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PESQUISA SETORIAL

SECTORIAL STUDY THE CONTEMPORARY ART MARKET IN BRAZIL 2ND EDITION, JULY 2013

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TABLE OF CONTENTS FOREWORD ...........................................................................05 PRESENTATION .....................................................................07 THEME LINES ........................................................................08 STUDY’S OBJECTIVES ..........................................................08 UNIVERSE OF STUDY AND METHODOLOGY ........................08 RESPONDING GALLERIES......................................................09 LIMITS AND CONTRIBUTIONS ...............................................10 KEY FINDINGS .......................................................................10 PROFILE OF GALLERIES ....................................................13 TYPOLOGIES ......................................................................13 GENERATIONAL CUTTING ..................................................13 REGIONAL DISTRIBUTION ..................................................14 SCALE ...................................................................................17 BUDGETARY SCALE ...........................................................17 EXHIBITION AREA ...............................................................18 ARTISTS ..............................................................................19 SOLO AND GROUP SHOWS ..............................................19 PUBLIC ...............................................................................20 STAFF ...................................................................................20 AVERAGE SALARY ..............................................................21 ART FAIRS ..........................................................................22 MODUS OPERANDI .............................................................23 CULTURAL DIMENSION AND MAIN ACTIVITIES .................23 ADMINISTRATIVE-FINANCIAL CHARACTERISTICS ............................................................24 THE PRIMARY MARKET AND THE ARTISTS .......................24 2

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PRICING ..............................................................................25 PARTNERSHIPS ..................................................................25 SECONDARY MARKET........................................................25 OBSTACLES ........................................................................25 OPERATIONAL EXPENSES .................................................25 GROWTH AND DYNAMICS OF THE SECTOR ...................27 INDICATORS OF GROWTH .................................................27 SALES .................................................................................28 PRICE ..................................................................................28 BUSINESS PLATFORMS .....................................................28 NATIONAL FAIRS .................................................................29 PROFILE OF COLLECTORS ................................................29 INTERNATIONAL INSERTION .............................................31 INTERNATIONALIZATION INDICATORS ...............................31 FOREIGN ARTISTS ..............................................................31 INTERNATIONALIZATION STRATEGIES ...............................31 INTERNATIONAL INSERTION OF REPRESENTED ARTISTS ....................................................32 SALES TO FOREIGN COUNTRIES .......................................33 DESTINATION OF SALES ....................................................33 EVOLUTION OF THE EXPORTS ...........................................34 CONCLUSIONS ....................................................................37 AFTERWORD .........................................................................39 CREDITS ................................................................................43 3

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FOREWORD

The decision to implement an annual Sectorial Study that monitors the development of the Brazilian contemporary art sector is, by itself, a very important achievement that reveals the growing maturity of the segment.

Until very recently, the group of Brazilian galleries in the primary market conducted its business in an isolated and empirical manner. The positive perception that, as a group, they constitute a very important sector of the country’s economy is quite a new phenomenon.

This change has brought about a series of developments including, as the most significant one, the establishment of a Commercial Intelligence Service as a basis of planned work.

The galleries realized that, by sharing strategic information among themselves and with their representative sectorial entity, they could build a set of precious data that would serve not only for the mobilization of the sector as a whole, but also to define in a more conscious manner their own individual business decisions.

Currently, the Latitude Sectorial Study, the main product of the Commercial Intelligence Service of the Project, is essential for the group to build strategies, establish goals, and demonstrate the results of the Project’s accomplished activities. This initiative launches a new phase of professionalization and credibility for the sector.

Eliana Finkelstein ABACT President (2012-2014) Christiano Braga Apex-Brasil Project Manager Mônica Novaes Esmanhotto Latitude Project Executive Manager 5

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PRESENTATION

The contemporary art market in Brazil is currently experiencing a unique and very positive moment, one of maturity and expansion. The economic growth of the country and the quality of national artistic production have laid down a solid foundation for the growth of the business and the appearance of new galleries.

The dynamics and the growth of the market come accompanied, for the first time, by a movement of professionalization and sectorial organization that favors its acknowledgement as an important part of the country’s creative economy. An important milestone of this process was the creation, in 2007, of the Brazilian Association of Contemporary Art (ABACT) and of the Latitude Project – partnership between ABACT and the Brazilian Trade and Investment Promo-

tion Agency (Apex-Brasil) – devoted to promoting Brazilian contemporary art galleries in the international market.

The Latitude Sectorial Study was created within this context, as a response to the needs, identified by ABACT and by Apex-Brasil, of mapping the primary market of contemporary art in Brazil and of understanding the key factors of its development.

The data collection started in 2011, and the first results were revealed in 2012. The impact of the 1st edition of the Sectorial Study confirmed the relevance of the initiative, determining its annual updating.

We thank all the people involved in this process, especially the responding galleries.

Ana Letícia Fialho Latitude Head Researcher 7

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THEME LINES

The Sectorial Study data was grouped in 6 large themes, which form the chapters of this report: Profile of the galleries, which illustrates the typological diversity as well as the generational and regional differences of the galleries; Scale, containing the detailed data on volume of business, infrastructure, number of represented artists, number of exhibitions, composition of the public, number of workers, average salary, and participation in fairs; Modus operandi, which highlights the main activities of the galleries in the primary market, administrative-financial characteristics, types of relationships with the artists, partners and collaborators, participation in the secondary market, and difficulties faced for the expansion of the business; Dynamics and growth of the sector, which presents the developmental indicators for the sector, information on sales, prices, main business platforms, and collectors’ profiles; International insertion, which deals with the different aspects related to the internationalization of the galleries, such as the representation of foreign artists, internationalization strategies, volume of sales abroad, international insertion of the represented artists, destination of sales and evolution of exports; lastly, Conclusions, where we present the main findings and observed tendencies of the Study.

nesses in the sector.

• Being the source of objective, organized and trustworthy data on the sector for the agents of the art system, public managers, partners, specialized media and other interested parties.

UNIVERSE OF STUDY AND METHODOLOGY The 2nd edition of the Sectorial Study comprises a sample universe of 44 galleries of the primary market of contemporary art associated to ABACT and/or the Latitude project. The response rate was of 84% 1.

The number of galleries involved increased compared to the 1st edition of the Study – from 32 to 44. The sample universe became more heterogeneous, and the number of newer galleries increased significantly.

The widening of the analyzed gallery base impacted the results and, in some cases, explains the variation of the numbers, as we will see in the following chapters.

The ensemble of galleries included in this Study does not make up the total number of active galleries in the primary market; but, as one can observe by the list of responding galleries presented below, the most active galleries, professionalized and internationalized, are fully analyzed. Thus, the empirical basis is quite representative. This information is also an important element of this Study, for we can determine exactly the universe to which it refers to, different form anonymous questionnaires with low response rates that make up the data used in some international reports on the art market.

