A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide for high-net-worth investors and consumers. Sign up to receive future editions delivered directly to your inbox. Christie’s art company aims to tap the next generation of wealth through online auctions, digital art and luxury goods, its incoming chief executive says. Bonnie Brennan, president of Christie’s Americas and CEO on February 1, said in an exclusive interview with CNBC that changing wealth demographics are driving new approaches to the auction business. Brennan, who has been with the auction for 13 years, will succeed chief executive Guillaume Cerutti, who remains chairman, and will take on a new role overseeing Artémis’ artistic and cultural activities. Artémis is the holding company of the Pinault family, which owns Christie’s. Brennan said more than a quarter of Christie’s buyers and bidders in the Americas are now millennials or younger. The surge in younger buyers is also shifting growth toward online sales, with 81% of all Christie’s bids in 2024 coming from online channels. “There’s been a huge increase in the number of Millennial and Gen Z buyers,” Brennan said. “We need to make sure we’re listening well to what they’re interested in.” The auction house’s luxury goods business — which sells everything from handbags to watches to jewelry — has been a big source of new business for young collectors, These collectors often turn to art. Digital art and sales of non-fungible tokens (NFTs) will also make a comeback, Brennan said, as cryptocurrencies are experiencing a resurgence in value and popularity, especially among people under 40. In 2021, Christie’s sold a digital art work by artist Beeple for US$69 million, marking a historic moment in the art world and the peak of the NFT craze. The value of the digital asset has since plummeted, leading to widespread losses and accusations of fraud and market manipulation. “We went through this crypto winter, and after Beeple, we didn’t have that many NFTs,” Brennan said. “But as the cryptocurrency market stabilizes and sees some green shoots, I still believe there’s still a long way to go there.” Another big draw for young collectors is celebrity collecting. Christie’s auction house has sold a collection of items once owned by Elton John, including his car, piano and silver platform boots, for $94,500, with a total value of more than $20 million. “Celebrity sells well in America,” Brennan said. The transfer of wealth from older to younger generations is reshaping the wealth management, luxury goods, and especially auction and collection markets. As part of the “Great Wealth Transfer,” more than $100 trillion is expected to be passed on to younger generations and women in the coming decades. Coupled with the growing earning power and technological wealth of those in their 30s and 40s, the collectibles market, which has been driven by baby boomers for years, is changing dramatically. Brennan said that geographically, the United States will continue to be an important engine of growth for Christie’s, accounting for 42% of the company’s auction sales last year. Brennan’s appointment as chief executive after four years as president of the Americas was seen as confirmation of the U.S.’s importance in the global auction market, especially as China’s economy struggles. “The United States can sometimes be underestimated, but the backbone and stability of our market every season really comes from Americans,” she said. Brennan said that in addition to attracting younger buyers and growing in the United States, Christie’s is also looking to expand its use of artificial intelligence. She said Christie’s now mainly uses artificial intelligence tools for human resources functions and to help answer common questions from customers. Over time, she hopes to use AI to “enhance the customer experience” and perhaps even help evaluate and authenticate art. “It’s a useful tool; it’s not a replacement for people,” she said. “We also need the expert perspective. But AI will provide some really good data to look at and review as an enhancement.” Brennan said the strong momentum in the second half of 2024 is expected to continue or even accelerate this year. According to ArtTactic, global auction sales fell 25% to $8.3 billion in 2024, down 40% from the peak in 2022. However, Christie’s performed slightly better than many of its peers, reporting total auction sales of $4.2 billion in 2024, down 16% year-on-year, and private sales totaling another $1.5 billion, up 41%. Art experts say the biggest drag on the market last year was not buyer demand but a lack of outstanding works for sale. Christie’s said its “sell-through rate” – the percentage of lots sold – was 86% in 2024. Last year, the company sold the most expensive work at auction, Rene Magritte’s “L’empire des lumières,” for $121 million. . It was the only work sold at auction last year for more than $100 million. Brennan said 2025 is already showing signs of increased seller confidence. “We’ve been receiving a lot of information from our customers, which tells me the market is going to be strong in the spring,” she said. “You never know what’s going to happen, but I feel really good about the year, especially the first half.”
A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide for high-net-worth investors and consumers. Sign up To receive future editions delivered directly to your inbox.
Christie’s art company aims to tap the next generation of wealth through online auctions, digital art and luxury goods, its incoming chief executive says.
