Peter and Irene emotional or creative criteria. And 30 % of the collectors in this Ludwig from Aachen, who have all won counterbalance“ group have already loaned works from international recognition as collectors and their collection to exhibitions or museums. founders of art museums. A particularly high share of art aficionados agreed with this statement.

Art aficionados are competent collectors of contemporary art

14 AXA ART AXA ART 15 TYPE II: TRADITIONALISTS – COLLECTING OVER GENERATIONS Main interest: individual artists rather than value or performance

Where and how do art ”very important“. Primarily, they are inter- Many families have a tradition of collec- Who are the traditionalists? aficionados collect? ested in information on individual artists; ting. Aristocratic or bourgeois dynasties 80 % find this topic relevant. Only one in have often collected for a very long time Traditionalists do not necessarily have Art aficionados are the most important four art aficionados is interested in – successive generations refine the family an affluent or aristocratic family back- customers of art galleries: 79 % buy art- questions regarding the value and esti- collection or start their own. The American ground. Neither do they perceptibly differ works there. In our survey, these collec- mated performance of art objects. This industrialist family Guggenheim has pro- from the other two collectors’ groups with tors also declare the greatest interest in group’s preferred source of information duced even two world famous collectors: regard to their age, sex, profession or visiting art fairs and their supporting pro- is the classic art gallery; art fairs and Solomon Guggenheim, founder of the education level. Their motivation for col- grammes; they are regular visitors – and printed media only follow second and Guggenheim Museum in New York, and lecting, however, is very different. customers – of the important internation- third. his niece Peggy Guggenheim, whose col- al fairs for contemporary art. lection is on display in Venice. More often than the average of respon- dents in our survey, they rated the follow- However, they also visit artists in their In Germany, Franz Duke of Bavaria has ing motive as important: studios and rate discussions with artists continued the centuries-old family tradi- as a ”very important“ source of informa- tion of the Wittelsbach Collection as a tion. Two thirds of art aficionados have dedicated collector of artists including ”Collecting was, or is, purchased objects in their collection Joseph Beuys, Gerhard Richter and a family tradition“ directly from artists‘ studios, and as Georg Baselitz. many as 60 % have already bought collect- ables online.

This group also declares a particularly vivid interest in exchanging information Noble and bourgeois ”collectors’ about art with others – four out of five art families“ have a long tradition aficionados rate this as ”important“ or

16 AXA ART AXA ART 17 Traditionalists collect furniture, Art is purchased via galleries and porcelain and antiquities, too art dealers, not on the Internet

Further important motives What do they collect? Where and how do ments and trends or the value and esti- for collecting named by this traditionalists collect? mated performance of art objects only group include: Like the vast majority of interviewees, the interest one-in-three or one-in-four of this traditionalists favour paintings and con- This group of collectors primarily purchases group, respectively. · preserving and promoting temporary art for their collections. Addi- in galleries too, but they also often use cultural values tionally, however, they show a higher than private contacts, trade fairs, art dealers · owning beautiful things and average interest in traditional types of and art or antique markets for their pur- surrounding oneself with them collectables such as furniture, jewellery, chases. As for the Internet, the tradition- clocks and watches, ceramics and porce- alists are not as conservative as one Briefly: the traditionalist, who has inherited lain and wine. As for the artistic eras might assume: about half of them have or purchased beautiful artefacts, rejoices they choose to collect, their preferences already bought art objects online. Never- in them and preserves them for posterity, are somewhat less contemporary than theless, two out of three traditionalists conforms to the image of the classic col- amongst art aficionados: they collect find it important to physically view an item lector. In contrast, financial considera- 19th century art, Old Masters or art anti- before purchasing it. tions only play a secondary role – this quities more often than others. group rates collecting as an investment Even as a source of information, this as having less importance. Traditionalists are frequently experienced, group relatively rarely uses the Internet. and often discreet, collectors: 41 % of They rather rely on art fairs, galleries and this group have been collecting for more print media for information on art and col- than 20 years, and almost as many refuse lectables. Traditionalists are particularly to disclose any information with regard to interested in information on individual the value of their collection. Two thirds artists and in questions concerning the say they do not collect systematically, but handling of artworks and collectables. ”based on gut instinct“. Topics such as general market develop-

