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Post-pandemic – How has Covid-19 changed the local art scene? Part 1

28 Feb 2022

This year kicked off on a high note, with the return of the Investec Cape Town Art Fair’s physical event in February. “There was a strong sense of optimism among visitors and obvious pleasure at experiencing artworks in the flesh again,” says Dr Alastair Meredith, senior art specialist at Strauss & Co. “In the past two years the art world was forced to pivot from a live, physical presence to digital and online. The paradigm shift has certainly had its challenges and its windfalls”. Covid-19 turned the art industry upside down, both locally and globally. Art fairs were banned from trading in a physical space, auction houses had to reevaluate their marketing and selling strategies, and art galleries had to think creatively about connecting the artists they represent with potential buyers and collectors.

A pivot to online

“The pivot from digital to online was probably the biggest adaptation we had to make,” says Susie Goodman, executive director at Strauss & Co. “Previously, we had physical viewings, walkabouts and cocktail parties in the run-up to an auction. The majority of the bidders were either physically present on the day of the sale or sent representatives to bid on their behalf,” she explains, “but the company was forced to change its business model after Covid-19 hit.” Everything shifted to the digital realm. “Our live sales are all streamed online in real time now, giving bidders another way of participating in the action. To help potential buyers make their choices, we invested in HD 360-degree camera technology to offer a virtual viewing experience of the artworks going under the hammer,” she explains. “We also organised special, personal Zoom sessions with our art experts and created more videos of specific works that art lovers could access through our YouTube channel.”

Goodman explains that, in the past, remote buyers could always bid on a lot telephonically. These clients have made the mind-shift to a virtual live online system relatively easily. “Remote bidding has always appealed to our discreet, high-net-worth clients, but there are also bidders who thrive on the drama and gregariousness of a competitive, live-action auction. As the pandemic restrictions around public gatherings are easing up, we’re able to accommodate both preferences – remote or in-person, bidders can be part of the excitement!”.

The necessary shift from live auctions, in situ, to live auctions streamed online, brought an unexpected but welcome benefit for the auction house – greater exposure to international markets and art collectors. “Pre-pandemic, the majority of our international clients were South African expats interested in local art. Now we’re attracting international collectors who not only appreciate the aesthetic value and quality of African and South African art but also its investment potential,” says Meredith. “During some auctions, we had international representation from almost 20 different countries! The strong dollar/pound/Euro exchange rates against the South African rand make our local auctions extremely appealing to overseas bidders,” he adds. “South African art remains exceptionally well priced, and international buyers receive brilliant value for their dollars or pounds.”

Initially, the auctioneers at Strauss & Co were concerned that a live streamed auction would not have the same drama, excitement and competitive bidding as a physical auction. These fears immediately proved unfounded. “Over the past two years we’ve had several virtual live auctions that far exceeded our expectations,” says Meredith. “A highlight of 2021 was the first-of-its-kind single-artist auction that focused exclusively on perennial South African favourite JH Pierneef. It was held during the height of the second hard lockdown, which meant that viewings were restricted. Despite these challenges, all 69 lots found buyers, and we obtained a white-glove sale!”

Modernists remain stalwarts, young investors buy online

Strauss & Co is also experiencing an uptake by younger collectors and digital natives, who are turning to art to diversify their investment portfolios. According to a Reuters report, these collectors find the online world more accessible than traditional auction rooms. They are more willing to purchase artworks online without seeing the real thing first. These collectors are also not afraid to hedge their investments on non-fungible tokens (NFTs), or artworks that exist only in digital form – on a recent Christie’s auction, an artwork by US artist Beeple went for $70 million! The advent of NFTs has turned the art world on its head and auction houses like Strauss & Co are keeping a close eye on the trends and repercussions in the industry. “We’re especially interested in blockchain technology, and what it entails for the provenance of an artwork,” says Meredith, “because traditional documents and records are often difficult to trace, leaving the artwork’s provenance incomplete.”

Younger investors are especially keen on contemporary African artists such as Zanele Muholi, Athi-Patra Ruga, Georgina Gratrix, Lutanda Zemba Luzamba, Deborah Poynton, Yinka Shonibare, Billie Zangewa, and Portia Zvavahera, and their prices are rising as a result. But the big-hitters still seem to lean towards modernist and pre-war artists, preferring blue-chip stalwarts like JH Pierneef, Alexis Preller, Irma Stern and Anton van Wouw. On the local auction circuit, 2021’s top-selling lot was a characteristic Pierneef landscape, Bushveld, Pafuri, which sold for R11.6 million.

A potential gamechanger for local contemporary art was No Bare Back, After Embah, an artwork from South African artist Lisa Brice. The painting reached a staggering $3,166,000 (more than R50 million) on a Sotheby’s sale. The record price cemented her reputation as a leading global contemporary artist – in the company of fellow South Africans such as William Kentridge and Marlene Dumas. It bodes well for the future value of South African contemporary artists on the international auction circuit, proving that they can stand their ground anywhere in the world.