Personal luxury items ranging from diamonds to sneakers, even accounting for a third of sales at Sotheby’s last year, proves a supplemental revenue spinner that will help auction houses in tricky times. But as sales growth slows considerably in the global luxury sector, how reliable is this latest business line?
Although auction sales fell across the board last year, Christie’s biggest drop came in luxury goods, reaching 31% to $678 million in 2024. By comparison, art sales in the 20th/21st century fell by 15%, with the master sector at 29%.
The biggest drop among luxury items was a nearly 36% drop for jewelry, according to Arttactic, which refers to the underlying cause of Christie’s decline. In May 2023, the Geneva Surroom made $222 million from the jewelry sold out from the property of Austrian billionaire Heidi Holten. Sales of such a magnitude is extremely rare in this area, says Rahul Kadakia, head of Christie’s jewelry division. Christie’s last had a nine-figure collection in 2019 ($109 million from the Al Thani Royal Family in Qatar) Elizabeth Taylor’s gem earned nearly $116 million in 2011 That’s when.
According to Kadakia, if Horten’s sales are stripped, the number is “almost flat,” but in the fall of 2024, the best that is said is that this is better than a 26% total auction drop It’s about being there. And Christy won individual hits in 2024, including an “Eden Rose” Diamond Ring ($13.3 million) and a 12 bottles of Domaine Romane Conti.
While sales like this actually refer to the clear “money is not an object” buyer, the latest report from fashion business and McKinsey has McKinsey, a wider luxury sector, painted a gloomy picture. Luxury has been found to have grown faster than GDP between 2019 and 2023 (a compound annual growth of 5% including 9% during post-Covid bounce), but last year Peter came out and 2024 It is predicted that only 1%-3% will be posted between 2024 and 2024. 2027. This is still growth, but the report states that “dynamism in emerging markets such as the Middle East, India and other Asia-Pacific regions will not compensate for single-digit growth in luxury core markets such as China and Europe.”
Luxury loves that niche
At the same time, auction house executives are beginning to acknowledge the luxuries of the so-called “gateway drug” effect, that is, the category brings buyers that move on to fine art. Although Kadakia has success putting it at about 20%, the ring is true, his point is that luxury is the gateway to other luxury items. Too much. There are more paths to pursue here. Christie’s recently added classic cars to its product, but Sotheby’s has also been seduced by streetwear and sneakers. Areas adjacent to the art, especially memorabilia, have also proven useful.
Please look forward to more. While we can imagine a gorgeous travel and wellness experience coming up as auction houses adjust their products to meet the evolving preferences of buyers, don’t expect attention to landing anywhere for a long time . Consumers are well known for being whimsical, including luxurious levels, and there are plenty of options.
