Date: Fri 05-Feb-1999

Publication: Ant

Author: JUDIR

Quick Words:

Christie's-Internet-eBay

Full Text:

Christie's Internet Initiatives

NEW YORK CITY -- One week after Sotheby's announced that it is investing $25

million in an online auction site, Christie's has publicly acknowledged that

it too has been investigating the possibilities of selling in cyberspace.

Though not unexpected, the announcement was short on details, leaving some

bystanders wondering if Christie's had been caught off guard by its rival's

announcement.

"During the last 18 months, Christie's has been evaluating the potential

benefits of offering auction sales on the World Wide Web to our existing and

future clients," said Christopher M. Davidge.

According to Christie's chief executive officer, "The analysis has included a

global review of existing market trends, current Internet auction models, as

well as related technologies. Most importantly, it has included a thorough

study of the needs of both buyers and sellers when using the Internet as their

auction venue."

Sothebys.com, which will be launched this summer with an online sale of

baseball memorabilia from the collection of Yankees limited partner Barry

Halper, differs dramatically from other Internet auction services such as

eBay, which sells a broad array of inexpensive collectibles. Sotheby's, by

contrast, is initially looking at lots of $10,000 or less, the lower end of

its market but still far more costly that most of what sells on the Internet.

The York Avenue auction house has promised to guarantee all objects sold

online, and plans to charge a ten percent buyer's premium but no seller's

premium.

An important feature of sothebys.com is its associates program. Through it,

dealers around the country are being recruited as onsite vendors. Sotheby's

associates pay no seller's premium, providing they waive their right to offer

merchandise on any other Internet auction site for a period of two years. Some

say Sotheby's exclusivity clause is meant to preempt a similar venture by

Christie's.

Christie's plans to launch its online service in the second half of 1999, when

it moves to its new facility at 20 Rockefeller Plaza. Said Davidge,

"Christie's Internet initiatives are being designed to incorporate the high

standards prized by our clients and to reflect the needs of our community of

collectors, dealers, scholars and art institutions. These initiatives will

integrate the best practices that we've seen in all the existing auction

models."

He continued, "Christie's will be involved in the authentication and the value

estimation of the property to be offered for sale on the Internet and will not

act solely as a clearing house. The services offered will include client

confidentiality, which is fundamental to the way Christie's undertakes auction

business. We also intend to offer a competitive commission structure for

selling works of art on the Web."

He concluded, "Christie's will not, however, be proposing any arrangements

that restrict competition in the marketplace, as we believe this runs counter

to the philosophy of the Internet and undermines the essence of any auction

market."

Specific details regarding Christie's Internet initiatives will be announced

on March 1.