Strauss & co - Review 2020

In summary: • Strauss & Co held 12 sales in 2020, earning a combined income of R316.6 million • In response to the pandemic, Strauss & Co transformed its marquee live sales into virtual sales, hosting three live- streamed auctions that earned R255.25 million • Its seven online-only sales earned a total of R45.7 million, a year-on-year gain • Trust in online transacting ensured continuity in Strauss & Co’s business operations • Live-streamed auctions replicate the function of traditional in-person sales, but they are also characterised by new patterns of bidding and auctioneering Strauss & Co has traditionally differentiated its sales into two main types. Held three times yearly in Cape Town and twice a year in Johannesburg, its five marquee live sales gather together premium collectables, which are sold by an auctioneer on a rostrum in front of a live audience. These sales are a forum for seasoned collectors and trade specialists. By contrast, Strauss & Co’s automated online-only sales have historically offered a mix of entry- to mid-level works. Value is key. Aimed at emerging collectors, Strauss & Co’s online-only sales nonetheless provide established collectors with a platform to trade in prints and multiples, paintings, decorative arts and fine wine. The rapid virtual shift necessitated by the Covid-19 crisis did not entirely disrupt this arrangement. For example, the company’s seven online-only sales continued without interruption, earning a combined income of R45.7 million – more than doubling the revenue earned in 2019 (R20.3 million). The seamless transition to digital buying and selling in 2020 has been matched by an uptick in the value of individual lots sold. Collectors are increasingly willing to acquire high-value lots sight unseen. One of the highest value lot sold through the live virtual platform in 2020 was one of the JH Pierneef’s undated oil, Bushveld Landscape , which fetched R351 750 in June. By virtue of its live format, Strauss & Co’s marquee sales had to be adapted in order to comply with national health regulations. This included rethinking previews and hospitality, integral aspects of the sales process. Strauss & Co took the decision to reconfigure its marquee sales into virtual sales that combined live auctioneering with remote digital transacting. Limited physical previews were offered to enable inspection. Much of the prototyping for this hybrid way of working happened around the company’s May sale. Initially scheduled for March, Strauss & Co’s first marquee live sale of 2020 was a brave experiment, as well as a first for South Africa. Held over two days in May, the live-streamed sale was led by a team of auctioneers operating from studios set up in Cape Town and Johannesburg. The nearly 650-lot sale was a great success, earning R84.2 million with a lot sell-through rate of 81.4% and value sell-through rate of 84.1%. Two works by Irma Stern alone brought in R26.2 million. Over 500 bidders fromover 20 countries vied for the rare and collectable wines on offer. “The positive outcome of this sale is an important endorsement of the value and collectability of SouthAfrican art, wine, jewellery, decorative arts and furniture, as well as the technology-driven approach taken by Strauss & Co to bring much-needed liquidity to the secondary art market,”said Strauss & Co chairperson Frank Kilbourn shortly after the sale. “This sale demonstrated the value of teamwork and innovation at every level in our organisation in dealing with current Covid-19 related challenges.” Adapting the live sale in a pandemic The seamless transition to digital buying and selling in 2020 has been matched by an uptick in the value of individual lots sold. Collectors are increasingly willing to acquire high-value lots sight unseen. 12