A Conversation with Josh Pullan, Sotheby’s head of Global Luxury Division
Since 1744, Sotheby’s has been the premier destination for buying and selling the finest art, exceptional jewels, and highly coveted items ranging from Michael Jordan’s game-worn jerseys to rare cars. Each year, the auction house hosts more than 600 auctions across its network of auction houses in 40 countries. As one of the global authorities in the luxury space, Sotheby’s knows a thing or two about curating one-of-a-kind experiences and maintaining its brand’s legacy amidst the changing economic, generational, and societal trends.
LIV Sotheby’s International Realty had a conversation with Josh Pullan, Sotheby’s Head of Global Luxury Division, to learn more about the future of this long-standing luxury icon, what makes Sotheby’s such a trusted brand, and how it’s adapted its centuries-old identity to meet today’s consumer expectations. Considering the shifts our culture has undergone in the past 200 years, Sotheby’s has experienced various evolutions to meet the latest trends and buyer preferences.
“The Sotheby’s brand is universally known and has a rich and deep heritage of 279 years, but it is also a business that has never stopped adapting, changing, and innovating throughout its long history,” said Pullan. “We are constantly looking to innovate, foresee new trends, and preempt collectors’ demands.”
The brand was the first in its industry to shift to hybrid and live-stream auction formats, which launched in June 2020. These new offerings, combined with in-person experiences, enhanced with state-of-the-art technology have dramatically expanded access to an unprecedented number of participants, helping Sotheby’s deliver its best first-half performance to date reaching $4.3 billion in sales.
One of these nuances to the brand’s selection of auction experiences is the Sotheby’s app. Through this mobile app, collectors can discover extraordinary art and objects more easily, place bids from anywhere in the world, and receive real-time notifications about items of interest.
Many of these changes are being driven by the generational shift in wealth. Millennials now have a lot of buying power and this is influencing what is being bought and sold and the way in which brands are marketing those commodities.
“We are definitely seeing a younger demographic participating in auctions throughout our business, but particularly in our luxury sector where Sotheby’s youngest clients are to be found. There are over 40% more bidders under 40 in our luxury sales than in the fine art side of the business. Also, digital art — NFTs — perhaps inevitably skew toward the younger generations who live more of their lives digitally. Last year 78% of NFT buyers were under 40.”
Josh Pullan, Sotheby’s Head of Global Luxury Division
This next generation is fueling sales in categories such as “handbags and accessories” and “street-wear and modern collectibles”. Both categories are sold almost exclusively online, showcasing where Sotheby’s has the highest proportion of new and younger bidders and buyers. Anticipating trends, reacting to preference
shifts, and aligning itself with the latest consumer interests is how Sotheby’s has maintained its status as one of the most well-respected leaders in the luxury space.
“Sotheby’s is focused on adding value to our clients and providing them with the type of services they want and need. The core of our success with our clients is our relationships, trust, and specialist knowledge,” Pullan said.
But even giants such as Sotheby’s can feel the effects of the changing economic environment. As the economy on the global scale continues to self-correct and return to a pre-pandemic state of “normal,” the waves of inflation are rippling into nearly every facet of the buying and selling experience. However, similar to how investing in a home can help safeguard your money from inflation, so too can investing in fine art and high-value items.
“The market is global, and generally art is a good hedge for inflation and currency weakness. As a category, it has performed well in the past several decades and has outpaced inflation quite significantly over a long period of time.” Pullan went on to say, “At the moment, we are continuing to see a strong and resilient market for art and luxury lifestyle. For instance, in August RM Sotheby’s broke world records, bringing in $239.2 million at its flagship auction at Monterey 2022, selling more than all other Monterey auctions combined.”
The highest value lot bought by a collector under 40 is the Yoga Labs by 101 Bored Ape Yacht Club for $24.4 million USD.
This example helps illustrate consumers’ strong desire to spend their hard-earned money on things they connect with, inspire them, and help them invest in themselves and their future. Just as LIV Sotheby’s International Realty helps its clients write their next chapter through buying and selling homes, Sotheby’s guides clients toward their happy place by assisting in the curation of pieces that mean the most to them.
Pullan commented, “Throughout our long history we have promoted access to and ownership of the most exceptional art and luxury objects. Our vision remains to be the leading and most trusted global marketplace for art, luxury, and lifestyle.”
