The secondary art market is a rich and diverse ecosystem, housing a wide range of artworks, from high-value pieces by contemporary masters to more affordable four-color offset lithographs. This diversity adds a layer of intrigue and inspiration to the market, making it a fascinating space to explore.

Understanding Primary and Secondary Markets

To grasp the concept of the secondary art market, it’s essential first to understand the primary market. Essentially, a primary sale is the first transaction where art is sold. However, the distribution chain can complicate this definition.

A straightforward example of a primary sale is when an artist sells directly to a collector. The situation becomes complex when an artist makes a wholesale sale to a gallery, which then offers the work at full retail. In this case, the gallery’s retail sale is still considered a primary market transaction.

Defining Secondary Market Sales

A secondary market sale occurs when the original buyer resells the artwork. While collectors most often initiate these sales, there are instances where galleries put pieces directly into the secondary market. This situation typically happens when a gallery has excess inventory or low demand for specific works.

Secondary art market venues range widely, from prestigious auction houses and private dealers to established brokers and online platforms like eBay. In recent years, online marketplaces like artbrokerage.com have become significant players in the secondary market, offering a vast selection of works from various artists.

The Divided Art Print Market

The art print market, a significant component of the secondary market, is divided into two main categories:

1. Traditional fine art prints: These include etchings, woodcuts, aquatints, engravings, serigraphs, and stone lithographs. Their value often stems from their limited nature and the craftsmanship involved.
2. Reproductions of original art: This category includes giclées and other digital prints. Some refer to this as the decorative art market, especially for open editions and posters.

Perspectives on these categories often depend on one’s position in the market. Traditional printmakers might view giclées as decorative reproductions, while digital artists may consider their work fine art.

The Impact of Print-on-Demand (POD)

The advent of Print-on-Demand (POD) technology has significantly reshaped both the primary and secondary art markets. By enabling artists to offer their work without substantial upfront investments or inventory management, POD has democratized the art market, allowing more artists to reach a global audience.

While some worry about the impact of POD on the perceived value of limited editions, especially for lesser-known artists, it’s important to consider the broader opportunities it presents. As art marketing expert Barney Davey points out, “Giclée prints will broaden your product line, give your work more price points, introduce your work to new customers, and more.”

Drawing an analogy to the fashion industry, one can compare giclées to prêt-à-porter (ready-to-wear) lines. Just as haute couture designers create ready-to-wear collections to reach a broader market, artists can use giclées to make their work accessible to collectors who might not be able to afford originals.

Key benefits of embracing POD and giclées include:

• Expanding your market reach
• Offering various sizes and formats to suit buyer preferences
• Creating multiple price points for your work
• Opening doors to licensing, hospitality, design, and healthcare markets
• Introducing your art to new potential collectors

However, maintaining quality standards is crucial. To ensure your reproductions meet high-quality standards, we suggest working with a professional fine art digital printing atelier, such as Digital Arts Studio in Atlanta.

While POD and giclées aren’t a cure-all for artwork that isn’t selling, they can be powerful tools for artists whose work resonates with buyers but may be out of reach price-wise. By thoughtfully incorporating POD into your art business strategy, you can create new opportunities for growth and connection with a broader audience.

As with any business decision, it’s essential to consider how your use of POD might impact the long-term value perception of your work. However, with careful planning and clear communication with your collectors, POD can be valuable to your artistic practice and business model.

The Secondary Market in the Digital Age

The secondary art market has undergone significant transformation in the digital era. Traditional market health indicators, such as print advertisements in art publications, have largely disappeared. In their place, online platforms have emerged, expanding opportunities for secondary market sales and changing how art is bought and sold.

Platforms like artbrokerage.com have become major players in the online secondary market, offering a vast selection of works from various artists. These digital marketplaces provide greater accessibility and transparency, allowing collectors to research prices and availability more easily.

No Guarantees in the Secondary Market

However, it’s crucial to understand that the secondary market doesn’t guarantee appreciation in value, especially for digital prints and reproductions. The ease of producing high-quality digital prints through Print-on-Demand (POD) technology has, in many cases, negatively affected the perceived value of limited editions in the secondary market, particularly for lesser-known artists. This abundance of easily reproducible art has made it challenging for many digital prints to maintain or increase their value over time in the secondary market.

A significant point for artists to consider is that they generally don’t benefit from price increases in the secondary market. While California passed the Resale Royalty Act in 1976 to address this issue, its enforcement must be more consistent and legally challenged. In 2015, the Ninth Circuit Court of Appeals deemed the law unconstitutional as it applied to out-of-state sales. As of 2024, the practical impact of this law remains limited, and artists should rely on something other than it as a significant source of income from secondary market sales.

While resale royalties are more common in some European countries, they have not gained widespread traction in the United States. This realization means that American artists must carefully consider their pricing and edition strategies in the primary market, as they’re unlikely to benefit from future resales of their work.

Challenges in the Secondary Art Market

Several factors have contributed to changes in the secondary art market:

• Continuous production: Artists who consistently release new editions may inadvertently lower the resale value of their earlier pieces.
• Limited editions: While smaller editions (200 or less) seem like a solution, they can cap an artist’s income and create pressure to produce new work or raise prices continually.
• Market shifts: The secondary market for art prints, particularly giclées, has declined. Many secondary market brokers now offer prints below their original price.

Despite these challenges, the digital age has opened up new possibilities for artists to engage with the secondary market. Some artists use blockchain technology to track their digital works’ provenance and sales history, allowing built-in resale royalties. Others leverage social media and online platforms to maintain connections with collectors, indirectly influencing the secondary market for their work.

The Future of the Print Market

The trend is moving towards open editions, particularly for digital prints. This shift may impact the secondary market for fine art print reproductions, potentially depressing prices and making art more accessible to a broader audience.

For artists considering entering the print market:

• Weigh using giclées or POD as a medium to sell more work.
• Rather than focusing on limited editions, consider keeping editions open.
• If you offer limited editions, consider small runs with unique features like hand-embellishments.
• Be transparent about your edition strategy to avoid conflicts with buyers.
• Consider working with a professional fine art digital printing atelier, such as Digital Arts Studio in Atlanta.

Conclusion

While the secondary art market presents challenges, it also holds significant potential for artists and collectors. As the market continues evolving, artists must position their work strategically. The focus is shifting towards selling art for its inherent value and enjoyment rather than as a potential investment. This shift should inspire hope in artists and excitement in collectors about the new opportunities it presents.

For artists considering their long-term career strategy, a deep understanding of the dynamics of the secondary market is crucial. While it may not always lead to direct financial benefits, a healthy secondary market can significantly enhance an artist’s reputation and the overall value perception of their work. By building strong relationships with collectors and galleries, creating high-quality work, and developing a clear narrative around their artistic practice, artists can positively influence their performance in both the primary and secondary markets in the digital age.

Understanding these dynamics can help artists make informed decisions about their print strategies and engagement with primary and secondary markets. While the secondary market doesn’t guarantee appreciation in value, it continues to play a crucial role in the circulation and accessibility of art.