This past season at Xanadu Gallery has defied the notion that the art market is in terrible shape. Despite widespread concerns about economic challenges and a sluggish market, our experiences have provided a different perspective. Our Scottsdale season typically runs from mid-October, when the cooler weather begins, until the end of May, just before the temperatures rise above 105 degrees. This time frame is essential for us, as it sets the rhythm and volume of our sales, marking the peak of our gallery’s activity.
Reflecting on this period, I would dub it “The Season That Got Better.” The season seemed divided into two distinct halves. The first half mirrored the sluggish trends of 2023, a year marked by a notable decline in overall sales, down between 20-25%, and even more when excluding our online sales. The decline was partly due to the economic climate, inflation, and the fact that a few of our top-performing artists produced work that didn’t resonate as strongly with our clients, through no fault of the artists themselves.
However, as we moved into 2024, things began to shift positively. Our total sales from October through April increased by 13% compared to the previous year, a significant rebound indicating a promising trend. The latter half of the season, from January to April, was even more impressive, with a 30% increase in sales compared to the same period last year.
This season has provided us with valuable insights into the art market’s dynamics. One of the notable trends was the resurgence of higher-end sales, particularly in the $2,500 to $10,000 range, which collectively accounted for about 35% of our total sales. This shift significantly contributed to the overall increase in our average order value, which rose by 45% to $680.
Interestingly, while our total sales increased, we observed a slight decline in our online and social media sales. This dip is primarily attributed to the reduced time and energy we could allocate to social media marketing due to the higher in-gallery traffic. Despite this, our efforts in social media marketing have proven beneficial, with a notable return on investment even with a 60% reduction in ad spend this season.
Our data also revealed that 30% of our sales were to returning customers, highlighting the importance of maintaining strong relationships and consistent communication with our existing clientele. This underscores the value of our weekly newsletters and social media interactions in keeping our gallery top of mind for our customers.
Our sales this season were almost evenly split between contemporary and traditional art, indicating a balanced demand among our clientele. This distribution reflects the diverse tastes of our customers and the eclectic mix of artists we represent. Additionally, wall art made up 63% of our sales, while sculptural pieces accounted for the remaining 36%.
It’s important to note that these figures specifically reflect our gallery’s sales and don’t represent the broader art market trends. Our unique selection and the subjective judgment involved in categorizing the art contribute to these results.
Visit https://art.xanadugallery.com/collections to view the range of work we carry.
For artists, these insights offer crucial takeaways:
- Adaptability and Resilience: The ability to adapt to market changes and consumer preferences is vital. Our collaboration with artists who were open to feedback and willing to adjust their creative direction led to a significant rebound in their sales.
- Building Relationships: Cultivating relationships with galleries and maintaining consistent communication with collectors can substantially impact sales. This season’s data reinforces the value of repeat customers and the importance of engagement.
- Marketing Efforts: Diversifying marketing efforts across in-gallery promotions, social media, and newsletters can help balance sales channels and ensure steady engagement with potential buyers.
As we look forward to the next season, our focus remains on leveraging these insights to continue our growth trajectory. Running a gallery is a journey filled with ups and downs, but with each season, we learn, adapt, and strive to provide our artists and collectors with the best possible experience.
I would love to hear from you. What trends are you seeing in your own sales and creative processes? Do you have any questions about the sales data I’ve shared or the strategies we’ve implemented? Your experiences and insights are invaluable. Please share your thoughts and questions in the comments below.