The art gallery in the digital age: How can galleries sustain their businesses in times of digital business transformation?

Various art market participants – and especially art galleries – have long been reluctant to embrace digital channels for selling art. Previous research has repeatedly stressed that the art market follows its own rules, as the value of art cannot be determined objectively. It is formed in the social context through the interaction of various actors and gatekeepers, including galleries. Due to the rapid digitisation, which affects all business areas and thus also the art market, the question arises how galleries can maintain their business in times of digital business transformation. Despite the increasing relevance of digital channels in the gallery business, there has been little research on online sales and their impact on the gallery business. This thesis therefore addresses this gap and explores how galleries can sustain their business in times of digital business transformation. The following four sub-aspects are addressed: (1) the tension between the traditional business model and innovation; (2) the extent to which galleries have already integrated digital channels into their business model; (3) how digital channels can best be integrated into the gallery business model; and (4) the consequences of implementing digital sales channels. Thirteen expert interviews with gallery owners and managers in Vienna were conducted. They were asked about the innovation through digital channels and impact of these channels on their business. The interviews were analysed using the qualitative research method of thematic analysis. The analysis resulted in four major themes: First, it revealed that several factors that characterise the gallery business, such as personal relationships, the need for the physical experience of art, and lack of transparency for maintaining organisational legitimacy, inhibit openness to innovation. Second, it was found that despite these factors, several galleries are already successful in selling art online, with those in the lower price segment more likely to run online shops, while those in the higher price segment are more likely to sell art on the basis of their digital footprint and online presence. Third, since experts agree that online sales are most likely to happen when customers are familiar with the gallery and have already established trust, a multi- and omnichannel approach was found to be the most appropriate way to integrate online sales channels. Fourth, the analysis revealed that customers and galleries are becoming more open to the consumption and sales of art through digital channels, so there is potential for the business model to expand into the digital sphere. The role of the gallery as gatekeeper will continue to play an important role in this process. The results suggest that art galleries with an international focus should focus on the integration of online channels into their overall business model. Concurrently, galleries active in the national market seem not yet to be ready for the digital experience and sale of art.