Traditionally, art investment was considered a hobby for the rich and excluded the younger generation who could not afford to purchase art at extravagant prices. However, things are changing. Thanks to various online platforms, both art subscription and art investment for younger generations are gaining popularity.
One of the most popular online platforms that enables users to view and actually make small investments in art from across the world is PINZLE. The company was founded in 2017 and was the first to provide art subscription service globally.
The platform provides a subscription that sends new art works to subscribers every month, with options to add frames, where it replicates the traditional per- monthly magazine model.
Riding the wave of online art subscription services, Jin Jun-hwa, the CEO of PINZLE, explained how the platform and art subscription model continue to grow. According to PINZLE, 85 percent of users are first-time art investors. This is in stark contrast to the traditional art investments made by only those who could purchase and own individual art pieces.
“PINZLE’s platform enables easier access to arts for people and we are still trying our best to provide a simpler way for the youth to approach artwork,” said Jin. “The art subscription service is for beginners whose taste for art has not yet been established.”
For those with little understanding of the art world and art itself, there are options for curated subscriptions, where they can receive art selected by PINZLE’s curators. According to Jin this eventually leads those to find pieces that match their tastes.
While art subscription services enable the young to enjoy and explore art in their own living spaces, online platforms that encourage younger generations to participate in art investment also exist.
“Art n Guide” is a platform where users can pool resources for a joint purchase by investing a small sum of money in a famous artwork that often cost a fortune. The art is exhibited in the company’s gallery afterwards and investors wait for the piece to be sold. When the work is sold at a higher price the difference made by sales is distributed to the investors.
As younger generations are searching for unique methods of investment, art investment is on the rise. Platforms like Art n Guide are aiding this momentum by simplifying the entire process.
Kim Jae-wook, Art n Guide’s CEO, mentioned that in 2020, its subscriber base increased by 300 percent compared to 2019. He also attributes this to the 2020 trend of devoting time to interior design in young people’s homes.
“We purchase well known art works for joint purchase in advance and hold them in stock,” Kim said. “This provides opportunities for customers to invest in famous art works with little money. We do not receive fees for joint purchases and prevent the possibility of moral hazards by holding a 5-10 percent stake in all jointly purchased work.”
Blockchain is heavily emphasized in the process of investment. Kim mentioned that blockchain is difficult to counterfeit and that it gives investors a way to transparently manage their investments and money on their platform.
“As 90 percent of the art market is formed offline, high rent and gallery costs result in the high cost of artwork,” Kim said. “As a result, Art n Guide are bringing galleries to online platforms to boost sales and introduce the art market to a wider public.”
As trends such as interior design and group art investment become more accessible to younger generations, the art market has the potential to shift dramatically. Art investment is no longer confined to those with resources; it continues to become a more open industry where art is enjoyed by a growing number of people.