Alice Rawsthorn Looks at the State of the Design-Art Market

The International Herald Tribune‘s Alice Rawsthorn surveys the waterfront for the rocky field of selling design prototypes:

Why then are so many design dealers so alarmed about the prospects for the Design Miami design fair opening Wednesday in Florida? “I’m terrified,” admitted the owner of one European gallery. “It costs us a fortune to show there and to ship everything over. In the current climate, we have no idea whether we’ll sell anything and may have to spend more money shipping it all back again.”

Such fears are well founded. As the economic crisis has deepened, the once buoyant “design-art” market for expensive limited editions of furniture has floundered. Every area of the art market is suffering, but design is likely to be especially vulnerable as a young sector where many galleries have never experienced a downturn before. “I’m expecting to see the passionate collectors in Miami, those that follow the through-line of art and design in spite of global storms and falling stock prices,” said the New York gallerist Murray Moss. “O.K., so the word ‘discount’ may come up.” [ . . . ]

(More on the fate of the Design Art market after the jump.)

More “vultures” will be circling Design Miami, and the next round of design sales at Christie’s, Sotheby’s and Phillips de Pury in New York later this month. The auction houses have had some success in persuading their clients to accept more “realistic” (art-world speak for “cheaper”) estimates for their lots, making it a good time for serious collectors to buy, unless they suspect that prices will fall further as the recession bites. [ . . . ]

Art has historically been a highly cyclical business. The critical question for “design-art” is how damaging the current slump will be. The market showed signs of strain even before the credit crunch, partly because prices, especially of contemporary work, had risen so frenziedly. “In some areas we’re now seeing a logical readjustment,” said Philippe Garner, a director of Christie’s. “I’m less worried by that than I was to see prices rising on such a steep incline.” [ . . . ]

Art has historically been a highly cyclical business. The critical question for “design-art” is how damaging the current slump will be. The market showed signs of strain even before the credit crunch, partly because prices, especially of contemporary work, had risen so frenziedly. “In some areas we’re now seeing a logical readjustment,” said Philippe Garner, a director of Christie’s. “I’m less worried by that than I was to see prices rising on such a steep incline.” [ . . . ]

There are also tensions between leading galleries and the international design fairs, which have been launched to accompany art fairs, led by Design Miami, founded four years ago to complement Art Basel Miami Beach. Some galleries object to the quality of work at the fairs, and to the presence of too many secondary dealers, who sell existing pieces rather than commissioning new ones. Three of the most influential galleries at last year’s Design Miami – Kreo in Paris, Nilufar in Milan and Friedman Benda in New York – aren’t coming back this year. The 20 or so participating galleries have been left hoping that, like DesignArt London, it won’t be as dire as they expect.

Design: Limited-Edition Furniture is Feeling the Crunch (International Herald Tribune)