Daniel Langer Explores the Future of Luxury Auctions in The New York Times

As the traditional art market faces a slowdown, auction houses like Sotheby’s and Christie’s are turning to luxury goods and exclusive experiences to fill the gap. In a recent feature by The New York Times, Pepperdine Graziadio faculty member Daniel Langer weighed in on this industry shift, highlighting both its opportunities and challenges.

“The luxury resale market presents a compelling opportunity for auction houses,” Langer explains. “Storytelling is a critical success factor in the luxury industry, and auction houses excel in this area.” He cites Sotheby’s marketing strategy for the infamous duct-taped banana auction as an example of how narrative-driven sales can generate buzz.

However, Langer also warns that auction houses face significant hurdles when competing with established luxury brands. Unlike companies like LVMH and Kering, which control their pricing and inventory, auction houses operate in a resale market with lower profit margins and limited scalability. “These disparities could limit the overall financial impact of luxury for auction houses,” he notes.

As ultra-high-net-worth individuals increasingly prioritize experiences over physical goods, Sotheby’s and Christie’s have started offering exclusive travel and fashion-related experiences. This trend aligns with the growing experiential luxury market, which reached a record $16.3 billion in 2024. Whether these shifts will redefine the auction industry remains to be seen, but as Langer suggests, success will depend on how well auction houses can craft compelling narratives around luxury.

Read the full article here.