Destination of international sales

**Figure 10.** The destination of international sales made by Brazilian galleries (by the absolute number of galleries). Data source: Graphic designed by the author. **Figure 10.** The destination of international sales made by Brazilian galleries (by the absolute number of galleries). Data source: Graphic designed by the author.

The realization of sales to such diverse destinations to different countries and institutions42 at a distance, through different new tools and platforms, which were not commonly used before the pandemic, is an important fact for thinking about internationalization processes in the post-pandemic context, where, it seems, many market agents do not intend to fully return to the previous business model, highly focused on frequent trips and participation in a large number of international fairs. Many of them declared to have the intention of balancing out the participation in in-presence international art fairs and online art fairs and to keep investing in their digital presence to reach international audiences. Another aspect that we would like to draw attention to is that the transposition of face-to-face activities into the digital environment allowed the galleries to remain connected with the international circuit and opened new business opportunities for some agents. However, we also note that the ability to reach internationally through digital initiatives is not equally distributed among the galleries and that this capacity is still closely related to the visibility and recognition achieved by the galleries before the advent of the The realization of sales to such diverse destinations to different countries and institutions<sup>42</sup> at a distance, through different new tools and platforms, which were not commonly used before the pandemic, is an important fact for thinking about internationalization processes in the post-pandemic context, where, it seems, many market agents do not intend to fully return to the previous business model, highly focused on frequent trips and participation in a large number of international fairs. Many of them declared to have the intention of balancing out the participation in in-presence international art fairs and online art fairs and to keep investing in their digital presence to reach international audiences. Another aspect that we would like to draw attention to is that the transposition of face-to-face activities into the digital environment allowed the galleries to remain connected with the international circuit and opened new business opportunities for some agents. However, we also note that the ability to reach internationally through digital initiatives is not equally distributed among the galleries and that this capacity is still closely related to the visibility and recognition achieved by the galleries before the advent of the pandemic.

ability to reach international customers in the context of social distance and restrictions on circulation is largely related to previously established contact networks. The most important sales were made mainly to recurring customers (29%) and contacts made at face-to-face fairs (18%), followed by sales made through marketplaces (17%), online fairs (14%), social networks (12%) and in-person at the gallery (10%), which shows that the digital transition is not enough to ensure this international reach (as it is not enough to

With these caveats in mind, it is worth noting that the presence in marketplaces and online fairs allowed some galleries to establish contact with customers and destinations never before reached. A young gallery, still in the initial process of internationalization, reported, for example, that a sale to South Korea was made through a marketplace.

keep the sales in the national market either).

pandemic.

The qualitative analysis of international sales made by galleries indicates that the ability to reach international customers in the context of social distance and restrictions on circulation is largely related to previously established contact networks. The most important sales were made mainly to recurring customers (29%) and contacts made at face-to-face fairs (18%), followed by sales made through marketplaces (17%), online fairs (14%), social networks (12%) and in-person at the gallery (10%), which shows that the digital transition is not enough to ensure this international reach (as it is not enough to keep the sales in the national market either).

With these caveats in mind, it is worth noting that the presence in marketplaces and online fairs allowed some galleries to establish contact with customers and destinations never before reached. A young gallery, still in the initial process of internationalization, reported, for example, that a sale to South Korea was made through a marketplace.

Even though it is hard to measure, the capacity of galleries to face the crisis is also related to some public policies. A significant part of art market players (71%) counted on resources and public policies to face the crisis caused by the pandemic in the first months of 2020. The initiatives mentioned most often were the support offered by the Association of Brazilian Contemporary Art Galleries (ABACT) together with Apex-Brasil, through the program Latitude43, which is a program that aims at the internationalization of the market, to secure a more relevant digital presence of galleries, mentioned by 30% of participants. Additionally, federal emergency credit to support employment maintenance and postponement of tax payment deadlines, mentioned by 18% of them.

Another aspect that called our attention refers to an artist's representation. The surveyed galleries represent a universe of about 1200 artists, or about 23 artists per gallery on average, a contingent that has not undergone significant variation due to the pandemic. There are great differences in scale of artists representation, small galleries representing only 6 artists, and, on the other end, a gallery with multiple sites, representing a total of 61 artists.

If the galleries retained the number of artists represented, as shown in Table 3, we can consider that the galleries, for the most part, did not reduce their size, scale and structure. It is also a sign of the resilience of the market.



Data source: The author, based on (Esmanhotto and Fialho 2020).

It is interesting to note that, on the one hand, there is significant stability in relation to the number of artists represented and, on the other, a clear indication of ongoing changes in the way galleries work with artists, suggesting the rise of new roles and new functions.

The stability of the artist's roster among the majority of galleries and the emphasis they gave to the improvement of communication and greater proximity with artists may suggest an effort made, by gallery owners, to keep and support artists during the crisis.

Galleries registering changes in the way they related to artists pointed out that they engage them in activities they did not use to participate before, mainly in the production of new contends for digital platforms<sup>44</sup> but also in building up strategies to respond to the crises, including some new sales activities.

