It was 1992-93 and it had been only a year since Hemant Srivatsa joined Murray & Co. — auctioneers, estate agents and valuers in Chennai — as a partner. One morning, an elderly man arrived with a hefty cupboard. “This is too big for us. I will be glad if you can have it sold,” he said, adding after some thought, “...will be happy if it is more than the transportation charge.” He got back on the cycle rickshaw, leaving the cupboard in Hemant’s charge. It was a good quality, rosewood cupboard and subsequently the auction fetched a handsome sum. The gentleman was back in the shop after receiving the cheque for ₹14,000 Hemant had delivered. Had there been a mistake? Did the cupboard sell for such a high price? He gushed in disbelief. Every weekend for the last nine decades Murrays auctions had drawn the most passionate buyers and sellers.
There was a time when auctioning used to be essentially a brick-and-mortar service. But with more and more auction companies gradually establishing presence online, e-auctions have become common today. Though it has brought a lot of diversity into the market, contained the process of auctioning with the results published, the software that is as easy as plug-and-play has anonymised the bidders. Murrays too has established its digital presence, with an online portal to replicate the physical auction process as much as possible.
“The market demand is growing and the appetite of consumers has increased across segments. The estimated market cap for the Indian auction market is valued at ₹1,500-2,000 crore,” says Siddanth Shetty, vice president, Business Strategy & Operations, AstaGuru Auction House, a solely digital auctioning space operating since 2008.
“The current market is driven by seasoned bidders and consignors who are well versed with the auction process. Each of us has our own USP, process and clientele,” says Ankush Dadha, Director, Bid & Hammer, a multi-category auction house based out of Bangalore.
AstaGuru has a three-step process of signing-in, identification and payment to ensure a hassle-free and secured auction for both clients and the brand. Murrays has customised its software and devised its own set of protocols since the beginning. Rate of contract, its special process removes roadblocks and facilitates seamlessness for repeated buyers of the same product in industrial auctioning, a majority at Murrays. “The price that you get for a product may sometimes be higher or lower than the fixed price and that is because we vet the buyers thoroughly. It is important for the portal in order to tap into the right market and add value to the selling/seller,” says Hemant.
Young, discernible buyers who do not get carried away by the auction drive today’s market. Particularly in art, furniture and contemporary pieces, the demand is centered on mid-century collectibles. They are considered to have much better value for money, with the value appreciating over time and the antiquity going up. The internet with its reports and surveys also serves as a great avenue for information for these enthusiastic buyers.
On the verge of conducting AstaGuru’s 70th e-auction, Siddanth advises collectors of art to do a detailed homework since it is always a subjective purchase that is influenced by the trends of the time. “One must always keep their ears to the ground and validate an acquisition through research and analysis. Tracing an artwork’s exhibition and publication history and its provenance along with the respective artist’s auction performance would help before making a commitment.” In one of Astaguru's Opulent Collectibles auction, a bronze Japanese Samurai figure (lot 120) circa 1890 was signed with a rectangular seal. A few collectors requested images of the signature, in order to delve deeper and gain further insights.
The demand and sentiment varies based on the trend in the city, Ankush shares his insight. “The collectors in Bengaluru are laidback and mercurial. The art auction market is still evolving and the awareness of India’s rich cultural and artistic heritage has been increasing and people are more open to spending on art. The senior and well established contemporary artists’ works are seeing a revival in demand alongside that of the atypical works of the modernists. Old and rare books on Hindustan are also being increasingly sought after,” he tells us.
E-auctions have moved the market from the reach of only the seriously moneyed and the privileged. Slowly buyers are comfortable checking out the articles online. Auctions are no longer thought to be sales in distress and the buyer still sets the price. In fact in order to encourage more activity, many auction houses are also putting out sessions with lots offered without a reserve. Still, right from the authentication of art work to logistics and warehousing of the articles and the absence of a lawful governing or monitoring body, the challenges are abundant. “A majority of the market is driven by a select few categories and artists which can make it a zero-sum game,” Ankush tells us.
There is still room to add more value to the service, says Hemant. Similar to those conducted abroad, auctions conducted by specialists qualified in niche areas would pare down the market. Building a walk-in a café or bar where auctions could begin late in the evening and go on uninterrupted through the night is one of Hemant’s ambitions.
Even when e-auctions fly high, “Live auctions will continue to cast their charm and draw buyers over,” says Ankush.
