At Xanadu Gallery, we’ve been navigating the ebbs and flows of the art market for nearly two and a half decades. The journey through 2023 was as enlightening as it was challenging. Let’s take a moment to reflect on these experiences and ponder what they mean for us in 2024.
2023 in Review: Trends and Transformations
Our total sales for 2023 showed a decrease of approximately 8-10% from 2022. This downward shift wasn’t an isolated occurrence; 2022 also recorded a slight dip from the sales highs of 2021.
Several factors contributed to these fluctuations. The year 2021 was exceptional, marked by a surge of pent-up demand as we emerged from the pandemic. This resulted in record sales, setting a high benchmark that proved challenging to maintain. In contrast, 2022 and 2023 displayed a continuation of a softening trend in the art market. This trend could be partly attributed to broader economic conditions and a sense of cautiousness among buyers. While the short-term market has trended downwards, the longer-term is still positive, with total sales still up significantly from the mid-2010s
Year-over-years Sales for Xanadu Gallery
The Rise of Online Art Sales
Our push into social marketing had a huge impact on our total sales this year. Online sales, largely driven by our social marketing campaigns, accounted for nearly 35% of our total revenue, up from only 10% in 2020 . This surge underscores the need for a robust digital strategy in the current art market.
The Importance of Diverse Offerings
Diversifying our gallery’s offerings proved beneficial. While high-value art saw a dip, mid-range and affordable artworks found their audience. This approach not only helped in weathering market fluctuations but also catered to varied buyer preferences.
Interestingly, both wall art and sculptures maintained a healthy balance in sales. This variety indicates a broad spectrum of interest among buyers, highlighting that the market has space for diverse artistic expressions.
Forward into 2024: Strategy and Focus
Looking ahead, our strategy at Xanadu Gallery involves building on these insights:
- Expanding Our Digital Footprint: We’re set to enhance our presence on social platforms like Facebook, Instagram, and exploring possibilities with YouTube to connect with wider audiences.
- Global Outreach: Recognizing art’s universal appeal, we plan to extend our reach to international markets via social advertising.
- Embracing Tech Advances: Implementing AI and automation will streamline our operations, enhancing customer relations and artist interactions.
- Deepening Relationships: Fostering strong connections with both our online clientele and in-gallery visitors remains a key focus.
An Invitation to Our Artist Community
As a gallery owner, my perspective is just one side of the story. I’m eager to hear from you. How did you navigate the challenges and triumphs of 2023? What are your expectations and strategies for 2024?
Your experiences and insights are invaluable. I invite you to share your stories, ask questions, and engage in a conversation by leaving a comment below. Here’s to a great 2024!
Thanks Jason for sharing your stats with us 🙂
Very interesting read and thank you for sharing! My sales are a combination of public installations and fine art. The fine art sales really follow the same trajectory that you show in your statistics.
Thank you so much. This information is quite valuable to me as an artist. I love the graphs. It gives insight and helps me to plan size and type of art I produce in the future.
You are VERY wise to expand your digital footprint to reach a BROADER AUDIENCE as many are suffering due to record high inflation and a failing economy leaving them with less, if any, excess spendable income at the end of the day. This is evidenced by affordable artworks finding their audience. Basic necessities are rendering many unable to purchase art at all, including the lower price ranges.
***Thank you for your very informative emails and I wish you a Happy and Blessed New Year in 2024.
Happy New Year! Thank you for your intriguing and thorough report. It’s instructive, informative, and inspiring. And for artists navigating these changing tides, your insights are particularly valuable. Your shift towards a stronger online presence resonates with my observations and experiences. Embracing digital platforms continues to open new avenues for showcasing and selling art, a growing trend that I believe will continue to shape our industry.
Your focus on diversifying art offerings is a strong hint for artists to do likewise and also to explore different mediums and styles to reach a broader audience. It’s encouraging to see such a well-respected gallery like Xanadu acknowledging and adapting to these shifts in the art market. I’m looking forward to seeing how these strategies evolve in 2024 and beyond, and I’m excited to be part of this vibrant community that continues to innovate and inspire. Here’s to a prosperous and artful year ahead!
Thank you for this site Jason. I have enjoyed and found useful, all of your articles. These past two years have been very slow for me, but I feel like things are coming together at the same time.
Thank you for sharing this! My takeaway is to make sure to have a variety of price points. People want to buy art, but they need to find a piece that fits their budget.
After reading your post, I reflected on my sales this past year – all at different price points. However, I did find one commonality – in-person sales. Art collectors tend to my work in person versus online. In other words, when they see it, they buy it. I had very little online sales of original work. For me, this means, I need to find more opportunities for buyers and collectors to view my work in person or create means to see my work virtually other than in an online exhibit or when I post about a new piece.
Thank you, again, and here’s to a productive and prosperous 2024!
Really appreciate you sharing this data with us. Seeing the price point / market share is very interesting……and will help me in planning a strategy going forward. sf
Your pie chart indicates that 46% of your sales come from the items in the 101-250 dollar range but I don’t see many/any of those items on your web site.
Are you selling ice cream cones and snacks in the back?
