“One of the primary responsibilities of
 a gallery is to position the artist and its work outside the commercial market. It’s the relationship with non-market entities such as curators, museums, writers and critics which is essential.”

Since the art market downturn, a new contemporary Indian art scene is emerging. Although contemporary Indian art has been virtually absent from the auction market since September 2008, where it accounted for 51% of the overall value of Modern and Contemporary Indian sales, it now only accounts for 9%. However, this does not reflect the true state of contemporary Indian art. It just shows that the market has moved to where it really belongs- the primary market.

Past practices of using the auction market to establish a sense of ‘quality’ and provenance through rapidly rising prices, was short-sighted and a bubble that had to burst – and the correction is probably the best thing that has happened to Indian contemporary art.

It’s a misconception that art history is made in the auction rooms. The auction platform should only re-confirm or re-discover an artist’s cultural and art historic position. However, when this market tries to create cultural value (particularly when it is absent) through artificially high prices – one needs to be very careful. But as buyers and collectors are becoming more knowledgeable and discerning, it is going to become increasingly difficult to succeed in these manipulative games.

The most effective solution to the above problem sits with the galleries, and the role and responsibility that it entails to promote an artist. As art market researchers, we consider the galleries to be the single most important factor in the long-term success of an artist. Yes, auctions have the ability to boost short-term values of an artist’s work – but this is seldom in the long-term interest of neither the artist nor the gallery. One needs to ask the question: how can one justify the economic value of a work? There was a common view in the past years that high prices must equal high quality and importance. However, high prices should derive from high quality and not the other way around.

One of the primary responsibilities of a gallery is to position the artist and its work outside the commercial market. It’s the relationship with non-market entities such as curators, museums, writers and critics which is essential, as it helps contextualise the work based on artistic merits and not on a simple notion of demand and supply.

In order to achieve this, the gallery’s relationship to the artist should be more like a marriage than a passing fling. It is the commitment and mutual respect that forms the strong bond between the gallery and its artists, and it’s this special connection that provides the foundation for a solid and stable long-term market.

Every major contemporary artist of today is born out of a strong relationship between the gallery and the artist. Look at Cindy Sherman, arguable the most important female artist of today. She has been working with Metro Pictures in New York since 1980, and together they have played a hugely significant role in validating contemporary photography within the contemporary art market.

Where would Damien
 Hirst have been without 
the initial support of White Cube gallery in the early 1990s, and although Hirst has taken many of the commercial matters in his own hands, White Cube remains one of his most important primary dealers. Jeff Koons relationship with Ileana Sonnabend (Sonnabend Gallery and the first wife of the legendary dealer Leo Castelli) was a key factor in bringing Koons to the international art market. The exhibition ‘Made in Heaven’ (1991), featuring the artist and his then wife Cicciolina (Ilona Staller – a former porn star), became
a turning point in his career and can be largely credited for his re-positioning in the contemporary art history and the following commercial success. After almost 25 years, Sonnabend gallery remains one of Koons’ main galleries.

What characterises most of these relationships is their long-term nature. Most of these artists didn’t experience instant commercial success, but their artistic and commercial importance grew over a long period of persistent efforts in promoting and cultivating the market for the artist and its work.

So what characteristics should one look at in a gallery?

LONG-TERM VS SHORT-TERM: One of the fundamental principles of a reputable gallery is the long-term commitment to its artists and 
its artistic programme. In a relatively new contemporary
 art market, like India, long-term commitment is sometimes hard to prove – as the 
scene is still emerging. But the downturn has exposed the
 flaws of short-term, opportunistic galleries versus galleries 
with a long-term vision and
 strong commitment. Many of 
the galleries that survived the last downturn are well-positioned to lead in the second phase of the Indian contemporary art market.

THINK GLOBAL, ACT LOCAL: This is a phrase often used in business, where multinationals are encouraged to build local roots,
 but is equally relevant to
the Indian art market. The strength of a gallery lies in its ability to be a powerful local player, with strong access to creative talents and
 a thorough understanding 
of the cultural and historic roots of the Indian art scene and market. However, it is also critical that the gallery has access to the global art market, through international art fairs, biennials, museum exhibitions and with a wide curatorial network, as this would ensure that the artist is positioned within an international contemporary art context. India needs strong international galleries to promote the Indian art scene in a global art market, and it is a welcome sign to see more Indian galleries present in major art fairs such as Art Basel in June this year.

INCUBATORS VS. MARKET MAKERS: Different galleries serve different functions in the art market. Many of the younger galleries act as incubators for younger artists, and are crucial in the early stages of an artist’s career. However, as the market matures, many artists move to more established galleries which are in a stronger position (financially and in terms of their extensive network) to bring artists to the next level. For younger artists, it’s often important that the gallery belongs to the same generation as the artists, and where both the gallery and the artist share common values, interests and concerns. Over time many of these ‘incubator’ galleries will become part of the established circuit, as a direct result of their track-record in finding and cultivating young talents.

CONTROL: One of the problems with many of the emerging art markets is the issue regarding artist representation. During the boom years, many of the successful contemporary artists were represented by multiple galleries and dealers. The lack of control over the artist’s output and selling strategies, meant that the market got flooded by works, many of these of inferior quality and produced in a haste to satisfy the huge demand. There was little sense of editing or coaching from the galleries side – largely because no one had the incentive or control to do so. The problem of free-riding became widespread, and instead of showing restrain and protecting the long-term health of the market, many galleries decided to cash-in instead.

Single-representation (at least in one geographical market) is critical in building an artist’s early career. By carefully controlling a market through targeted placement of key works in public institutions and major private collections, price control and tight editing of an artist’s output – a gallery can build a healthy foundation for an artist’s future development. Protecting an artist from the market fads should be one of the gallery’s main concern, however to achieve that, an exclusive relationship between gallery and artist needs to be present.

INSTITUTIONAL ACCESS: Another important aspect of a gallery is to cultivate relationship with independent curators, museum institutions and other not-for-profit arts organisations. It is these organisations that adds ‘cultural value’ and validates the importance of an artist. In a market like India, where these public institutions are lacking, it is paramount that a gallery has access to museums (public and private) and curators abroad, and/or work closely with a foreign gallery that has these relationships already.

INTERNATIONAL GALLERY PARTNERSHIPS: One effective way of creating an international platform for an artist is to work closely with foreign galleries. This strategy is often used to tap into new collectors and institutions in geographical locations inaccessible to a domestic gallery, but also to introduce new artists from the partnership gallery to a domestic Indian audience.

The above aspects are some of the important factors that ArtTactic uses in assessing the quality of a gallery, and hence the potential of the artists it represents. It’s a simple checklist, which enables collectors and buyers to differentiate between commercial-only galleries and galleries that aim to position Indian contemporary art as an equal partner to the rest of the world’s contemporary art markets.

There is no doubt that the Indian contemporary art scene is growing up, and what we see in 2010 is a more mature and better place for discovering, learning, collecting and enjoying contemporary Indian art – and this is largely thanks to its emerging, but growing gallery scene.