OBJECTIVES • Providing the Latitude Project and ABACT detailed information on the sector that may support the planning and development of their activities.

• Fostering the creation of management and commercial promotion tools by Latitude, ABACT and the involved galleries, aimed at the improvement and expansion of busi-

52 galleries associated to Latitude Project and ABACT were contacted, having as a reference the month of December of 2012.

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RESPONDING GALLERIES • A GENTIL CARIOCA • AMPARO 60 GALERIA DE ARTE • ANITA SCHWARTZ GALERIA DE ARTE

• GALERIA MARÍLIA RAZUK • GALERIA MILLAN • GALERIA MANOEL MACEDO • GALERIA MURILO CASTRO

• ARTUR FIDALGO GALERIA • ATHENA CONTEMPORÂNEA • BARÓ GALERIA • BOLSA DE ARTE DE PORTO ALEGRE • CASA TRIÂNGULO • CELMA ALBUQUERQUE GALERIA DE ARTE • CENTRAL GALERIA • CHOQUE CULTURAL • EMMA THOMAS • GALERIA BERENICE ARVANI • GALERIA DA GÁVEA • GALERIA EDUARDO FERNANDES • GALERIA ESTAÇÃO • GALERIA FORTES VILAÇA • GALERIA JAQUELINE MARTINS • GALERIA LAURA MARSIAJ • GALERIA LEME • GALERIA LUISA STRINA

• GALERIA NARA ROESLER • GALERIA OSCAR CRUZ • GALERIA PILAR • GALERIA RAQUEL ARNAUD • INOX GALERIA • LEMOS DE SÁ GALERIA DE ARTE • LOGO • LUCIANA BRITO GALERIA • LUCIANA CARAVELLO ARTE CONTEMPORÂNEA • MENDES WOOD DM • MERCEDES VIEGAS ARTE CONTEMPORÂNEA • PARALELO GALLERY • PROGETTI • SÉRGIO GONÇALVES GALERIA • SILVIA CINTRA + BOX 4 • VERMELHO • GALERIA VIRGÍLIO • YBAKATU ESPAÇO DE ARTE • ZIPPER GALERIA 9

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LIMITS AND CONTRIBUTIONS This report brings, quantitative and qualitative primary data, gathered through an electronic form containing 68 main questions and several secondary questions that total more than 100 questions 2.

The data collection process of the 1st edition of the Latitude Sectorial Study revealed the need for revision/adjustment of the presentation and the wording of some questions. For this reason, the questionnaire for the 2nd edition of the Study is therefore different, with more questions than for the 1st edition in 2011/2012.

Not every question was answered by every gallery, but the resulting information is good enough for a comprehensive and deep diagnosis of the sector.

Besides the questionnaire, the responding galleries were contacted in person, as well as by e-mail and telephone, allowing for the mainly qualitative verification of information and enhancement of the results. In addition, data related to the history of the Latitude project were also used, as well as the data supplied by Apex-Brazil related to the performance of the galleries in international markets, as well as the volume of the exports.

Even though the need to deepen and detail the information still persists, in addition to complementing it with data about other important market segments, such as the secondary and auction markets, we expect that the Latitude Sectorial Study contributes to a better understanding of an extremely dynamic and growing sector.

The preparation of the questionnaire was a collective process, of which Alessandra d’Aloia, vice-president of ABACT, Mônica Novaes Esmanhotto, manager of the Latitude Project, Christiano Braga, Project manager of Apex-Brasil, the members of the managing committee of the Latitude Project and Leonardo Assis, information manager, participated.

We also analyzed available studies on other markets, such as Holland and France, and will bring some specific comparative data, since there are no updated and available research using similar methodology and analyzing all the themes we are working with. Finally, it is important to mention the debates we’ve had with other researchers on the theoretical and methodological challenges of studies of this type.

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MAIN RESULTS NEW AND INTERNATIONALIZED MARKET • The Brazilian contemporary primary art market is fresh, dynamic, and in process of expansion and internationalization.

• 25% of the galleries belong to a brand new generation which started after 2010, 43% were created in the 2000’s and 32% have been in business for more than 13 years.

• 84% of the sample has participated in international fairs in the last 5 years and 60% made international sales in 2012. In addition, 75% of the Brazilian galleries work with foreign artists and 34% have partnerships with galleries abroad.

BUSINESS PLATFORMS • Art fairs are, excluding the galleries’ own space, their main business platform, closing around 38% of deals. SP-Arte is the fair that generates the biggest business volume according to 59% of the galleries, followed by ArtRio and Art Basel Miami Beach, considered the most important fairs by 13.5% and 11.5% of the galleries, respectively.

EXPORTS 3 • Increased from US$ 18 million registered in 2011 to US$ 27 million in 2012.

• The main destinations of exports were the United States, Great Britain, Switzerland, France and Hong Kong. Standing out was a growth of more than 200% in export volume to Great Britain, and Hong Kong already holding 5th position in the ranking.

SECTOR GROWTH TREND CONFIRMED • The average growth among researched galleries was 22.5%, maintaining the trend observed in 2010 and 2011, when the sector registered an accumulated growth rate of 44%.

• 81% of the galleries increased their sales volume in 2012, while others remained unchanged, and only 1 gallery had negative growth.

• 70% of the galleries also hired more staff during that period.

NATIONAL MARKET X INTERNATIONAL MARKET Sector growth is observed both nationally and internationally.

• Sales in the international market represent 15% of the volume of business • Sales in the national market represent 85% of the volume of business • In Brazil and abroad, private collectors are the main purchasers, with 71% and 11.5% of the total sales in 2012 respectively.

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Values in dollars FOB. Source: Planning and Budgeting Unit of Apex-Brasil.

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GALLERIES PROFILE

TYPOLOGIES The profile of the researched galleries is quite heterogeneous. There are small and internationalized galleries; medium-sized galleries that work mainly in the local/regional market; large galleries that work with renowned artists and that participate in the international market; recently created galleries that work mainly with young Brazilian artists while others have more than 50% of their artists of other nationalities; galleries that value a specific type of production, such as street art; galleries that work with different media and artistic expressions that aren’t yet part of a consolidated business model, such as performance. Based on the specificities of each gallery, we could possibly create a typology for each one of them. As a common trait,

businesses are run in a subjective and personal way; the profile and the management models of the galleries are clearly linked to the owner’s personality. A majority (80%) of the galleries have 1 or 2 owners.

GENERATIONAL CUTTING The Study is comprised of different generations of galleries, whose founding dates reveal the evolution of the contemporary art market in Brazil, where traditional galleries like Luisa Strina and Raquel Arnaud, created in the 1970s, co-exist with newer galleries established from 2010 on, such as Athena Contemporânea, Inox, Mendes Wood DM and Zipper.Inox, Mendes Wood DM and Zipper.

