A version of this article first appeared in CNBC's Inside Wealth newsletter with Robert Frank, a weekly guide for the affluent investor and consumer. Sign up to receive future editions straight to your inbox. Art house Christie's wants to tap into the next generation of wealth with online auctions, digital art and luxury goods, according to its new CEO. Bonnie Brennan, Christie's president of the Americas who will become CEO on February 1, told CNBC in an exclusive interview that the changing demographics of wealth are driving a new approach to the auction world. Brennan has been at the auction for 13 years and will replace CEO Guillaume Cerutti, who will remain chairman and take on a new role overseeing the artistic and cultural activities of Artémis, the holding company owned by the Pinault family from Christie's. Brennan said more than a quarter of Christie's buyers and bidders in America are now millennials or younger. The increase in younger buyers has also shifted growth to online sales, with 81% of all bidding at Christie's in 2024 coming through online channels. “We've seen such a big increase in millennial and Gen Z buyers,” Brennan said. “We have to make sure we are good listeners and know what they are interested in.” The auction house's luxury goods business – which markets everything from handbags to watches to jewelry – has been a strong source of new business from younger collectors, who often then move on to buying art. Brennan said sales of digital art and non-fungible tokens, or NFTs, will also make a comeback as crypto sees a resurgence in value and popularity, especially among the under-40 demographic. In 2021, Christie's sold artist Beeple's digital artwork worth $69 million, marking a historic moment in the art world and the height of the NFT craze. The digital assets have since fallen in value, leading to widespread losses and accusations of fraud and market manipulation. “We had this crypto winter where we didn't have as many NFTs after Beeple,” Brennan said. “But now that the crypto market is stabilizing and seeing some greenshoots, I still believe there is a long runway.” Another big draw for younger collectors are celebrity collections. Christie's sale of a collection of items once owned by Elton John, including his car, piano and silver platform boots, which sold for $94,500, totaled more than $20 million. “In America, celebrity sells,” Brennan said. The shift in wealth from the older to the younger generation is transforming wealth management, luxury goods and especially the auction and collectors markets. More than $100 trillion is expected to be passed on to younger generations and women in the coming decades as part of the Great Wealth Transfer. Combined with the growing earning power and technological fortunes being created among 30- and 40-somethings, the collectibles markets, which have been driven by baby boomers for years, are seeing a massive changing of the guard. Geographically, the US will remain a big growth driver for Christie's, accounting for 42% of the company's auction revenue last year, according to Brennan. Brennan's appointment as CEO after four years as US president is seen as an affirmation of the US's importance in the global auction market, especially as the Chinese economy struggles. “America is sometimes underplayed, but the backbone and stability of our market every season really comes from the Americans,” she said. In addition to attracting younger buyers and growing in the U.S., Brennan says Christie's also wants to expand its use of artificial intelligence. She said Christie's today primarily uses AI tools for HR functions and to help answer common customer questions. Over time, she hopes to use AI to “enhance the customer experience” and perhaps even help value and authenticate works of art. “It's a useful tool; it's not a replacement for people,” she said. “We also need the opinions of our experts. But AI will provide some really good data to look at and judge as an improvement.” Brennan said a stronger second half of 2024 is expected to continue or even accelerate this year. According to ArtTactic, global auction revenue fell 25% to $8.3 billion in 2024, down 40% from its 2022 peak. However, Christie's fared slightly better than many of its peers, reporting total auction revenue of 4, $2 billion in 2024, down 16%, while private sales were another $1.5 billion, up 41%. Art experts said the biggest drag on the market last year wasn't buyer demand, but the lack of great works for sale. Christie's said its 'sell-through rate' (the percentage of lots sold) by 2024 was a healthy 86%. The company sold its most expensive work at auction last year, Rene Magritte's 'L'empire des lumières', for $121 million. . It was the only work to be auctioned last year for more than $100 million. Brennan said the year 2025 is already showing signs of increased confidence among sellers. “We have so many customers in the pipeline, which tells me the market will be strong in the spring,” she said. “You never know what's going to happen, but I have a very good feeling about this year, especially about the first half.”
A version of this article first appeared in CNBC's Inside Wealth newsletter with Robert Frank, a weekly guide for the affluent investor and consumer. Register to receive future editions straight to your inbox.
Art house Christie's wants to tap into the next generation of wealth with online auctions, digital art and luxury goods, according to its new CEO.
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