As Retail Tanked During The Coronavirus Pandemic, Auction Houses Cranked Out Impressive Sales

Online auctions are proving to be pandemic proof. Traditional retail has taken a hit during the pandemic due to temporary brick and mortar store closures and only some of those sales transitioned online. But auctions – typically held in-person with a history of call-in and online bids – hardly skipped a beat during the downturn. A tech-friendly younger bidding population, eager for some high-takes auction excitement while stuck at home, is largely to thank.

“There was zero resistance to pushing the sale exclusively online; and none of our consignors pulled their merchandise out either,” said Kimberly Burt, vice president of marketing at Hindman Auctions. Originally scheduled live for April, the Chicago-based auction house pushed their sale of fine jewelry and watches online to May and sold 100% of items offered.

Clients participated in the sale from home, driven by a sense that “if you aren’t online you are missing out, ” said Burt. She noted that an astute collector coveting a 1950s Van Cleef bracelet, for instance, knows it may not come to auction again soon and seizes the opportunity.

Similar participation levels were seen at Bonhams, which held a five-part luxury online sale that wrapped June 1^st combining jewelry with watches among other luxury categories. It garnered registrations from 29 countries, including 40% first-time buyers and a third under the age of 40. Online auctions are proving a good way to attract new, younger clients “They are digital-savvy and access online sales literally in their hand,” said Vanessa Herrera, business director for Bonhams Asia.

For Hindman, the recent online auction actually saw a 26% increase in overall bidder participation in the spring jewelry sale compared to 2019. Remote methods – online, absentee and telephone bidding – all experienced upticks from the previous year.

Helping the sales along were staff specialists who segued from pre-sale condition reports via photos and taped videos to live interactive video conferencing to preview items of interest.

“Everyone was more comfortable with this approach as it was a more personal way to interact,” said Burt. Auction houses already sold more volume online than traditional retail which made the exclusively digital format a seamless transition.

Herrera noted the intimidation factor disappears online. “Collectors now access the sale from any continent, without having to travel from the comfort of their own home.”

She asserts the competitive nature which traditional retail doesn’t offer and most collectors, especially young ones, being comfortable with online purchases add to their success.

“Bidding is a thrilling, competitive game and added a surprise factor during the stay-at-home period. There’s a gratification in winning your trophy especially if you are outbid final count-down minutes,” she said.

An auction is considered to have done well at 85% sold and the May auction was a sell-out, which prompts Burt to assert “collectors are still collecting.” The top lot from Hindman was an oval brilliant cut diamond weighing 10.17 carats fetching $137,500 ,over the presale estimate of $70,000-90,000. A rare-to-auction Art Nouveau Louis Comfort Tiffany necklace sold for six times its presale estimate. A Patek Phillipe ‘Nautilus’ watch sold at $75,000, over its presale too. Bonhams sale boasted a pair of earrings and a diamond and sapphire necklace by Graff that drew $200,625 and $350,625 Hong Kong dollars respectively.

Convenience is key online as sales can be organized much quicker and clients can browse through several brands, styles and period in one place. Jewelry and watches do well in this format according to Bonhams due to how easily they can be inspected in the pre-sale condition appointments online and then shipped to the buyer. But the live auction hasn’t been forgotten. Bonhams has several live auctions planned this summer in Edinburgh, Hong Kong and Los Angeles in private ‘closed-door’ settings along with additional online sales.

Selling wasn’t the only part of the process to benefit from the pivot online. Timothy Long, director of couture and luxury accessories at Hindman’s, had live interactions with consignees and often spotted items in their closets that they didn’t consider presenting for auction. Thus, even more items went to auction thanks to the specialist’s keen eye for what’s currently in demand.