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NR. OF RESPONDING GALLERIES ACCORDING TO FOUNDING DECADE 20 18 16 14 12 10 8 6 4 2 0

• GALERIA LUISA STRINA • GALERIA RAQUEL ARNAUD

1970

• BOLSA DE ARTE DE PORTO ALEGRE • CASA TRIÂNGULO • GALERIA MANOEL MACEDO • GALERIA MILLAN • GALERIA NARA ROESLER

• AMPARO 60 GALERIA DE ARTE • CELMA ALBUQUERQUE GALERIA DE ARTE • LEMOS DE SÁ GALERIA DE ARTE • LUCIANA BRITO GALERIA • GALERIA MARILIA RAZUK • SILVIA CINTRA + BOX 4 • YBAKATU ESPAÇO DE ARTE

1980

1990

We can observe the clear expansion of this market in the last decade. Today, more than 50% of the galleries that form ABACT and the Latitude Project were created from

• A GENTIL CARIOCA • ANITA SCHWARTZ GALERIA DE ARTE • ARTUR FIDALGO GALERIA • GALERIA BERENICE ARVANI • CHOQUE CULTURAL • GALERIA EDUARDO FERNANDES • EMMA THOMAS • GALERIA ESTAÇÃO • GALERIA FORTES VILAÇA • GALERIA DA GÁVEA • INOX GALERIA • GALERIA LAURA MARSIAJ • GALERIA LEME • MERCEDES VIEGAS ARTE CONTEMPORÂNEA • GALERIA MURILO CASTRO • GALERIA OSCAR CRUZ • PROGETTI • VERMELHO • GALERIA VIRGÍLIO

2000

• ATHENA CONTEMPORÂNEA • BARÓ GALERIA • CENTRAL GALERIA • GALERIA JAQUELINE MARTINS • LOGO • LUCIANA CARAVELLO ARTE CONTEMPORÂNEA • MENDES WOOD DM • PARALELO GALLERY • GALERIA PILAR • SÉRGIO GONÇALVES GALERIA • ZIPPER GALERIA

2010

the year 2000 on, many of them less than 2 years ago.

In the current context, the number of new galleries being created is staying consistent.

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DISTRIBUTION OF GALLERIES BY CITIES PORTO ALEGRE 2% • BOLSA DE ARTE DE PORTO ALEGRE

2%

CURITIBA

• AMPARO 60 GALERIA DE ARTE

2%

• YBAKATU ESPAÇO DE ARTE

9% SÃO PAULO • BARÓ GALERIA • GALERIA BERENICE ARVANI • CASA TRIÂNGULO • CENTRAL GALERIA • CHOQUE CULTURAL • GALERIA EDUARDO FERNANDES • EMMA THOMAS • GALERIA ESTAÇÃO • GALERIA FORTES VILAÇA • GALERIA JAQUELINE MARTINS • GALERIA LAURA MARSIAJ • GALERIA LEME • GALERIA LUISA STRINA

BELO HORIZONTE • CELMA ALBUQUERQUE GALERIA DE ARTE • LEMOS DE SÁ GALERIA DE ARTE • GALERIA MANOEL MACEDO • GALERIA MURILO CASTRO

57% • GALERIA MARÍLIA RAZUK • GALERIA MILLAN • GALERIA NARA ROESLER • GALERIA OSCAR CRUZ • GALERIA PILAR • GALERIA RAQUEL ARNAUD • GALERIA VIRGÍLIO • LOGO • LUCIANA BRITO GALERIA • MENDES WOOD DM • PARALELO GALLERY • VERMELHO • ZIPPER GALERIA

RECIFE

28%

RIO DE JANEIRO • A GENTIL CARIOCA • ANITA SCHWARTZ GALERIA DE ARTE • ARTUR FIDALGO GALERIA • ATHENA CONTEMPORÂNEA • GALERIA DA GÁVEA • INOX GALERIA • LUCIANA CARAVELLO ARTE CONTEMPORÂNEA • MERCEDES VIEGAS • PROGETTI • SÉRGIO GONÇALVES GALERIA • SILVIA CINTRA + BOX 4

REGIONAL DISTRIBUTION The concentration of the market in São Paulo is evident, followed by an important representation of galleries in Rio de Janeiro and few galleries in the other capitals, as previously observed in the 1st edition of the Study.

The State of São Paulo has the highest national GNP, and its capital is the financial center of the country. Rio de Janeiro is an important cultural and economic center in the national scene. However, the economic strength of the cities is not enough to explain the concentration of the market. Brasília, for instance, has the biggest GNP per capita of the country (almost twice as much as São Paulo’s), but does not house an active art market.

Both São Paulo and Rio de Janeiro have dynamic art systems comprised of a large number of agents and equipment: artists, art schools, critics, curators, alternative spaces, artistic residences, public and private institutions, etc.

The development of the art market depends on the existence of a dynamic art system. Other capitals, despite having a vibrant artistic production scene and some relevant institutions, still don’t have art systems as developed as those in São Paulo and Rio de Janeiro.

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SCALE

The scale or size of a gallery does not relate solely to the volume of business, but also to the characteristics of its infrastructure, the number of artists it represents, the quantity of exhibits it organizes, the amount of employment it generates, the quantity of fairs it participates in, the number of clients in its portfolio, etc.

Below, we elaborate on some of those aspects that point at the different scales of the contemporary art galleries in activity.

BUDGETARY SCALE Of the researched ensemble of galleries, 37 provided this information, as is shown in the graph below.

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NR. OF GALLERIES ACCORDING TO ANNUAL GROSS REVENUE (2012)* 18 16 14 12 10 8 6 4 2 0

Did not respond

Up to 100 thousand

From 100,001 to 360,000

From 360,001 to 500,000

From From From 500,001 to 1 million to 3.6 million 3.6 million to 5 million 1 million

From 5 million a 10 million

Above 10 million

* All values are in Brazilian Reals

DIVISION OF GALLERIES ACCORDING TO ANNUAL GROSS REVENUE (2012) Even though they do not include all of the researched galleries, the graphs above show that the majority of these galleries have revenues of below R$ 3.6 million per year.

This division corresponds to almost exactly the percentage of the companies included in the Simples Nacional 4 (77%) and out of the Simples Nacional (23%). We may conclude, therefore, even without having all the answers, that this revenue distribution represents the total of the sample.

This cut is fundamental, for it allows the cross-checking with other data, which will be presented below.

22%

78%

UP TO R$ 3.6 MILLION

ABOVE R$ 3.6 MILLION

The Simples Nacional is a differentiated and simplified taxation system, applied to the micro-enterprises and small businesses, according to the Complementary Law nr. 123, of December 14, 2006. It includes companies that have an annual gross income equal or lower than R$ 3,600,000 (three million six thousand Reais).

