The most famous auction houses in the world Automatic translate

Among the many auction houses operating around the world, several stand out for their historical significance, business structure and notable sales. These include Sotheby’s, Christie’s, Bonhams and Phillips.

Sotheby’s

Founded in 1744 by Samuel Baker in London, Sotheby’s is one of the oldest and most famous auction houses. The company initially specialized in selling books, but then expanded its activities to include fine art, jewelry and other valuables. Sotheby’s global presence includes major showrooms in New York, London, Hong Kong and Paris.

Sotheby’s operates under a hierarchical structure in which there are specialized departments dedicated to various categories such as Impressionist and modern art, old masters and others. Each department employs highly specialized experts who evaluate and catalog items offered for auction. The auction process at Sotheby’s includes several stages, from the transfer of items into storage, through authentication, cataloging and marketing. Auctions are held live, online or through private sales.

Notable Sotheby’s sales include Edvard Munch’s "The Scream," which sold for $119.9 million in 2012, and Jeff Koons’ "Rabbit" sculpture, which fetched $91.1 million in 2019. Sotheby’s owners have changed hands several times: in 2019, the company was acquired by telecommunications tycoon Patrick Drahi.

Christie’s

Christie’s, founded in 1766 by James Christie, is another leading auction house with a rich history. Founded in London, Christie’s has expanded its operations worldwide, opening key offices in New York, Paris, Geneva and Hong Kong. Christie’s offers a wide range of categories, including fine and decorative arts, jewelry, photography and wine.

Christie’s business structure includes many departments, each of which specializes in certain types of art and collectibles. The company has a rigorous auction preparation process, including consignment of items, expert appraisals, catalog production and global marketing campaigns. Christie’s auctions are held both live and online to cater to a wide variety of clients.

Notable sales at Christie’s include Leonardo da Vinci’s Salvator Mundi, which set a record price for an artwork at $450.3 million in 2017, and Pablo Picasso’s Women of Algeria, which reached $179.4 million in 2015. Christie’s is privately owned by François Pinault, a French businessman and art collector.

Bonhams

Bonhams, founded in 1793, is another famous auction house with a long-standing reputation. Bonhams is headquartered in London but operates globally, with salesrooms in New York, Los Angeles, Hong Kong and Sydney. Bonhams is known for its diverse auction categories, including cars, jewelry, Asian art and books.

Bonhams’ business structure includes specialized departments for various auction categories, each of which is managed by experienced professionals. The auction process includes consignment of items, extensive research, cataloging and extensive marketing. Bonhams hosts live and online auctions, attracting a global audience of collectors and dealers.

Notable Bonhams sales include an Apple 1 computer that sold for $905,000 in 2014 and a rare blue diamond ring that fetched $6.7 million in 2013. Bonhams is owned by British private equity firm Epiris.

Phillips

Founded in 1796 by Harry Phillips, Phillips has a rich history in the auction world. With headquarters in London and New York, Phillips specializes in contemporary art, design, watches and jewellery. Phillips is known for its innovative approach to auctions, focusing on contemporary and cutting-edge works.

Phillips has expert departments dedicated to specific auction categories. The auction process at Phillips includes securing consignment, item authentication, detailed cataloging and targeted marketing strategies. Phillips conducts live and online auctions and private sales, targeting a sophisticated clientele.

Notable Phillips sales include Jean-Michel Basquiat’s Flexible, which sold for $45.3 million in 2018, and Richard Diebenkorn’s Ocean Park No. 126, which reached $23.9 million in 2018. Phillips is owned by the Russian company Mercury Group, which specializes in the sale of luxury goods.

Operating mechanisms and business strategies

Auction houses operate using a complex mechanism to ensure the successful sale of valuable items. The process begins with consignment, where owners put items up for auction. Experts then authenticate and evaluate the items to determine their value and authenticity. Detailed catalogs are then compiled with high-quality images and descriptions to attract potential buyers.

Auction houses use various marketing channels to reach a global audience. These include print and digital advertising, social media campaigns and exclusive previews. Auction houses also organize pre-auction exhibitions, allowing potential buyers to view the items in person.

Bidders must prove their solvency to participate in high value auctions. This is usually done through the registration process, which may require the provision of identification, financial statements, and a deposit or letter of credit. For large auctions, the auction house may conduct a background check on the bidder to ensure the bidder’s solvency.

During an auction, items are offered for sale and bids are accepted from the floor, online and by telephone. The auctioneer manages the bidding process to ensure a fair and transparent sale. Successful bidders are required to pay a buyer’s premium, which is a percentage of the final price that provides additional income to the auction house.

Representation and global reach

The global reach of auction houses is facilitated by their network of offices and representative offices in major cities around the world. This allows them to source high-quality cargo and serve a diverse customer base. For example, Sotheby’s and Christie’s have offices in more than 40 countries, ensuring a constant supply of valuable items and attracting international bidders.

Auction houses also handle private sales, offering clients the opportunity to buy and sell items privately, outside of public auction. This service is designed for wealthy individuals and institutions seeking confidentiality and an individual approach to transactions.

Commission structure

Auction houses generate income primarily through commissions charged to both sellers and buyers. The seller’s commission is a percentage of the "hammer price" (final bid amount) specified in the consignment agreement. This rate may vary depending on the auction house, item type and appraised value, but is typically between 10% and 20%.

The buyer’s premium is an additional percentage added to the hammer price, which is paid by the buyer. Typically this percentage ranges from 15 to 25% and is clearly stated in the terms and conditions of the auction house.

Evaluation and authentication of works

Evaluation and authentication of works are carried out by in-house specialists who are experts in their fields. These professionals have extensive knowledge of art history, market trends, and technical analysis. They often collaborate with outside experts, scientists and laboratories to conduct scientific testing such as carbon dating, x-ray fluorescence and other methods to verify authenticity and condition.

Participation in auctions

Auctions are generally open to the public and anyone can participate as long as they meet the registration requirements. This openness allows us to attract a wide range of participants - from private collectors and art dealers to museums and institutions. However, some high-profile or exclusive auctions may require an invitation or pre-approval.

Selection of items for auction

The selection consists of several stages:

1. Submitting an Application : Potential sellers submit their items for consideration.

2. Initial appraisal : Auction house specialists conduct a preliminary appraisal to determine the suitability of the item and its potential market value.

3. Research and Authentication : Detailed research and authentication is carried out to ensure the origin and condition of the item.

4. Evaluation : Based on the results obtained, an examination of the item is carried out and its estimated auction value is determined.

5. Agreement : If the lot is accepted, a consignment agreement is signed detailing the terms, reserve price and commission.

6. Cataloging and Marketing : The item is then prepared for inclusion in the auction catalog and advertised to potential buyers.

Auction houses favor items with strong provenance, high marketability and significant historical or artistic value, ensuring a varied and attractive auction catalogue.