Hi Kent – Had to chuckle I admit…. would the Xanadu Gallery maybe sell prints or ornaments, or small art pieces that are not featured on the website?
https://art.xanadugallery.com/collections/houston-llew-spiritiles
https://art.xanadugallery.com/collections/ancizar-marin-wall-climbers
https://art.xanadugallery.com/collections/charles-adams-and-thomas-widhalm
My sales of originals are less but online sales of prints is building. This may tie into your gallery’s 101-250 dollar price points
Always great to hear your insights Jason- certainly given the fluidity right now. Food for thought ~ Thanks! ~
Thank you for your openness in discussing this! As a former statistician, I applaud not only what you’ve shared with us, but your analysis of it as well. These are not just numbers; they’re a picture. What is that picture telling us? Your article is going to help me revise my plan for the year.
So very helpful Jason…appreciate you navigating the art landscape for us. Wishing you and all us artistic beings a fantastic 2024. 😀
Love your graphics and analysis of where art stands today. It gives me something to consider in future projects and my approach to the internet market. I appreciate your time and insight you put into these blog posts. They are very informative! Happy New Year!
It is always interesting to see what is happening with other art businesses. Thanks so much for sharing.
It seems that increasing digital footprints is a very important step to take in the art market today.
Your excellent analysis report has confirmed my thinking of how inflation has impacted everyone’s purchasing in all markets. Even families with very high incomes have been extremely selective on what they buy; and art does not fall on their list of necessities, but rather falls last on their list of luxuries. Although fearful of expanding my digital footprint on platforms for various reasons, last year I started only with one platform as I’m new to the experience.
I believe the suggestion above is a great one for artists to diversify art offerings and explore different mediums and/or styles. In 2023 it has already expanded my creativity! I plan also to change my price points and my website this year. Thanks very much!
Very interesting read. We artists all have our own unique journey through the art scene.
I was in sales for 40 years, and have never been apprehensive about talking to people. I was always pretty good at drawing, but I never pursued it. I never took an art class. As a hobby, I painted portraits of birds, animals and people onto glass Christmas Balls, and gave them as gifts to my family.
In 2011, I went to work at a large car dealership. One of my co-workers had a new baby, and I painted his portrait on a ball, and gave it to her as a shower gift. She showed it around to other people at the dealership, and I began to receive orders. I was in business. In 2019, I began painting on canvases.
I have two areas of concentration, portraiture and landscape painting. As an active outdoorsman, I paint a lot of landscapes featuring people doing some activity, such as hunting, fishing, camping, etc.
Another young co-worker helped me to set-up my website. At the same time, I joined my local Artist’s Association, so that I could exhibit my paintings at their gallery.
Whenever I did a painting, I would show it to everyone at the car dealership. I agressively marketed myself in-person. Each holiday season, I made good extra money from art sales to co-workers. Even though I retired from car sales in 2020, to this day, I still visit the dealership, to drum-up business.
In 2023, I began to explore social media. Whenever I did a painting, I posted a picture of it onto 4 different local Facebook group pages. I always include my webpage in the post. 2023 was the first year that people actually reached out to me to buy my art.
For instance, one day I took some photos of some guys using metal detectors in a field near a church, and did a painting of it. I found a Facebook page dedicated to metal detecting, and posted my painting on that. A fellow bought it after he saw it.
You name the hobby, and there is a Facebook page dedicated to it. Although some pages don’t allow sales, many do.
I haven’t even scratched the surface. My next goal is to figure out Instagram and other methods of social media marketing.
I will be 70 this year, and I am intimidated by computers. I have been fortunate to have worked with youger people who are proficient with technology. I like to use the barter system with them. I’ll do a painting for them, in exchange for help with my webpage and/or social media marketing.
Self-promotion, social media marketing and art all require creativity, and thinking outside the box. I’m excited about 2024.
Another factor that seemed to affect sales in 2023 and, to a lesser extent, 2022, is the housing situation. When folks purchase a new home they often buy art with which to fill it. I live and show in a seasonal tourist area so second homeowners have traditionally been a significant portion of art buyers, with some purchasing multiple pieces of art for their new vacation home. The current lack of housing inventory, rising homes prices and mortgage rates have brought that segment of the market to a screeching halt.
There’s no question that our sales have been down and we are working harder for each sale. Several of the shows that I participated in this year had very low attendance overall. It felt like people were staying away, so they weren’t tempted to spend the money. My thoughts on this beyond just offering lower priced items, as in any recession, the do it yourself market tends to go up as people reflect on the cost of having things made for them. I was able to expand my do it yourself kits this year and began selling supplies for people to create their own Bead mosaic art. Those sales are soaring and balancing out the slower months of sales of my original artwork. It’s a different way to look at a good solution. As more people try creating this type of art on their own they will realize the value of my finished original artwork as well. So hopefully in the long term it will work to my benefit Selling original artwork. As well as benefiting from the market. We do what we need to to survive.
My glass art sales in my $575 – $1800 range were down this year. My $30 octopus ornaments were pretty good, about the same as last year.
$5 – $35 watercolor stationery sales were very good, and at Art in the Burbs, a local annual school fundraiser art show, I broke my all time sales record for small-medium sized shows. Last year my profits there were $614, this year $886.
Well into my 60s now with a retired husband, I am focusing on increasing the quality of my paintings (representational). Having moved to the West in 2020 offers exciting new scenery for my landscapes. My desire it to work with a gallery where I can drive to to drop off work. I’ve sold some work from my website in 2023, but am less inclined to sell independently as I’ve done i former years.