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DIVISION OF GALLERIES

BY EXHIBITION AREA 4%

LESS THAN 100 SQM

14%

FROM 100 TO 300 SQM FROM 301 TO 500 SQM

41%

FROM 501 TO 1000 SQM

18%

MORE THAN 1000 SQM The majority of the galleries have from 100sqm to 300sqm of exhibition area. Some have highly reduced areas, with little more than 50sqm, and others have more than 1,000sqm.

23%

DISTRIBUTION OF GALLERIES BY NUMBER OF REPRESENTED ARTISTS

11% UP TO 10 ARTISTS

16%

FROM 11 TO 20 ARTISTS

52%

FROM 21 TO 30 ARTISTS FROM 31 TO 40 ARTISTS

21%

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NUMBER OF REPRESENTED ARTISTS The average number of represented artists per gallery is 22. This average decreased compared to the 1st edition of the Study, when the galleries, on average, reported that they represented 24 artists. This is due to the larger sample universe of galleries, including newer galleries with smaller structures.

Some galleries indicate the need of reducing the number of represented artists to better promote them. In fact, for a gallery to work seriously on developing an artist’s career a lot of dedication is necessary, and only a large and complex structure is capable of working in an appropriate manner with a large stable of artists.

There is not an evident correlation between revenue and exhibition area, but there is a strong correlation between the size of the infrastructure and the amount of artists on a gallery’s roster and number of employed staff.

The bigger galleries, which have more than 600sqm of exhibition space, are above average in these two aspects, representing on average approximately 30 artists and employing 13 workers.

The smaller galleries, which have up to 100sqm of exhibition space, represent an average of 18 artists and employ 5 people.

shows per year, and few galleries may organize up to 22 exhibitions per year.

On average, 1.8 group shows are organized per year. For some galleries, group shows occur at times considered of minor relevance from the point of view of the business. For others, they are part of the programming, with projects proposed by guest curators.

The average number of shows per gallery did not present a significant variation compared to the 1st edition of the Study 5.

PUBLIC Visitors Besides their commercial mission, the galleries also work as cultural spaces and welcome visitors who are not buyers. The average weekly number of visitors per gallery is 55 people, a little less than what the 1st edition of the Study showed - 60 people per gallery 6.

There is no relation between the number of visitors and the volume of business of the gallery, nor between the number of visitors and the size of their infrastructure.

There are galleries that have a large volume of business, receiving from 50 to 60 visitors per week, as well as small galleries, with less than 100sqm of exhibition space, that receive more than 100 visits per week.

At the same time, there are galleries with more than 500sqm of exhibition space that receive fewer than 50 visitors per week.

Public diversification is one of the concerns of some of the responding galleries, which promote cultural activities besides exhibitions. Debates with curators, critics

SOLO AND GROUP SHOWS One of the main activities of a gallery is the organization of solo shows. This is the privileged moment when the gallery concentrates efforts on an individual artist’s visibility and commercialization. The surveyed galleries present an average of 7.2 solo

This average is close to the average of the French galleries, which have 8 shows per year, according to the data of the Comité Professionnel des Galeries d’Art, available at http://comitedesgaleriesdart.com/fr/le-comite/informations 6 In this aspect, the Brazilian galleries differ significantly from the French galleries, which receive between 50 and 100 visitors per day, according to the Comitê Professionnel des Galeries d’Art. Two factors can explain the significant difference of public in the French and Brazilian galleries: tourism and the cultural capital of the population, who, due to the educational and mediation policies, goes to museums and exhibits since the beginning of their school years.

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and artists, guided tours with curators and artists, and book launches are among the most common activities.

have more than 5,000, and 3 of them have more than 12,000 contacts in their mailing lists.

STAFF The average number of people working in the galleries is 7.8, with a variation of 2 to 26 people, depending on the size of the gallery.

The researched galleries have a total of 343 people working daily in their headquarters, including the owners.

64% of the work force of the galleries is hired officially, with an average of 5 employees per gallery.

The average hasn’t changed compared to the 1st edition of the Study, but the variation has. The smaller galleries have 2 employees, while in the prior study they had 1 employee only. The bigger ones nowadays have 26 employees on average, while in the prior study they had 22, converging with the information that 70% of the galleries increased their work force in 20127.

The galleries that have a smaller budget, that is, the ones that take in up to R$ 3.6 million per year, have a smaller number of employees, an average of 7 people, very close to the general average.

The galleries that have annual revenues of higher than R$ 3.6 million have a more complex workforce structure, employing an average of 13 people per gallery 8.

Clients The volume of sales is not related to the number of received visitors, but to the portfolio of clients the gallery has.

The average number of clients per gallery is 400. The variation is large, from 20 to 3,000 clients per gallery, so the average is less representative of the universe of the researched galleries.

30 galleries have up to 400 clients (among them, 10 have fewer than 50 clients). 12 galleries are above the average, with a portfolio of more than 400 clients, and only two have more than 1,000 registered clients.

The galleries with a larger portfolio of clients are the ones that do a higher volume of business. The galleries that have revenues of up to R$ 3.6 million have an average of 220 clients, and the galleries that have revenues of more than R$3.6 million have an average of 850 clients.

Contacts The galleries have an average of 5,000 contacts in their data base.

The variation is of 800 to 12,000: 29 galleries have up to 5,000 contacts, 13 galleries

It may seem that there is a divergence of information, on one hand the average of people working in the galleries was not altered, and on the other the galleries affirming having hired more employees in 2012. One must consider, however, that the researched universe is not exactly the same, the number of mapped galleries in this 2nd edition has increased, and this also impacts the results.

8 Differently from galleries in Holland (according to Velthuis, 2003) or in France, where studies point to the existence of galleries with no employees or whose functioning is loss-making and that are not capable of offering the owner means of subsistence, all the galleries surveyed by our study employ people formally and have structures where more than one person works. Comparatively, the Brazilian galleries employ more people per structure that the ones in France, where the majority hires up to 2 people. (Data of the ComitÊ Professionnel des Galeries d’Art, available at http://comitedesgaleriesdart.com/fr/le-comite/informations) However, one must also consider that the art market in France is much bigger, not only in volume, but also in number of galleries. As a consequence, the art market in France has a higher weight in the economy and generation of jobs in the country than the Brazilian market.

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DISTRIBUTION OF GALLERIES BY AVERAGE SALARY (MONTHLY WAGE) 7%

FROM 1 TO 2 MINIMUM WAGES

23%

FROM 2 TO 5 MINIMUM WAGES 70%

FROM 5 TO 10 MINIMUM WAGES

AVERAGE SALARY The majority of galleries pay between 2x and 5x the minimum wage to their employees 9.

The average monthly salary does not vary significantly according to gallery revenue.