The concern with strengthening ties and maintaining support for the represented artists was repeatedly affirmed by several galleries. However, this greater proximity to represented artists also derives from the understanding that artists could contribute to finding creative solutions to go through a period of crisis.

In addition to the change in the way of working with the represented artists, some galleries also reported that they are exploring new partnerships, taking advantage of the digital environment to develop special projects with artists who are not part of the represented artists team, with whom they wish to establish some type of collaboration and, eventually, a future representation.

Periods of crisis tend to bring artists to an even more uncertain condition (Menger 2012), and the responses of galleries can go towards two opposite directions: some galleries tend to work with more stable values, focusing their energy on promoting well-established artists and not committing to emerging ones. Others take a riskier path by welcoming new artists to the market and experimenting with new forms to work with them.

The research allowed us to identify significant changes arising from the context of the pandemic. More than half of the respondents (66%) registered some change in the way they relate to artists. Among the most frequent changes mentioned by market players are those related to the method of communication, the collaboration for the production of online content, the engagement of artists in the dissemination of content and sales actions. They also mentioned collaborative initiatives and partnerships involving artists represented, other galleries and art spaces, indicating greater proximity and closer exchanges. The galleries also mentioned the reformulation of the model of contracts, the reduction of aid for the production of works, changes of the monthly amounts paid, agreements allowing the direct sale of artists in their studios and some change of artists represented.

One aspect that was not detected in the majority of the group of galleries but still is worth notice is the flexibilization of contracts in terms of exclusivity of representation and also commercialization. Some galleries reported to have agreed artists could sell directly from their studios and participate in commercial initiatives led by other agents. This flexibility may represent a significant rupture in some conventions, in Howard Becker terms (Becker [1982] 2010, pp. 59, 113) largely adopted by art market players, such as those artists represented by galleries would not get directly involved in commercial activities and sales negotiations; artists represented by galleries would not sell directly to buyers; and more established galleries and artists would have a clear agreement about representation and territorial exclusivity, with strict contracts often set by the main gallery representing the artist, followed by secondary galleries.

We would like to suggest here that innovation and revision of conventions may be a process that starts with some players, the ones who dare to break conventions, and may spread among the market at large within time.

#### **4. Results and Discussion**

The art markets in Portugal, Spain and Brazil seem to overcome with innovation and resilience the external shock of the COVID-19 pandemic. In the previous period of crisis, art proved to be a useful tool for the recovery of the economy due to its symbolic value (Bourdieu 2011) and to its capacity of being a "resistance" commodity (Moulin [1967] 1989), potentially desirable for investors and collectors (Roque 2020a, 2020b).

In times of confinement and in the subsequent return to a "new normal" not yet generalized, the resilience of contemporary art galleries has manifested itself on two different fronts: on the one hand, in the immediate adaptation to the impossibility of face-to-face access, cancellation of exhibitions at their venues and participation in art fairs. Adapting to the digital environment is not so easy in all markets, especially in those where small and medium-sized galleries with reduced resources prevail, such as the Spanish, Portuguese and Brazilian markets. The absence of large platforms that facilitate digital access for galleries to the global environment of the international market hinders any strategy developed by galleries and makes it more valuable. On the other hand, the resilience of the galleries in the area we analyzed is shown in the immediate adjustment to an uncertain future in terms of the calendar of upcoming fairs, access to new markets and clients and new conditions in the commercial activity itself, with scarce support of public policies.

Going back to the questions raised in the introduction of this article of how Portugal, Spain and Brazil are responding to the new context, in these three countries, although their specificities in terms of economic development and cultural policies in the sector, art agents (gallerists, artists) are reacting with decidedness and adopting measures that can minimize the economic impact of the crisis. The adaptability of contemporary art galleries in the three countries, from their peripheral position in the global market, is demonstrating a capacity to overcome the crisis caused by the health emergency that we can consider resilient, quickly adapting to unstable conditions in the near future and preparing for an uncertain medium term in difficult economic and professional conditions.

Data analysis and field-based observation showed a strong commitment by gallerists in overcoming the pandemic crisis: during the lockdown, gallerists worked backstage and improving contents and communication digitally, strongly participating in art fairs hybrid models (online and in-presence) and marketplaces. Digital strategies are not sufficient alone, so they are combined with the intensification of communication with collectors and investment in proximity networks. Some other findings are related to specific contexts: the majority of Portuguese and Spanish gallerists claim financial support from the State for participation in international art fairs, which are important platforms for the internationalization of artists and market players amidst international museum directors, collectors and curators, and, indirectly, it is also relevant for the country as it represents an image of strong contemporary culture and cosmopolitan status. In Brazil, the sector shows a strong commitment to internationalization, despite the challenges and changes required to keep galleries international reach, and this seems to be a valuable lesson for contemporary art galleries based in Portugal and Spain.

