The Art Market for Japanese Prints in Spring Time of 2009

Dancer

Japanese Prints - Home
Kuniyoshi Utagawa 1797-1861
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The worst global recession since 1927 has its impact on the art markets. Japanese art prints are no exception. This article is an attempt of an analysis of the market for Japanese prints in May of 2009.

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The Current Japanese Prints Market - a Mixed Bag

To wrap it up: there is nothing like a uniform market for Japanese art prints. Today's art markets with the Internet in addition as a complicated sales platform are too diverse and segmented to come to a generalized conclusion. Of course, nearly all dealers are feeling the recession from what I know. But it is a mixed bag with comments like "Yes, we feel it, but it is not that bad." to "Worst we can remember".

It looks to me like there are some directions in the current situation:

• The market section of middle-priced prints seems to be hit the hardest.
• Face-to-Face business (brick-and-mortar galleries, art fairs) seems to do better than online businesses.
• The situation in Europe is better than in the U.S.A. or the development in Europe lags behind.
• Classical collector fields like excellent Edo prints or upper-scale shin hanga (pre-world war II without major condition problems) perform better than the 'kunis' and 'yoshis' that are more common for Internet galleries and online auctions.

Hibernating?

Tea Shop at Nakaizumi

Japanese Prints - Info
Hiroaki Takahashi 1871-1945
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The vast majority even of the well-established and renowned dealers in Japanese prints are small one-person "shows" that operate from at home without the costs of expensive gallery rents and without the costs for employees. Those who can afford it, react to the current recession by trying to hibernate the slump.

Less Quality Material Coming from Japan

Since summer of 2008 the Japanese Yen has gained considerably towards the US dollar and also towards the EURO. This means for Japanese dealers that they get fewer Yen when they sell prints to American or European dealers. The base currency for Japanese prints in international business is the US dollar. The weak demand by American and European dealers plus the poor currency rate, makes such intra-dealer business less interesting for the Japanese. As a consequence, they are holding their material back, and few high-class prints are currently coming to North America and to Europe.

artelino Art Auctions

Canal Village - 2

Ryohei Tanaka - Biography
Ryohei Tanaka born 1933
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We began to feel the recession in early 2008. In September 2008, when the bad economic climaxed, we were again hit hard.

Art auctions - and online art auctions more than brick-and-mortar auctions - are in my view an extremely psychological thing. Positive as well as negative trends are reinforced and multiplied. Online auctions offering art objects from real consignments are completely transparent. With a few mouse clicks everybody can see how well you are doing - or not doing.

The herd mentality and the thrill factor of an auction are important factors for online auctions. "Oh, there is hardly anybody bidding. These cannot be good prints or they are too expensive". And gone he is, the potential bidder.

The second factor is the fun and thrill factor. As the owner of an online auction site, I tend to think that the fun of outbidding and being outbid or watching others being involved in "dog fights" is for most bidders more important than the art print itself. (You may bash me for this remark. But I think it is true.)

Unfortunately there are not only the collectors and occasional buyers that show restraint. Normally we have a high percentage of Japanese print dealers among our active bidders. But now most keep their pockets closed (hibernating!.

Light at the End of the Tunnel?

Green Hat

Ukiyo-e - Introduction
Yoshitsuya Koko 1822-1866
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There are some reports that seem to indicate that it does at least not become worse. Apart from the actual economic situation, a lot will depend on the development of the share markets. Historically, the performance of art and share markets have always been closely connected. Even if neither losses nor profits have been realized, people who have assets in the financial markets have the subjective feeling of being "rich" or "having lost money".

I think mainly in Europe we should not expect a fast turn-around. The market for Japanese prints will remain lackluster in my view for at least until the end of 2009. Exceptions like our latest auction of Japanese art prints from the estate of Robert O. Muller in February with the second best auction result in our company history since the foundation in 2001, are possible if the material is first-class and rare.

As a dealer and especially as an online auction house the best thing to do in the meantime is to try to improve one's business. Clients who buy art online have become extremely demanding over the years. Requirements for quality, technical know-how, legal and security aspects and marketing skills are today on a level that can hardly be fulfilled by one person alone. The art online business has become complex.

I think there is still enough air to breathe in the Internet - even for a small family business like artelino - and without having to use dubious methods.

Let's get prepared for the time when this worst recession since 1929 will be over.

Dieter Wanczura
(May 2009)

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