Retail art sales jump, says study

Art Business News, August, 2003

WASHINGTON, D.C. -- Retail sales in the art and wall decor market topped $35.3 billion in 2002, a jump of 14 percent over 2000's $31 billion, according to a new consumer survey funded by the Art Publisher's Association (APA). It was part of a larger study conducted by Unity Marketing titled "Art and Wall Decor Report, 2003: The Market, The Competitors, The Future Trends" and will be presented at an APA meeting during DECOR Expo in Atlanta on Sept. 7.

According to the study, 42 percent of American households bought art in 2002 with distinct market segments buying for different reasons. "Art marketers and retailers are making a big mistake if they view art consumers as a 'one-size-fits-all' market of passionate home decorators," explained Pare Danziger, president of Unity Marketing and author of the book, Why People Buy Things They Don't Need.

"While home decorating will always play a role in why people buy art, today the majority of art consumers view the process as a more important decision than simply matching one's home decor or color scheme," Danziger said. "Art buyers today connect emotionally with the art they buy through the theme. That personal connection with the art takes precedence over whether it fits a particular space on the wall?"

The survey found that 55 percent of consumers are more interested in buying art today than they used to be. Fifty-four percent said art they buy and display is an important outlet for creative expression. And 53 percent said the way a piece makes them feel is more important than whether it matches their decor.

According to Danziger, the study indicates two emerging market segments which offer opportunities for art marketers--art connoisseurs and home decorators.

Art connoisseurs, representing over one-fourth of the total art market, are projected to be the most active buyers. "Their appetite for art is undiminished by world events, as they have been the most active segment buying art in the first quarter of 2003," said Danziger. "This segment is comprised mainly of affluent and highly educated baby boomers who view themselves as collectors, who shop primarily in art galleries and framing shops and for whom decorating takes a back seat."

Home decorators make up 28 percent of the market. "This segment is largely budget-minded young marrieds who have a need to buy art to fill empty walls in new homes," said Danziger. "Many home decorators expect to buy more art in the coming year and are likely to continue frequenting mass merchants and home furnishings and furniture stores for the already-framed prints they favor."

APA members will receive the report at no charge. PMA and PPFA members can buy a copy for $125. Non-APA members may purchase the report for $300. Unity Marketing's larger study is available for $2,250.

At the meeting in September, the APA will also present the results of the "Cost of Doing Business Survey." In it, the APA asked its member publishers to complete a confidential, detailed financial disclosure in order to determine industry averages. The presentation of the survey will highlight some of the most significant findings and discuss how members can use the information. Members of the APA who participated in the survey will receive a free copy. Members who did not participate and non-members may purchase a copy.

Two discussion groups are also planned for the APA meeting. One will examine the effect of alternative wall decor on the art industry. This growing category utilizes licensed imagery (but often not prints) and is often produced in Asia and hung unframed, according to the APA. The second discussion group will focus on limited editions.

The meeting will take place from 8:30 to 10 a.m. in room C109 at the Georgia World Congress Center. For more information, call 800-762-9287.