What varies is the average salaries in the higher figures. The general average of higher salaries is R$ 5,500 per month, but in the galleries that have revenue of more than R$ 3.6 million per year this average is R$ 7,900 per month. And in galleries with revenue lower than R$ 3.6 million per year the average of higher salaries is R$ 4,800 per month.

It would be interesting to be able to compare the average salary of the contemporary art market with that of other cultural activities. The existing data on the cultural sector indicates a salary average of 5x the minimum wage, considering all the cultural segments, in 2005. In the same period, commerce in general had a salary average of 2x the minimum wage, and in cultural commercial activities the average was 2.8x the minimum wage. Unfortunately, the statistics on the cultural sector use 2005 data, which weakens the potential of a comparative analysis10 10.

NUMBER OF FAIRS ATTENDED PER YEAR In 2012, the mapped galleries accounted for a total of 167 participations in fairs, an average of 3.8 fairs per gallery. This average includes galleries that did not participate in any fairs and galleries that participated in up to 13 fairs in the period.

The average number of participations remained practically unaltered compared to the 1st edition of the Study, which indicated participation in 3.7 fairs per year per gallery.

The bigger galleries, with a higher volume of sales, tend to participate in a higher number of fairs, and the newer galleries tend to limit themselves to participation in fairs only in Brazil, even though all expressed a desire to participate in international fairs.

Some large galleries, however, have focused on participating in higher prestige fairs and not on the number of fairs. Regarding the newer galleries, it is interesting to observe that some started participating in the international circuit of fairs very soon after they were created Six galleries founded since 2010 have already participated in 35 international fairs 11.

In Brazil the minimum wage is R$ 678 per month.

Culture in numbers. IBGE/Ministry of Culture, 2010.

11 Data related to December 2012.

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MODUS OPERANDI

THE CULTURAL DIMENSION The Study encompasses the primary market of contemporary art, that is, galleries that represent mainly contemporary artists.

The representation work involves much more than the commercialization of the artwork. The commercialization, usually, is the consequence of a series of other activities that contribute to the building and consolidation of the artist’s career.

• realization of national and international partnerships to place the work of represented artists; • pre-financing and co-production of works; • publications; • pre-acquisition of works These activities demand time, resources, qualified teams and a large network of contacts. They require medium and long-term strategies and because of this they are seen as an investment in the artist’s career.

Considering these activities, it is evident that the primary market galleries perform a double role: both economic and cultural, for not only do they commercialize the artwork, but also document, promote, show, circulate, preserve, and foster contemporary art production.

Below, galleries list their ongoing activities, in order of importance: • organization of individual exhibits; • filing and documenting artists’ works and projects; • critical follow up of the production; • photographic register of the exhibits; 23

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ADMINISTRATIVE-FINANCIAL CHARACTERISTICS The wide range of actions mentioned above, are not always described as commercial activity. For this reason, the corporate objective of the companies often includes, besides selling, a series of combined services.

Half of the responding galleries have commerce as their main activity, and the other half, commerce and services. The option for combining activities describes the nature of the business as well as accounting planning, because such choice influences incurred taxes. 16% of the researched galleries work under two companies and tax ID numbers, according to the financial-administrative planning of the company and the diversity of the developed activities.

The galleries may also be divided into two groups according to the applicable tax regimen: 77% of the galleries are small companies, registered under the “Simples Nacional�(the lowest tax bracket available for companies in Brazil); 23% of the galleries are companies that, by the nature of their activities and/or the volume of the business, are above of the Simples Nacional bracket.

The galleries in the smaller group above have much higher revenues than companies qualifying for Simples Nacional, and, comparatively, represent a higher number of artists and are responsible for large part of the exports registered by the sector.

Approximately half of the researched galleries keep verbal contracts with the artist related to their representation, while the other half mixes formal and verbal contracts. All of them show, however, a desire for formalization and professionalization of their procedures. Another tendency observed is the incentive to transform the artist into an entrepreneur. 30% of the represented artists have a company and are paid as such.

Many galleries stated that they stimulate the artists to open their own companies as individual entrepreneurs. This simplifies accounting and decreases taxes. The new reality does not concern only artists with a consolidated career, whose studios may employ a large number of assistants, but also new artists at the beginning of their careers. This movement shows the form in which the market has been stimulating the professionalization of the artists, but also points to the lack, in Brazil, of a tax and Social Security System for art professionals.

Mobility and renewal of stable of artists The galleries reported that each year there may be changes in the group of represented artists, with the addition of new names and removal of others. The majority reported adding an average of 3 new names to their roster of artists and stopped representing an average of 1.8 artists in 2012, which indicates a good stability among the gallery in their retention of artists.

Recruiting new artists to the market This information shows the capacity of the gallery to launch new artists commercially, which involves a certain risk, but is fundamental for the renewal and expansion of the sector. This contributes to the professionalization of the artists, which benefits the art system as a whole.

THE PRIMARY MARKET AND THE ARTISTS The researched galleries represent an ensemble of approximately 1,000 artists. The terms of representation are agreed upon by the gallery and the artist, and the usual procedure is that the gallery keeps the works in consignment and pays the artist, on average, 50% of the sale value of the work.

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OBSTACLES TO THE DEVELOPMENT OF THE SECTOR High taxes are indicated by the majority of companies as the main development bottleneck for the sector, followed by bureaucracy, which is mainly related to the international circulation of the works.

The problem, according to sector agents, is that the art market is taxed as other sectors of the economy, disregarding its characteristics and specific necessities.

The subject is part of ABACT’s agenda, which is currently being discussed with the government authorities aimed at adapting the laws in effect. This is only happening because the market, due to the significant growth observed, has gained visibility and has started to be seen as a significant link in the chain of the country’s creative economy.

Besides the tax regimen, there are other obstacles in the development and consolidation of the sector. Administrative-financial management; distinct strategic planning for the internal and external markets; building, development and administration of a solid client base; correct and formal management of partnerships; development of communication and marketing tools; and utilization of new technologies are some of the areas to be improved.

10.8% of the artists represented by the galleries entered the market for the first time in 2012. This percentage decreased significantly compared to the 1st edition of the Study, when the galleries stated that 23% of the represented artists were entering the market for the first time. However, it is neither possible nor sustainable to launch new artists constantly. These galleries are working on building recently recruited artist’s careers, to maximize their value and commercialization.

PRICING The majority of galleries appoint two basic criteria to establish the sale price of works by new artists recently introduced into the market: the artist’s portfolio and the comparative analysis of the market. For artists with a sales history, the prices of their works in the secondary market are also taken into consideration.

PARTNERSHIPS 54% of the galleries have partnerships with other galleries in Brazil and abroad. The main objective is to foster the visibility and promotion of the artists in other places.

