The rise of Instagram would benefit everyone equally. Or that is what I thought initially in a post I wrote about here. I did mention that the biggest winner was the collector and I still believe this to be the case.
But here we are 3 years later, after I wrote this article, and something else has happened as a result of Instagram. It is that of auction houses responding to a changing dynamic.
Let me explain what I mean.
Earlier this year Phillips watches announced via Instagram that they are launching ‘Phillips PERPETUAL’. It basically allows clients to buy and sell outside the auction seasons in a boutique experience and engage with their clients ‘365 days a year’ according to Phillips.
Meanwhile, Christies private sales is growing and being pushed by their department and as of last year was still their fastest growing business (according to company insiders).
Why am I mentioning this? Because auction houses are responding to the rise of Instagram and social media and the positive impact it has had on the competition (like dealers).
Instagram has changed the dynamic of watch collecting, and the auction houses know it. Instagram is open for business 24/7 and the collectors and dealers are taking advantage of it.
As Aurel Bacs, head of Phillips watches – the leading auction house for vintage watches globally, acknowledges: 20 years ago no one was able to buy or sell a fine collectors watch if it was not via a public platform such as a tradeshow, a dealer or most importantly via an international auction house. The same applied to scholarship: It was only accessible on a personal, one-to-one basis, meaning, the person sharing it with you had to be in front of you.
Today with Instagram and other social media, things are radically different. On the whole – all players have benefited – including auction houses. Bacs describes it as wonderful new democratic platform that has been ‘an amazing trampoline for collectors, dealers and auction houses’.
Everyone can now engage with the entire world instantly and at no cost. As a result, deals and business is being done 24 hrs a day. Every single dealer, collector, speculator, watch store, antique store is showing their goods on Instagram and displaying it for sale. While everyone has benefitted – I personally think that commercially at a certain price point (lets us say below USD20k), the auction houses have probably conceded some market share. More importantly with the structure the auction houses have had in the past, Instagram had another advantage for the collecting community.
Instagram is never really closed for business as opposed to auction houses that have auctions taking place only several times a year and have fixed opening and closing hours.
Today, in 2019, there is no need to wait for the auction season to sell (or buy) a watch.
You can sell it immediately on Instagram where you have exposure to the entire world. Another problem many collectors have with the auction houses is the following: From the time you decide to enter your watch for sale at an auction house to the time you get paid, this process can take at minimum three months but can take as long as six months to play out. That is far too long for many sellers.
In todays fast pace world – collectors don’t want that. That wait time is too long. This partially explains why in my view Phillips decided to respond with ‘Phillips PERPETUAL’ and why Christies private sales has been booming since a long time already. It makes perfect economic sense for auction houses to set up private sales along side their auction business.
Let me give you an example out of personal experience.
I just recently did a private deal for a watch that found its way to me due to another form of social media – my blog. From the time I saw it to the time I paid for it, it all happened within 72 hours. And this involved a deal including different time zones (America and Switzerland) with a 6 hour time difference. Had I bought it at auction I would be looking at anywhere between 3 to 6 months delay.
In my view auction houses had to respond to a change in dynamic caused by social media and instagram and the platform it gave dealers (who are the primary competition of auction houses) but also collectors. However, as Aurel Bacs correctly points out – Instagram and social media has not only been a positive change.
Instagram and social media have allowed some confusion to enter the watch market.
This is because everybody suddenly is claiming to be an expert on vintage watches. Instagram has given everybody the power and the platform for self promotion. As a result, there is much information spread on instagram and social media that is often not correct. Sometimes the people spreading this mis-information have not even seen the watch in real, or are simply acting for their own agenda. In the end I agree with Bacs when he points out, ‘no digital platform can ever replace a personal contact between buyers and sellers. Also, scholarship cannot be gained online but is rather built on personal hands on experience’.
Closing remarks
Collectors are spoilt by the constant open for business appearance and reality on instagram, want instant information and access to watches being sold or bought. This is just the reality of the fast times we live in.
I heard UPS is testing delivery of packages on Sunday. The NYSE is thinking of keeping open on weekends. There is no ‘traditional weekend’ anymore. We live in a world where business must and should be open 24/7. Auction houses could not live with the model of auctions only anymore. Not in the age of Instagram which is open for business 24/7.
However, let me state very clearly: In my view the important role an auction house can provide has remained the same, despite the rise of Instagram. For a very rare watch, I still believe the auction houses is the best route to sell. It has the largest marketing reach, and I am a big believer in letting the markets decide what an important watch is worth.
The move by Phillips to create PERPETUAL and offer a full year around possibility to buy, sell, consign or trade watches was a smart and natural move by the leading auction house in the world for vintage watches. Millennials today want instant gratification according to Bacs and Phillips now gives collectors in the London area an additional option.
And with Christies pushing their online sales, and private sales business and Sothebys also gaining strength, the auction houses are creating their own platforms and options for the collector who wants to act at any given moment in time.
