Business models of art galleries: a thematic synthesis of the literature.

Abstract

Art galleries have long been pivotal actors on the art market and the ways they conduct business, blending it with art, vary greatly. Some have distinctly a retail profile whereas others are rather into production, embedded in a value constellation that creates art value. A wide segment of galleries struggle to make any profits while a few top galleries dominate the market, but mobility within the market is strongly influenced by the art fairs. Art fairs have become powerful brands and commercial platforms able to make the difference for galleries and artists’ success, and as such have a strong power on them. Despite the relevance of art galleries as economic actors and of the established phenomenon of art fairs, scientific knowledge on the topic is inconspicuous and very fragmented. This thesis has the purpose of identifying and synthesizing the relevant literature existing on the topic, in particular on the different business models found and on how the art fair is influencing them and the decision making of gallery managers. To do so, a method of literature review is adopted that comprises a structured literature search and a thematic synthesis. The resulting synthesis offers an overview of the functioning of art galleries and highlights their prevailing inside-out strategic perspective while letting the dynamics between galleries and art fairs emerge.