Online Sales and Business Model Innovation in Art Markets

A Case Study

Bibliographic Data

ID5933041
AuthorsAlexandra Fernandes (0000-0003-3951-1468, Iscte – Instituto Universitário de Lisboa, corresponding author), Luís Urbano Afonso (0000-0002-9394-8954, University of Lisbon)
Year2020
Volume9
Issue2
Pages7
Publication date2020-01-21
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSocial Sciences (JOURNAL)
Journal identifiersISSN: 2076-0760 • E-ISSN: 2076-0760
PublisherMDPI AG (PUBLISHER • IT)
DOI10.3390/socsci9020007
OpenAlexW3002979113
LanguageEN
Citations received2
References cited9

Every year online sales represent a higher percentage of the sales total in nearly all sectors of the economy, and the art markets are no exception. However, there are few empirical studies showing how online sales and digital technologies are transforming the art markets at a micro-level. This study is based on the detailed examination of the financial performance of one of the two largest Portuguese auction houses, Cabral Moncada Leilões (CML), over a period of twelve years (2007-2018), complemented with interviews with its top-managers. It analyses a set of financial indicators (e.g., EBIT, ROA, EQUITY, sales volume, net results, etc.), along with some markers that are specific to the auction sector (e.g., average lot value, number of auctions per year, etc.). From this analysis it is possible to conclude that the deterioration of this company's financial performance was the driving force that led it to explore the potential of digital economy. In the process, its business model changed dramatically, leading the company to a different market position and to the enlargement of its national and international customer base

Business · Business model · Common value auction · Customer base · Economics · Electronic business · Equity (law · Art History and Market Analysis · Auction Theory and Applications · Cultural Industries and Urban Development · Marketing

Tools

Open DOISci-HubOpen Access