What's Happening?
The 'buy-one, give-one' (bogo) sales tactic in the art market is experiencing a decline. This mechanism allowed collectors to purchase an in-demand artwork by agreeing to donate a second piece to a museum. The tactic was popular during the art market's
peak from 2021 to 2023, but recent market contractions have reduced its viability. Galleries are now more selective, focusing on artists with significant gaps between primary and secondary market values. The shift reflects changing dynamics among collectors, galleries, and museums, impacting young artists' careers and institutional acquisitions.
Why It's Important?
The decline of bogo deals signifies a shift in power dynamics within the art market. As galleries raise prices to align with auction sales, the value proposition of bogo deals diminishes. This affects collectors' access to contemporary art and influences museum acquisitions. The change may impact young artists' exposure and career development, as fewer works are donated to institutions. The evolving market conditions highlight the need for strategic adjustments by galleries and collectors, potentially altering the landscape of contemporary art sales and museum collections.