Galleries also work in cooperation with architects, interior designers, and art consultants. Usually these professionals are paid, on average, a 10%-commission over the sale value for intermediation.

OPERATIONAL EXPENSES The expenses that weigh on gallery budgets are the cost of participation in fairs, payroll, infrastructure costs (rental, remodeling, electricity, fees, etc.), production of shows, production of works, transportation and logistics, graphic material/publications, and travel costs.

These expenses also show the impact the sector has on other parts of the art production chain, as well as of other economy sectors, a matter to be addressed by a separate study.

SECONDARY MARKET 25% of the galleries also work in the secondary market, which represents, for this group, approximately 25% of the volume of their business.

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GROWTH AND DYNAMICS OF THE SECTOR INDICATORS OF GROWTH The growth trend of the contemporary art market in Brazil, already observed in the 1st edition of the Study, was maintained. 36 of the responding galleries, that is 81%, point to a growth in their volume of business in 2012. The others maintained the same volume, and only one informed of having had negative growth in the period. 70% of the galleries also stated that they increased their staff (compared to 27% that did not change, and only one that reduced its work team).

The galleries attribute this growth to the current state of the Brazilian art market in recent years, to an increase in the base of collectors, to the visibility that Brazil has been gaining on the international scene, not to mention the professionalization of the sector and the improvement of business management.

The expansion of the market is strongly supported by the participation of private Brazilian collectors, responsible, in 2012, for 71% of the business volume of the galleries, as we will see next.

NATIONAL MARKET/INTERNATIONAL MARKET • Sales in the international market represent 15% of the volume of business • Sales in the national market represent 85% of the volume of business The percentage of sales to foreign countries decreased compared to the 1st edition of the Study, when it represented approximately 20% of the volume of business of the galleries, on average. This variation is related 27

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to the incorporation of recently-opened galleries as part of the sample universe of the Study. These galleries are still new to the international market. Also the growth of the domestic market is another factor.

While the percentage of international sales decreased as a function of total sales, the total revenue from these international sales increased.

the galleries with a gross annual revenue of more than R$ 5 million sold an average of 380 works in the same period.

PRICE The price of the negotiated art varies from R$ 2,000 for the cheapest works to up to R$ 700,000 for the most expensive works.

And the variation is big, with pieces for sale from about R$ 250 to others that are valued at more than R$ 8 million.

The average price of the commercialized works in the primary market is R$ 22,000.

This amount represents a significant variation if we consider the groups located in the extremes of the sales revenue range. The average price of the galleries that sold up to R$ 1 million is R$ 10,500, and the galleries that sold more than R$ 5 million have an average price per work of R$ 35,800.

60% of the galleries reported having readjusted the prices upward in 2012 by approximately 15%.

SALES The researched galleries of the primary market sold approximately 6,700 objects in 2012.

Naturally, the volume of sold works varied according to the profile and size of the galleries. Some of them made a little more than 30 sales, while others made about 600 sales last year.

This indicator oscillates strongly if we consider the groups located in the extremes of the revenue range. The galleries that have a gross annual revenue of up to R$ 1 million sold in average 77 works in 2012, while

BUSINESS PLATFORMS 9%

3%

THE GALLERY SPACE ITSELF

29%

NATIONAL FAIRS

59%

INTERNATIONAL FAIRS OTHER SITUATIONS

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BUSINESS PLATFORMS The most important place to do business is the headquarters of the gallery, where nearly 60% of the transactions take place.

The fairs are also very important, responding for 38% of the sales. A small volume of business happens in other situations, such as visits to clients, the gallery website, and partnerships with other commercial places.

Even though the subject of on-line sales is new, with agents in the international market declaring growth of business volume through these channels, as well as the recent opening of sales of art work by Amazon, for example, it is not yet a common practice in Brazilian galleries.

Only 6 galleries reported sales through virtual channels, and the impact of those sales on the volume of the business is very small: less than 2%.

BRAZILIAN FAIRS 82% of the galleries considered that fairs in Brazil are the most important from the point of view of the sales.

Ranking of the fairs that most impacted sales for galleries SP-Arte is considered, by 59% of the galleries, to be the most important from the point of view of volume of business generated.

13.5% of the researched galleries informed to have had a higher volume of business at ArtRio and 11.5% sold more at Art Basel Miami Beach in 2012.

PROFILE OF COLLECTORS Sales are driven mainly by private Brazilian collectors, responsible for more than 70% of gallery revenues. They are not only investing more, but also becoming more numerous.

PROFILE OF COLLECTORS BY PARTICIPATION IN THE GALLERIES’ REVENUE 2.5% 4.25%

BRAZILIAN PRIVATE COLLECTORS

1.25% 3%

FOREIGN PRIVATE COLLECTORS

6%

BRAZILIAN CORPORATE COLLECTIONS

11.5%

BRAZILIAN INSTITUTIONS INTERNATIONAL INSTITUTIONS

71.5%

FOREIGN INSTITUTIONS OTHERS 29

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Brazilian institutions represent less than 5% of sales.

These numbers point to the sad contrast that exists between the vigor of the private collections and the fragility of the institutional collections in Brazil.

The national institutional circuit, which should be one of the pillars of the contemporary art system and the stage of fostering and visibility for emerging production, does not have financial and management resources to perform this role, as another study in which we participated has shown 12.

The lack of resources must not be seen as the only reason, for there are in the primary market works that cost from R$ 250 to R$ 8 million. It is evident that, besides resources, institutional collections, with rare exceptions, also lack clear and coherent curatorial lines in sync with the mission of the institutions.

This explains why Brazilian contemporary art is better represented in private collections in Brazil, and private and institutional collections abroad than in Brazilian public institutions.

therefore the numbers were not as accurate as the ones we present now. Another factor to be considered is the profile of responding galleries. In the 1st Study, there were, proportionally, more medium and large size galleries, professionalized and internationalized, thus galleries that sell to institutions in Brazil and abroad.

The inclusion, in this edition of the Study, of a larger number of newer galleries, makes the researched universe more heterogeneous, changing the scenario. Smaller and newer galleries, which are a part of this research group, have private Brazilian collectors as their immediate and main clients. They are building their reputation in the art system and are in their initial process of internationalization, and because of this have limited access to Brazilian institutions, and to the private and institutional collectors abroad.

It is important to note that the distribution trend continues about the same for Brazilian and foreign collectors as the main buyers, followed by institutions and corporate collections in Brazil, and, lastly, international institutions and corporate collections.

CLARIFICATION There has been a variation regarding the distribution of buyers’ profiles. According to the data shown in the 1st edition of the Study, private Brazilian collectors made up 66% of the buyers, followed by private foreign collectors with 15%, Brazilian institutions 8%, foreign institutions 5%, and other agents, such as investment funds and corporate collections 3%.

