Editor’s Note
This article highlights Christie’s resilient 2023 performance, where strategic focus on private sales and, notably, a record-breaking luxury auction segment helped counter broader market headwinds.
Christie’s 2023 Performance and the Rise of Luxury Auctions
In 2023, despite an uncertain macroeconomic environment and a contraction in the art market, Christie’s achieved significant results. Its global annual sales total reached $6.2 billion, a 7% decrease compared to 2022, but its estimated private sales total increased by 5% to $1.2 billion. The auction average sell-through rate remained robust at 84%, and above all, the luxury auctions shone. They achieved a record annual sales total of $1 billion, demonstrating their growing presence.
The Role of Kim Hyo-young, Christie’s Asia Luxury Managing Director
Behind the impressive performance of the luxury auctions was the active role of Kim Hyo-young, Christie’s Asia Luxury Managing Director. The Christie’s Asia luxury auctions she spearheads have been sailing smoothly, exceeding HK$2 billion in annual sales for three consecutive years.
“I stepped into the auction world around the time Korean contemporary art, led by Dansaekhwa (monochrome painting), was gaining global attention. I was able to gain special experience not only through art auctions but also by preparing exhibitions introducing masters like Lee Ufan and Park Seo-bo. Although it was just a modest contribution to the long-standing efforts of the Korean art scene, I am applying that experience as a market maker who pioneered and expanded a new market to the rapidly growing luxury auction sector.”
The Expansive World of Luxury Auctions
While Christie’s is often associated with masterpieces from art history and high-priced contemporary art works, the world of luxury auctions is equally vast and deep.
“It is largely divided into four categories: Jewelry, Watches, Wine & Spirits, and Handbags & Accessories. The Jewelry category includes stones (gemstones), and recently, colored diamonds have shown notable movement in the market. In Wine & Spirits, wine accounts for a high proportion, but in mainland China, Maotai liquor is also very popular.”
Handbags & Accessories is a relatively new category.
“Last November, it became a topic of discussion when we gathered all four colors of Hermès’s Birkin Sellier Faubourg edition together for the first time at an auction. Christie’s has continuously evolved to meet customer needs, and from that perspective, there is room for category expansion in the future—across the entire high-end lifestyle spectrum, including audio, musical instruments, and automobiles.”
Christie’s Competitive Edge in the Luxury Market
While the channels for trading art works haven’t changed much from decades ago, platforms dealing in second-hand luxury goods have noticeably increased in recent years. In today’s fiercely competitive luxury market, what is Christie’s unique weapon?
“Top-level specialists check the authenticity and condition of products. Appraisal ability is proportional to hands-on experience, and there is likely no other place that receives as many consignment inquiries as Christie’s. Furthermore, Christie’s thoroughly verifies product provenance and ownership history. Offering high-quality products that meet all conditions for auction is Christie’s principle and the secret to maintaining its reputation.”
Notable Sub-Categories: Independent Watch Brands and Vintage Jewelry
She highlighted independent watch brands and vintage jewelry pieces as noteworthy sub-categories for readers.
“The ‘F. P. Journe’ tribute auction held in Geneva last May achieved a 100% sell-through rate. While there were several reasons for this excellent result, it can be seen as an outcome of the increasing number of customers who prefer unique pieces that reveal their individuality, driven by the diversification of tastes. Korean and Chinese customers starting to seek vintage jewelry pieces is in the same context. As interest in unique pieces is rising, I believe there is merit in enjoying and collecting them.”
New Generation of Collectors and Digital Strategy
According to Christie’s global annual results press release, 36% of new clients in 2023 entered through luxury auctions. 34% of new clients were Millennials, and Gen Z new clients increased by 65% compared to the previous year. 66% of new clients came through online auctions. Luxury-New Clients-MZ Generation-Online. It’s interesting how these keywords connect into a single line.
“Luxury auctions have become a major gateway for new clients to enter the auction world. Luxury products are easier to approach compared to art works. However, Christie’s hopes that clients will develop interest in various categories and enjoy auctions. Given that a significant portion of new clients are the MZ generation, familiar with online platforms, strategies for them are emerging. For example, Christie’s is the only major auction house that separately operates Japanese and Korean Instagram accounts to provide country-specific content. We manage our Xiaohongshu (China’s Instagram equivalent) account the same way, and our follower count is higher than some top-tier luxury brands. While preparing educational content through the Christie’s Education department, we are also creating opportunities to experience art and auctions up close, such as the ‘[Flesh and Soul: Bacon/Ghenie]’ exhibition during Frieze two years ago and last year’s ‘[Heads On: Basquiat & Warhol]’ exhibition.”
2024: A Special Year for Christie’s Asia
2024 is set to be a special year for Christie’s Asia, as it prepares to relocate and expand into The Henderson tower, Hong Kong’s new landmark.
“We expect the new auction hall, galleries, and client reception spaces to serve as an art hub for collectors. With a base that fully embodies Christie’s values, our business will become even more diverse. If I have a wish, it’s that people visit the auctions and events we prepare without hesitation. They will discover that auctions are not that difficult and are another way to enrich life with art.”
