Amid Plunging Sales, Phillips Launches Collectibles Platform

The auction house's global sales fell 39 percent in the first half of 2023. Can Dropshop help turn things around?

Phillips' global sales plummeted in the first half of 2023 following a record-setting 2022. They fell to U.S. $453 million from $746 million in the same period last year.

Despite the overall decline, which comes during a cooling art market, CEO Stephen Brooks drew attention to the success of Phillips' watch department, which, 'has continued their unprecedented two-and-a-half-year streak of selling every watch at auction, solidifying their position as the industry leader.'

Phillips is looking to further diversify their business with a new online sales platform for original collectibles.

Dropshop is starting out slowly, releasing a single artist or creator's work in a limited edition each month. First up, launching on 20 August, is an edition of 100 bronze crowns made by Australian hyperrealist Cj Hendry to resemble inflatables you'd find in a party store.

Hendry is not represented by a gallery, but she has 682,000 followers on Instagram. She accepts commissions, sells works directly, and has collaborated with brands such as Christian Louboutin.

Phillips is deliberately seeking out similar artists with strong followings and without representation, promising a 3% commission on resales.

'Created in response to the generational shift of contemporary artists taking a more active role in self-representation ... these regular 'takeovers' are designed to create a dedicated space for artists to directly engage with Phillips' global collecting community, amplifying their own voice in a personal and impactful way,' said Christine Miele, Phillips' New Retail Sales Director, Ecommerce.

Artists are likely not the only ones whose creations will appear on Dropshop.

Amanda Lo Iacono, Global Managing Director of 20th Century & Contemporary Art, said 'we would love for Dropshop to serve all of the categories that Phillips offers – from Editions to Jewels.'

Phillips' other departments include Design, Photographs, and Watches.

'I don't think the line between luxury and art is as clear as it used to be, with collectors often acquiring works across categories. The craftsmanship you might see in jewellery and watches certainly displays a level of artistry that can be appreciated by those across the industry,' Lo Iacono said. —[O]