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home life | Sotheby’s Alfredo Gangotena
Master of Marketing Alfredo Gangotena is taking the Sotheby’s brand in a new direction
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t’s a name synonymous with excellence, a company that’s been around since 1744 — Sotheby’s — renowned throughout the world for exhilarating auctions of museumquality art. A major multinational corporation boasting a stellar reputation could rest on its laurels and stick to tradition, but that’s not going to happen now that a new chief marketing officer, Alfredo Gangotena, is on the job. As we discovered when Gangotena was in town to launch a new marketing initiative with his primary affiliate, TTR Sotheby’s International Realty, he isn’t someone who plays it safe. In April, for example, he partnered with the online auction giant Ebay to set in motion a groundbreaking new streaming service. “Our auctions do not change, the works of art do not change — they are available at sothebys.com,” says Gangotena, who previously worked at Mastercard and Disneyland Paris. “But at the same time they’re now visible to the 150 million potential buyers on Ebay. It is a new entrance point to the Sotheby’s house.” Reaching a new audience of potential buyers, at a range of price points, is something Gangotena cannot stress enough. Increased accessibility is causing a revolution in the art world, he says, adding that there can be no turning back now. “Art is a common, widely-spread passion,” Gangotena says, noting that sometimes people just need to be introduced to it in order to realize this passion in themselves. Building a collection, he maintains, doesn’t have to be restricted to the uber wealthy. “You can acquire a Picasso for $100 million as well as perhaps for $10,000, both being signed by the same genius artist,” Gangotena says. “There is definitely a pleasure to owning a piece of art of such magnificence, independent of the price point. As I like to say, love for the piece of art is not an equation of the dollar sign.”
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By Erica Moody
Alfredo Gangotena at The Hay-Adams Hotel (Photo by Sean Shanahan Photography)
According to Gangotena, two current trends are changing the scope of the art auction business. “One is an incredible change in the acceleration of wealth around the planet. We see that not just in the United States but also in the emerging markets — China, Russia, Brazil, to name a few.” The second trend, he adds, is that “many more contemporary living artists are producing art that is pleasing many more people.These two phenomena combined means that the world of the arts is expanding. There are more buyers, more collectors, more sellers ... not just at the top end but throughout price ranges. This accessibility to art allows Sotheby’s to expand and cater to many more people than in the past.” This expansion and inclusion of contemporary artists is seen in projects such as a current Sothebys’ gallery exhibition curated by hip-hop artist Drake. The exhibition, featuring contemporary works by black American artists such as Kara Walker and Jean-Michel Basquiat, explores the relationship between music and art, and is open to the public at Sotheby’s New York headquarters.
To explain this focus on reaching new buyers, Gangotena cites a TEFAF (The European Fine Art Fair) study that reveals just how small the number of people owning art is throughout the world. Of the 32 million households on the planet with at least $1 million in liquid assets, only 600,000 own art. “This means that the expansion potential is phenomenal,” he says. “Currently, 98 percent of millionaires do not have art in their homes.” Rather than competing with Christie’s, Phillips or Bonham’s for existing clients, Gangotena thinks that 98 percent is where Sotheby’s should be looking — with a strategic focus placed on people who are on the verge of buying art. This perspective is something he learned from his years with Mastercard. “For many, many years, Mastercard saw Visa as its archrival and was fighting for market share, one bank at a time, until more recently when the same equation was drawn. Only 15 percent of financial transactions are made with credit cards; 85 percent are still cash or checks worldwide. So, rather than focusing on and fighting for the 15 percent, you now
WA S H I N G T O N L I F E
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Real Estate Insights Mark Lowham, managing partner
TTR Sotheby’s International Realty
How does the high-end real estate market in Washington differ from other major cities where Sotheby’s is active? Compared to other global capitals, Washington remains a tremendous value. We see significant potential for future appreciation in Washington real estate, particularly at the high-end.
David DeSantis, Jonathan Taylor, Michael Rankin, Mark Lowham and Derrick Swaak of TTR Sotheby’s International Realty (Photo by Sean Shanahan Photography)
have credit card companies, led by Mastercard, If you think about it, there is a perfect synergy attacking the 85 percent potential.” between the two at a crucial moment where A new magazine might attract some of people change lifestyle — and the partnership the 98 percent as well, which explains why works hand in hand.” Sotheby’s will begin bringing art to new and “Art and Home,” he says, is a prime existing clients’ doorsteps this month with the example of this synergy. launch of “Art and Home.” The new lifestyle With new developments like the publication will feature editorial content about magazine launch and the partnership with major collectors, e B ay, S o t h e by ’s beautiful houses, may be working to interior designers and expand its reach, but individual works of it won’t be to the art.The magazine will detriment of existing combine the art and client relationships. auction aspects of the Those will always be business with the real nurtured, Gangotena estate element as well. insists, because the Here it should be company recognizes noted that Sotheby’s that it would not Realty, an affiliated be where it is today licensee, is at the very without the faithful highest end of the collectors who have real estate market. remained with the “The relationship house, sometimes for The cover of the first issue of “Art & Home” between the auction many generations. (Image courtesy TTRSIR) house and the realty There is even an house is natural because we cater to the same insiders club, called 1744, that hosts events audience — rather high-end, affluent and to cultivate new generations of buyers. high-net-worth,” Gangotena says. “When you Such relationships are irreplaceable, he says, acquire a new home or move to a new place, comparing them to one’s doctor or lawyer. very often you will be changing the decor “That trust is very special, and so is the and the interior design of that place, so it’s a legacy,” he says. “A Picasso is just a Picasso. perfect moment for Sotheby’s auction house But a Picasso recommended by Sotheby’s, to be able to provide art to those new homes. now that is something.”
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What percentage of your real estate business is international? Thirty-four percent of our largest regional submarket, Fairfax County, is foreign-born. The data is comparable in Montgomery County and roughly 16 percent of the District of Columbia is foreign-born. This region is very much an international market. In addition, we see an increasing number of clients from Asia and the Middle East, particularly in Northern Virginia and close-in Maryland, and they are very focused on the top tier of the market. How is the on-line environment for real estate listing changing the market for your company and what are you doing to capitalize on this? As consumers increasingly depend on on-line resources for information, a firm’s brand becomes critically important in order to rise above the noise. With a brand that has a 250-year head start over most brokerages, our website, sir.com, captures over a million unique visitors per month, and they spend an astounding 11 minutes per visit. In addition, consumers want good content, and we deliver that in a format that is gorgeous and engaging — in 16 different languages and multiple global currencies. How has your affiliation with Sothebys led to recordbreaking growth in the National Capital Region? Our affiliation with Sotheby’s inspires us every day to achieve new records, not only in terms of prices, but also in the innovation, marketing and service we provide to our clients. The Washington market has responded well, and our year-over-year growth of 18.6 percent set the market pace for the national capital region. As part of that success, we achieved the highest singlefamily home sales in both the District of Columbia and Northern Virginia, and we set the record for the most expensive condominiums ever sold in both the District and Maryland. Washington is at the heart of a global market and our 280 associates deliver that market to their clients every day.
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