The Fine Art of Managing Christie’s

As more people tune in for the “theater” of high-end auctions, Bonnie Brennan is trying to convert them into clients.

After a long slump, the world of high-end art is getting brighter.

The auction house Christie’s reaped its highest sales in three years during the marquee week of its November auctions. Farther uptown, its biggest rival Sotheby’s nearly set a record with the sale of a Gustav Klimt portrait. Plus, it sold a gold toilet for $12 million.

For that week, the auction houses, which charge fees to buyers and sellers, recorded $2.2 billion in sales, a 77 percent increase from the previous year. The momentum continued this month, with Christie’s selling a diamond-encrusted Fabergé egg for more than $30 million, an auction record for the famed Russian jeweler.

While collectors may be regaining their appetite for pricey pieces, the economics of the industry remain challenging. Christie’s and Sotheby’s, both founded in the 18th century, fight for the attention of a small group of big spenders, while trying to entice the next generation of buyers into joining an exclusive world.

Inside Christie’s primary salesroom at Rockefeller Center one night last month, the fast-talking auctioneers sold 44 pieces of art to bidders in the room and those watching online. The event, which emphasized pieces made this century, provided a “proof of concept” for Christie’s as it looks to expand, said Bonnie Brennan, who became the company’s chief executive in February.

Collectors are interested in acquiring more art by women, artists of color and emerging artists who have been “underrepresented in a Christie’s auction because of the price point,” said Ms. Brennan, who joined Christie’s in 2012 after a 15-year stint at Sotheby’s. The most expensive lot that night went for $20 million, and about a fifth of the works sold for less than $1 million.

Another important number: The week’s evening auctions at Christie’s generated 3.7 million livestream views. That was an 85 percent increase from the year before.

“People love the theater in person,” Ms. Brennan, 52, said. “We’ve invested a tremendous amount in making sure that experience is not limited to the 200 people in the room.”

This interview was edited and condensed.

The high-end art market had been in a slump. Why do you think things have picked up in recent auctions?

We’ve had plenty of demand; we just haven’t had enough supply. This season, particularly in the U.S., where we saw a lot of estates come to market, that supply was really special.

People were taking a pause last year because of the U.S. elections. In May, we started to see a level of confidence return: “OK, I feel good about stepping my toe in the water, putting the work that I own up for auction.”

At the auction, I noticed that the auctioneer often emphasized the “importance” of a piece. Why is storytelling such a big part of the sale?

It’s really how we can differentiate our firm and also the objects that we present. No story is ever the same as the one that came before.

We stand in front of the art with clients, telling them not only about the object, but about how this was collected by the Rockefeller family. They were guided by great advisers at the MoMA that they built.

And that makes a buyer feel more important by association?

Hearing about the story oftentimes solidifies that passion for getting this Rothko, not just any Rothko. You want the Rockefeller Picasso or Weis Rothko because of the story.

People just want a piece of someone. We had people through the doors who’ve never been to Christie’s when we sold Jeff Beck’s guitars. We sold Elton John’s collection.

With Elton John and some of those special personality sales, the estimates can be modest, and it’s the personality that drives it to multiples of what we expect.

We make new relationships and then hopefully encourage people to come to us not just for the pop icon that they love, but maybe when they want to buy a piece of jewelry.

Does that approach also work with younger buyers who may not have as much to spend?

For the younger generation, because of their focus on sustainability and shopping with values and ethics, there’s a real opportunity for the secondhand market, which is reflected in some of the luxury sales. That is one of the easiest gateways for new buyers.

Our average lot value is just under $100,000, but our median is $8,000.

A constant challenge is to remind people that there is a great diversity of offerings here and an incredible variance of price points.

An auction today looks a lot like it did decades ago. Why has the way you sell stayed the same?

The DNA of Christie’s is the auction — that’s what people think about.

Auctions have always been our primary channel, but now we’re very robust in private sales, which is always-on, any day of the week.

That also is a reflection of the increased interest in discretion. Some people don’t want to be on a public stage and have their work sold in front of hundreds of people.

The art market appears to be all about deal making. What percentage of your time is devoted to thinking about deals?

I’m always thinking about the next great collection that we want to offer. How I get there is making sure that I’m making relationships with people long before there’s any opportunity.

I’m not just selling you on something because it benefits me. We’re in a repeat business.

There are plenty of times that I might say to a new collector, “Don’t buy this. I know what you want. Let me find it for you.”

What was the longest relationship you had with someone before they chose to sell artwork with you?

I had a client from California that I worked on for 20 years.

Do you regret that once Christie’s sells a piece, the public might never see it again because it goes into someone’s house?

All of the collectors we deal with are stewards of these objects for a chapter.

A big trend in our world is around philanthropy. Whether it’s buying to give to institutions or whether it’s selling to raise money for organizations that mean something to them. That is powerful and motivating to new clients.

At the end of bidding at an auction, people clap. Why?

That’s rooted in passion and excitement and celebrating the artist’s work.

My thinking was that people were celebrating disposable income. Anyway, there are times when two people are going back and forth with bids, and then there’s silence. What do you think the person is thinking about before they up it another $100,000?

I envision those clients running a highlight reel of why.

Passion is not rational. They love it, they’ve connected with it and they’re not going to let it go. That’s a critical point in the buying process, that moment where you could let it go.

You talk with great collectors who have unbelievable collections, and they always talk about the one that got away.

Tell me about your childhood. You’re from a suburb of Detroit.

My mom loved art and fashion and worked in fashion, but was also a great draftsman. She was an artist herself as a hobby.

I paint and draw whenever I have time. My parents were very encouraging of me looking at art and studying art history when I went to Northwestern. A lot of parents sometimes push back on those types of things.

I came to New York right out of college and worked in advertising for a couple years because art world jobs were not going to allow me to support myself.

It was because of those business development and pitching skills that I was hired at Sotheby’s to help write proposals.

Did you ever have a fork-in-the-road moment in your career?

I almost went to business school. In 2001, I had an apartment, I was moving to New Haven, I was going to go.

You get so invested in every stage that by the time you get to the end of the process you think, How could I not do this?

Sotheby’s said, “If you’ll stay we’ll give you your boss’s job.” I was faced with taking out student loans or staying at a company I love and having a growth opportunity.

Additional education is always great, but I’m happy that I didn’t get on that train. I might not be where I am today.

It’s time for the lightning round. Favorite museum in New York?

The Whitney.

Favorite museum in the world?

This is like asking for your favorite child. Our owner’s museum is like a chapel to me, the Bourse de Commerce in Paris.

What was the artwork that got away?

There was a wonderful O’Keeffe. It was, until recently, the record for a female artist. It was a great painting that we did not sell.

Should Christie’s accept crypto?

No. When it becomes a more regulated, more stable currency, it’s something we will explore.

What hours do you sleep and how many hours do you sleep each night?

I need at least six hours. How I get those six depends on the time zone I’m in. I travel a lot, and jet lag is not something I’ve conquered.

In any given month, how many days are you on the road?

More than 20.

What’s your biggest pet peeve as a chief executive?

People who don’t work in teams.

Related Content