The Art Economy

of Remote Australia

CRC for Remote Economic Participation

Aboriginal and Torres Strait Islander Art Economies Project

Tim Acker, Curtin University

Introduction

Ninti One: research, innovation and community

development in remote Australia.

Ninti One manages the CRC-REP.

Aboriginal and Torres Strait Islander Art Economies

Project: 2011 > 2016

• 8 researchers/students

2

Who?

Value chains: Dr Alice Woodhead

Art Centre sustainability: PhD – Kim Petersen

Art Centre enabling environment: PhD – Susan

Congreve

Buyer behaviour: Masters – Jessica Booth

E-commerce in Art Centres: Honours – Iris Bendor

Art Centre human resources: Honours – Michelle

Whittle

Art Outside Art Centres: Dr Lisa Stefanoff and others

3

Where?

4

Art Economies Value Chain Project (AEVC)

Understand production and sale of remote-area art.

Aim: enable change and inform artists + art business.

Senate inquiry recommendation.

Value chain analysis: economic not cultural focus.

Primary market focus.

Complicated value chain + cross cultural factors.

Incorporate variability.

Six reports reflecting remote Aboriginal and Torres Strait

Islander art supply chain.

5

Value Chain Focus

6

Artist Public Art Business Private Art Business Customers Customers

Art Centre Freelance

Art Centre Cultural Centre Gallery

Gallery Mixed business Agent

Tourist General public Private collector Public & private

institutions

Government Agencies • State/Territory • Commonwealth

Auction houses Collections Public & private institutions

Boundaries of Value Chain analysis: Visual Art Funding, Production, Sales and Markets

Primary Market Secondary Market

Value Chain Reports

7

Art Centre finances

Art business trading practices and policy views

Methodology and

art regions

Art Centre production

Synthesis

AEVC: Data collection and Methodology

Art Centres:

• 73 provided production and sales data

Art Businesses:

• 126 participated in survey

Government:

• Local, state and Federal agencies (2000 > 2012)

Timescales of two x five years: 2003 > 07 and 2008 > 2012

Art: all mediums – merchandise separate (art products).

Data gaps and variability.

8

Key Findings: Art Centre Finances

Highly effective funding model: over 90% of artists

reached.

Increased funding has seen growth in artists, art

centres and production.

Sales are around $30million p/a – fairly static

Increased funding = increased funding dependency.

New funding is for employment outcomes.

Fall in retained earnings.

Select art centres make most of the sales.

Sales are improving.

9

Key Findings: Art Centre Funding

10

$-

$5

$10

$15

$20

$25

Millio

ns

Federal Art+Culture Other Federal Federal Employment State/Territory

Key Findings: Mean Art Centre Income

11

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Average Sales Average Grants

$-

$100,000

$200,000

$300,000

$400,000Wages

Artist Payments

Key Findings: Mean Art Centre Expenses

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Average Sales

Average Retained Earnings

Key Findings: Sales and Earnings

Key Findings: Art Centre Finances

14

0%

10%

20%

30%

40%

50%

60%

70%

80%

-$90,000

-$40,000

$10,000

$60,000

$110,000

$160,000

2005 2006 2007 2008 2009 2010 2011 2012 2013

Mean profit Mean loss % Art Centres with a retained profit

Key Findings: Art Region Mean Sales

15

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

A WD APY K T FNQ CD WC TSI C ED OB

Key Findings: Production and Sales

14,107 artists: 13,196 working with art centres; 70%

female and 30% over 55 years old. Male artists earn

more than female artists.

Growth in sales and production, but production has

grown faster than sales = oversupply.

Average price for artworks is falling.

Paintings dominate: 64% of production, 91% of value

Big, expensive works have seen the greatest falls.

16

Key Findings: Art Centre and Freelance Artists

17

1578 693 584 934

308 316 1272

134

430

234

432 6281

145 25

100 120 75 65

75

90

20

80

45 35

0%

20%

40%

60%

80%

100%

A APY C CD ED FNQ K OB T TSI WC WD

Artist numbers

Art Centre Freelance

Key Findings: Artist Gender

18

916

86

8

101

406

34

89

134

17

157

477

WD

WC

TSI

T

K

FNQ

ED

CD

C

APY

A

275

25

17

58

180

14

5

29

2

33

343

800 600 400 200 0 0 200 400

Female Artists Male Artists

Key Findings: Over Production

19

11,470

16,339 19,135 20,210

22,667 24,772

27,779 28,966

25,526

17,890

$5.9

$7.7

$9.5

$10.4

$12.6

$11.6 $11.0

$11.7

$9.2

$6.8

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Millio

ns

Number of Products Total value of products

Key Findings: Mean Value of Products

20

$862

$821

$885 $838

$786

$651

$544 $558

$453 $449

$515

$472 $499 $513

$555

$469

$395

$405

$359

$383

$0

$200

$400

$600

$800

$1,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Mean value of paintings Mean value of all products

Key Findings: Pricepoints

21

12.6%

24.8%

41.2%

12.2% 9.3%

64.2%

23.1%

9.2%

0.8% 0.3% 0%

10%

20%

30%

40%

50%

60%

70%

$2 to $249 $250 to $999 $1000 to $4999 $5000 to $9999 $10000 andhigher

% Value of products % Number of Products

Key Findings: Gender gap

22

$512

$740

$0

$10

$20

$30

$40

$50

$60

$70

$80

F M

Mil

lion

s

Value of art products Mean value of art products

144,312 Products

46,370 Products

Key Findings: Art Businesses

Private art businesses more impacted than public art

businesses.

Some optimism: sales expected to grow.

Western desert art dominates sourcing of works.

Australian customers dominate.

Europe and US are main international markets.

Provenance issues and importance of quality control.

Perceptions + attitudes: buyer / supplier relationships

Business barriers and challenges.

23

Key Findings: Market Summary

24

Painting

Sculpture

Works on paper

Textiles and

Fashion

New Media

Australian Collectors

Australian Private Buyers

International Collectors

International Private Buyers

Other

Key Findings: International Markets

25

0%

5%

10%

15%

20%

25%

USA/Canada France Germany Rest ofEurope

UK Asia NZ

% o

f to

tal m

arke

t

2008/ 12 2012/16

Key Findings: Policy Perceptions

26

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Self Managed SuperFunds

Resale Royalty Indigenous Art Code Cultural Heritage

Dissatisfied Neither or unsure Satisfied

Value Chain Project: Informing and Advocating

Outreach for end-users.

Recommendations/Implications

For artists

For art centres

For other art businesses

For peak bodies

For policy makers/funders

For the research community

27

Project Outputs

Reports and other publications:

• http://crc-rep.com/research/enterprise-

development/aboriginal-and-torres-strait-islander-

art-economies/project-outputs

Art Atlas:

• http://www.users.on.net/~s.moyle/Art_Atlas_Financi

als/atlas.html

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Other Research Topics

Art Centre sustainability: Kim Petersen

Art Centre enabling environment: Susan

Congreve

Buyer behaviour: Jessica Booth

E-commerce in Art Centres: Iris Bendor

Art Centre human resources: Michelle Whittle

Artsworker employment: various.

Art Outside Art Centres: Dr Lisa Stefanoff and

others

29

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