Despite the variation in galleries' revenues, it did not impact on artists representation, nor in the employment sector. In operational terms, it is noticed a reinforcement of the strategy of promoting ties with usual and experienced collectors, although looking for new buyers is also a relevant action to follow.

Concerning the main changes identified in the art market's activities, the digital turn seems irreversible. Online sales increased significantly in the pandemic period, and there is still a great potential for growth as we believe that the use of this tool will normalize and streamline the art business, particularly in the highest categories of segmentation value. When we observe the use of digital tools on an international level, aggregate online sales of art and antiques reached a record high of \$12.4 billion, doubling in value the previous year. These high figures mean agents were looking for alternatives to the general market fall45. Digital platforms are becoming increasingly important in various markets domains, changing ways of production, circulation, mediation, and consumption of artistic proposals. Besides the overuse of this tool, many art agents seem not to be convinced that the virtual will substitute the face-to-face model (Anonymous 2020a), and some others advocate for a hybrid operating model on-offline.

According to many art market agents interviewed, digital art fairs did not bring great sales results so far, but they also cost much less, and most of them intend to continue to participate in future initiatives. Probably one of the long-term effects of COVID-19 will be a paradigm shift from the in-person art fairs to the hybrid models, both online and in-presence, as much as the downsized scale of these events, they may become more competitive and the reduction of the number of in-presence art fairs attendance per gallery.

Another important aspect of recent change detected by the research is the growth of collaborative initiatives and the revision of models for artists' representation, exhibitions, circulation and commercialization of artworks. Some of the changes here discussed were a response to the pandemic context, but nevertheless, they may not be circumstantial; in fact, they seem to be long-lasting effects that may transform the dynamics of the art market in the aftermath of COVID-19.

Regarding the most welcome strategies to overcome the external COVID-19 shock and considering the primary art market consensually as an economic driver, Portugal, Spain and Brazil have in common the challenge of stimulating political structures to implement measures capable of fostering the art markets sector in a systematic way. Enhancing the deficient policies in supporting fine arts and the contemporary art sector is critical for the three countries. A stronger convergence of private initiatives led by sectorial entities and public policy for the sector could represent a sign of confidence within society and create a positive dynamic between players. Among the policies, education towards arts and culture is a desirable structural action, as some of the reports still point to low levels of cultural practices, namely in Portugal. The articulation between the public and private institutions in the field of acquisitions involving private collectors and investors would be also desirable.

The findings presented in this paper refer to an ongoing phenomenon. The pandemic is not over, and its effects will continue to be felt within the cultural sector for a while. We hope our contribution to this publication will be a useful tool for further discussion and research. We believe that sharing knowledge and strengthening collaboration are valuable ways to contribute to the development of the art markets studies field. We hope this paper can also be useful for decision making, policy building and advocacy in favor of the recovery and further development of the sector in Portugal, Spain and Brazil.

**Author Contributions:** Conceptualization, A.D., and A.L.F., and M.P.-I.; methodology, A.D., and A.L.F., and M.P.-I.; software, A.D., and A.L.F., and M.P.-I.; validation, A.D., and A.L.F., and M.P.-I.; formal analysis, A.D., and A.L.F., and M.P.-I.; investigation, A.D., and A.L.F., and M.P.-I.; resources, A.D., and A.L.F., and M.P.-I.; data curation, A.D., and A.L.F., and M.P.-I.; writing—original draft preparation, A.D., and A.L.F., and M.P.-I.; writing—review and editing, A.D., and A.L.F., and M.P.-I.; visualization, A.D., and A.L.F., and M.P.-I.; supervision, A.D., and A.L.F., and M.P.-I. All authors have read and agreed to the published version of the manuscript.

**Funding:** This research received no external funding.

**Institutional Review Board Statement:** Not applicable.

**Informed Consent Statement:** Not applicable.

**Conflicts of Interest:** The authors declare no conflict of interest.

#### **Notes**


Sarmento, from 1977, also named "Survey to 60 artists," Sara and André surveyed 471 artists by email, addressing four questions about the COVID-19 representation, its impact on artists' life and work, and how they see the future after the pandemic crisis. There is a published version with the number of participants (263) (Sara and André 2020b) and an online version: Sara and André (2020a). Inquérito a 471 artistas. *Contemporânea*. Available online: https://contemporanea.pt/edicoes/inquerito-471-artistas/ inquerito-471-artistas (accessed on 17 May 2021).


promoting activity rather than a new core business for the gallery sector, but this too early to be sure about it. Some galleries are trying to "sell" digital content, workshops and talks, and the majority offer them for free.


#### **References**


Pérez-Ibañez, Marta, and Isidro López-Aparicio. 2018. Art and Resilience: The Artist's Survival in the Spanish Art Market—Analysis from a Global Survey. *Sociology and Antropology* 6: 221–36. [CrossRef]


*Resolução de Conselho de Ministros n*◦ *50/2021*. 2021. Lisboa: Diário da República n◦ 91/2021, Série I, May 11.