However, for the 1st Study, not every gallery responded, not making it possible to add the answers together to total 100%,

The research “‘Economias’ das exposições de arte contemporânea no Brasil” the contemporary art exhibits was conducted in 2010, in the scope of an agreement between the Ministry of Culture, the Foundation Iberê Camargo and Fórum Permanente. Unfortunately, this research hasn’t had yet the results initially forecasted due the change in the administration of the Ministry in January 011. About this, see: FIALHO, Ana Letícia and GOLDSTEIN, Ilana, “‘Economias’ das exposições de arte contemporânea no Brasil. Notas de uma pesquisa”, in CALABRE, Lia, Política Culturais: Pesquisa e Formação, São Paulo: Observatório de Políticas Culturais Itaú Cultural; Rio de Janeiro: Fundação Casa de Rui Barbosa, 2012.

12

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INTERNATIONAL INSERTION

THE REPRESENTATION OF FOREIGN ARTISTS The taxation and bureaucratic barriers for importation of works of art do not prevent Brazilian galleries from working with foreign artists.

75% of the galleries work with artists from other countries. The average of foreign artists represented by the galleries has grown from 19% to 22.5%. There are galleries that do not represent any international artists and galleries that have more than 50% represented artists who are of foreign origin.

The international dimension of the Brazilian market should not be assessed based only on the volume of sales and exports to the international market. There are other fundamental factors that deal with the insertion and international visibility achieved by the Brazilian galleries. Among them, the internationalization of the group of represented artists; the insertion of the artists in international collections; the stimulating of the artists to participate in international events; the portfolio of clients and partners abroad; the participation in fairs, among others. Next, we will present some of them in more details, which confirm the international insertion of Brazilian galleries in the primary market.

INTERNATIONALIZATION STRATEGIES The participation in fairs and the establishing of relationships with international institutions and partnerships with foreign galleries 31

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are indicated as the main internationalization strategies of the galleries.

30% of the galleries have partnerships with other galleries abroad.

50% participated in international fairs in 2012.

The galleries also acknowledge the importance of the biennials and the institutional exhibitions for the development of their business. The great majority of the galleries, 86%, support the participation of their artists in international events. That support, usually financial and logistical, includes the costs of the artist’s trip, transportation and support for the production of works

Even though the biggest volume of business is concentrated on the national market, sales to other countries are fundamental for the business of the galleries, due to the nature of contemporary art, whose process of acknowledgement and valuing goes eventually through the international circuit.

Private collectors have a higher weight in relation to the volume of business, but international institutions, which represent only 2.5% of the volume of business, are a priority for the galleries that work internationally due to the high visibility and the power of legitimization they have.

The artists represented by the responding Brazilian galleries are inserted in more than 130 institutions all over the world.

The following map clearly shows the extent of this insertion:

INTERNATIONAL INSERTION OF THE REPRESENTED ARTISTS

GROWING INSTITUTIONAL PRESENCE MORE THAN 130 INSTITUTIONS AROUND THE WORLD

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SALES TO FOREIGN COUNTRIES The international market is responsible for approximately 15% of the volume of business for the galleries. At least 60% of the researched galleries sold works to other countries in 2012. The majority reported sales of up to US$ 100,000. The biggest volume of sales was concentrated in a small number of galleries. However, the comparative analysis of the sales in 2011 and 2012 shows that the exporting base increased, as well as the total exported volume.

Even though not all the galleries answered this question, the total of the results of international sales shown in the graph above agrees with the official data for Brazilian exports, and point to significant growth, as we will see next.

DESTINATION OF SALES The main destinations of the international sales as informed by the galleries coincide, for the most part, with the main destinations of the exportations according to the official data supplied by Apex-Brazil.

The United States, Great Britain, Switzerland and France are shown as the main destinations. However, besides the leaders in the ranking of sales, new destinations were indicated and must be monitored, such as Colombia and Peru, in Latin America, and Hong Kong, in Asia.

Besides these locations, in 2012 other destinations of the sales were: Germany, Saudi Arabia, Argentina, Australia, Austria, Belgium, Canada, Denmark, Holland, Italy, Mexico, Portugal, Singapore, Turkey, Ukraine and Venezuela.

NR. OF GALLERIES BY INTERNATIONAL SALES

REVENUE IN 2011 AND 2012 Did not respond

Did not make sales in 2012

From 5,000,001 to 10,000,000

From 500,001 to 5,000,000

From 100,001 to 500,000

From 50,001 to 50,000

From 10,001 to 50,000

0

2

4

6

* All values are in dolars

8

10

12 2011

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14

16 2012

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EVOLUTION OF EXPORTS 13 The increase in export volume of the galleries in the Latitude Study does not exactly mirrors the development of the art market sector as a whole.

The galleries of the Latitude Project represent only 10.5% of the universe of exporting companies in the Brazilian art sector as a whole, when considering the total number of exporting companies. In 2012, the galleries of the Latitude Project not only broke a record in relation to the exported volume, but

also in relation to their participation in total exportations, for they were responsible for 53% of the exports of the sector.

The galleries in S達o Paulo are the ones that export the most. They were responsible for 89% of the exports in 2011 and 95% in 2012.

The galleries have observed a growth in the volume of exports to the main destinations mentioned above, with the exception of France, and have diversified the markets where they work.

EVOLUTION OF EXPORTS OF THE ART MARKET AND OF THE LATITUDE PROJECT IN 2011 AND 2012 YEAR SECTOR IN GENERAL LATITUDE PROJECT 2011

$60,144,054

$18,609,624

2012

$51,170,357

$27,130,165

The date presented in this chapter were supplied by the Planning and Budget Unit of Apex-Brasil and are related to all the 47 members of the Latitude Project. All the values are in dollars FOB. 15

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DESTINATION OF EXPORTS IN 2011 AND 2012 RANKING PER COUNTRY 2011

MARKET SHARE

1 UNITED STATES

37.5 %

19

2 FRANCE

29.37 %

6

3 SWITZERLAND

17.05 %

5

4 UNITED KINGDOM

10.22 %

8

5 ARAB EMIRATES

1.72 %

1

OTHER COUNTRIES RANKING PER COUNTRY 2012

NR OF GALLERIES

4%

GROWTH

MARKET SHARE

NR OF GALLERIES

1 UNITED STATES

44.35 %

36.91 %

13

2 UNITED KINGDOM

238.07 %

23.56 %

8

3 SWITZERLAND

78.93 %

20.80 %

4

4 FRANCE

-74.34 %

5.14 %

5

100 %

3.65 %

3

5 HONG KONG OTHER COUNTRIES

10 %

The 5 main destinations of exports in 2012 were the United States, Switzerland, Great Britain, France and Hong Kong.

The growth of exports to Great Britain is striking, and is certainly related to a higher presence of Brazilian galleries at Frieze Art Fair 16, as well as Hong Kong’s surge to 5th place in the ranking for 2012.