18 AXA ART AXA ART 19 TYPE III: INVESTORS – COLLECTING FOR THE PORTFOLIO

Art prices are being followed like stock quotations

In recent years, a third type has joined Who are the ”investors“? Three further motives for What do they collect? the classic types of art aficionados and collecting art are particularly traditionalists: a rising number of collec- Investors wouldn’t collect art if they didn’t important for the investor The ”investors“ have a slightly less mar- tors does not only buy art for idealistic appreciate it – like the other two types of type: ked preference for contemporary art than reasons, but also as an investment as- collectors, they love to own beautiful the other groups. Three quarters collect set. things and give this as one of their most · collecting as an investment contemporary art, but a large minority of important motives for collecting. opportunity 43 % also purchases modern and impres- A wide range of information services is · joy of speculating with artworks and sionist art. As for the type of object, targeted specifically at this group: every Another core motive, however, clearly dif- collectable objects investors have clear preferences: 91 % year, rankings like the ”Kunstkompass“ ferentiates them: · opportunity to express one’s own collect paintings, while sculptures and (which fittingly appears in a management, position in society works on paper trail well behind, each not an art magazine) list ”newcomers“ attracting 57 % of collectors. Only a mino- and ”classics“ among contemporary ar- ”I would like to protect Thus, investors regard art, at least to rity of investors purchase other types of tists like a stock exchange report. Speci- my assets by diversifying some extent, as a part of their assets collectables such as photography, alized websites publish price curves and and doing something else and as a status symbol; they judge it ac- watches and jewellery or furniture. ”exhibition points“ of individual artists with my money rather cording to criteria such as value perfor- like stock quotations. Such information than investing in property mance and conservation of value. services are targeted at a new type of col- and financial markets.“ lector – the ”investor“.

Investors primarily buy paintings – contemporary, modern and impressionist

20 AXA ART AXA ART 21 Methodology of the Collectors Survey by AXA ART Hunting for bargains on auctions and the Internet Belgium: 63

Netherlands: 54

United Kingdom: 67

Germany: 129 United States: 124 Italy: 40

Asia: 23

other American states: 55 Australia / Spain: New Zealand: 9 37

France: Africa: A relatively large proportion of this group Where and how do investors 198 11 has been collecting for five years or less, collect? Switzerland: other European 47 states: 57 and they are cautious when it comes to judging their own expertise on the subject For investors, in contrast to other collec- of art – one in five admits to having ”little“ tors, auctions as a source for purchases or ”hardly any“ expertise in this area. are nearly as important as galleries. As this group regards personal contacts and Market research institute: Therefore, they rely less on content- the exchange with others as rather less infas Institut für angewandte Sozialwissenschaft GmbH based strategies when building their col- important, they relatively rarely visit art lection. They rather collect unusual or fairs or artists’ studios. Instead, inves- Type of survey: rare objects that are valuable and very tors buy art on the Internet more often International, multilingual online survey. Please note that the survey was conducted likely to increase in value – and they fol- than the average collector – two thirds of online and therefore represents a specific subset of art collectors. The geographical low their gut instinct. this group buy artworks ”in isolated in- focus was on the principal markets of AXA ART (United States, Germany, France, stances, many times or (almost) always“ United Kingdom and Switzerland). online. Field period: Also, they relatively often seek the advice January 28 to February 25, 2013 of specialized art consultants, and they extensively use online media as sources Sample size: of information. Their primary interest, of n=972 course, is information on individual ar- tists, general market developments and new trends, as well as the value and esti- mated performance of specific art ob- jects and collectables.

22 AXA ART AXA ART 23 IMPRINT Published by: Production (v.i.S.d.P.): Silke Kastien AXA ART Versicherung AG Editor: Sofia Blind Colonia-Allee 10-20 Layout: www.twoculture.eu 51067 Cologne Germany www.axa-art.com

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