We observed also that other destinations became more important in 2012, which indicates a diversification of the markets where Brazilian galleries work, agreeing with the qualitative information on the destination of sales, where the galleries reported 25 different international destinations for sales made in 2012.

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CONCLUSIONS

The primary market for contemporary art in Brazil remains dynamic and expanding, confirming the trend already observed in the 1st edition of the Latitude Sectorial Study. The average growth for the sector was around 22.5% in 2012. Good performance in the contemporary art trade has been observed in Brazil as well as abroad.

The data related to revenue, to the volume of sales, and to exports indicate a linear and consistent growth over the last 3 years, with the consequent maturing of the sector and the acceptance of the contemporary works it represents. This makes us believe that this trend is not a bubble or fashionrelated effect, but a process that has solid foundations and should continue to build in the coming years.

The primary market for contemporary art in Brazil is not essentially domestic (any more), quite the opposite, it is in an accelerated process of internationalization. In the 90’s, only a small group of agents worked internationally; today, the protagonists in the Brazilian market – artists, gallery owners and collectors – are players in the international map of contemporary art, where they have been gaining increasing importance and visibility.

The fast development and the degree of professionalism and internationalization of some of the newer galleries demand our attention. Concerned with the implementation of efficient management and planning, with the formalization of their relationships with artists and partners and connected to what is happening in other markets, some gal37

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leries founded little more than 2 years ago are already inserted in the international contemporary scene. This is observed not only by their presence in important fairs, such as ARCOmadrid, Art Basel Miami Beach, and Frieze, but also by their ability to relate to artists, curators, critics, and collectors all over the world, creating acquisition opportunities and exhibiting their artists in institutions of prestige.

The dynamics and the expansion of the art market in Brazil have attracted agents from the international market. ArtRio and SP-Arte registered record attendance by international galleries in their latest editions.

White Cube opened a branch in SĂŁo Paulo in December 2012. There is an increasing presence of international curators, journalists and collectors in the country. This September, the publications Art Review and The Art Newspaper will have a special issue on Brazil. The main museums of the world have been more frequently organizing exhibitions of Brazilian artists and looking for partners in Brazil to make their projects viable. That interest is not solely motivated by the “love of artâ€?, but also by the evident abundance of resources, due to the wealth of artistic production and the concentration of high net worth individuals (HNWI) in the country. In any case, the interest in the country may be extremely positive for the art system as a whole, as long as its agents position themselves on equal terms with their international peers.

The scenario described here brings, therefore, challenges and opportunities. For this market trend of growth and internationalization to be sustainable and have positive effects for the medium and long term, it is important that the processes of professionalization and sectorial organization are

consolidated; to overcome the existing regional differences, and so that the market can strengthen itself to better face growing international competition and an eventual change in the national and international macro-economic context.

The burdens of high tax and bureaucracy are still obstacles to the development of the sector, but the visibility and dynamics recently reached by the market allow these issues to be discussed in the governmental scope, which may result in a better adaptation of the laws in effect.

Finally, it is important to emphasize that the market growth and international acknowledgement of Brazilian contemporary art production highlight the fragility of other pillars of the art system. Brazilian public institutions, for instance, urgently need more assertive policis directed to the constitution and expansion of their contemporary art collections. Maybe it is the right time to try to overcome the existing gap within the institutional circuit, the production axis, and the art market, and that, through public-private partnerships, the appropriate conditions for the sustainable development of the art system as a whole could be established.

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AFTERWORD

The 2nd edition of the Latitude Sectorial Study has included a larger and more heterogeneous universe of galleries; it has increased, deepened and updated the data from its 1st edition and has improved the tools for data collection. The majority of the galleries responded to the questions in a more complete and precise manner. The quality, details and depth of the information insured the relevance and uniqueness of this report, a result of the combined effort of ABACT, the Latitude Project, and the art galleries to pro-

duce objective and trustworthy data on the sector in which they operate.

Certainly there are still gaps to be filled in and other aspects to be studied. We expect that future editions may not only update the data presented here, but also explore new themes, include other market segments and promote comparative analyses with markets in other countries, in order to expand and enrich the information on the art market in Brazil and its place in the international landscape.

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ABOUT THE AUTHOR

Ana Letícia Fialho is a lawyer, cultural manager and art market researcher.

She is Research Coordinator and Commercial Intelligence Consultant for Latitude – Platform for Brazilian Galleries Abroad, a partnership between the Brazilian Association of Contemporary Art (ABACT) and the Brazilian Trade and Investment Promotion Agency (Apex-Brasil).

With over ten year of experience in the cultural sector and the art market, she has collaborated with institutions such as Centro Cultural Banco do Nordeste, Cinema do Brasil, Fórum Permanente, Fundação Bienal do Mercosul, Ministério da Cultura, SENAC, SEBRAE, Museo Nacional Reina Sofia, among others. She holds a Law degree from Universidade Federal do Rio Grande do Sul, Brazil, 1997; a Masters degree in Gestion et Développement de Projets Culturels (Cultural Management and Project Development) from

Université de Lyon II, France, 1999; a Masters degree and PhD in Sciences de l’Art et du Langage (Sciences of Art and Language) from École des Hautes Etudes en Sciences Sociales (EHESS), France, 2001/2006.

She is also a guest professor in the specialization of Economia da Cultura (Economics of Culture) at Faculdade de Economia, Universidade Federal do Rio Grande do Sul and in the course Curadoria: História das Exposições (Curatorial studies: History of Exhibitions) at Escola São Paulo. She has recently joined the activities of Núcleo de Estudos de Arte e Poder no Brasil (Research group on Art and Power in Brazil), at Instituto de Estudos Brasileiros, Universidade de São Paulo (IEB/USP).

Her recent publication projects include Critical Reports - 27th São Paulo Biennial International Seminars, bilingual edition published by Hedra/Fórum Permanente, 2011, co-organized with Graziela Kunsch.

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LATITUDE SECTORIAL STUDY 2ND EDITION | JULY, 2013 HEAD RESEARCHER Dr. Ana Letícia Fialho EDITORIAL COORDINATOR Mônica Novaes Esmanhotto INFORMATION MANAGER Leonardo Assis STATISTICAL DATA ANALYSIS Maurício Tombini LATITUDE VISUAL IDENTITY Estúdio Campo GRAPHIC DESIGN Lucia Faria e Flávia Couto © 2ND EDITION Latitude – Platform For Brazilian Art Galleries Abroad © WORDING Ana Letícia Fialho © GRAPHS AND TABLES Latitude - Platform for Brazilian Art Galleries Abroad ACKNOWLEDGEMENTS Alessandra d’Aloia, Camila Fialho, Christiano Braga, Daniel Rubim

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