At the end of 2020. ArtPro and Beijing Art Gallery Association launched a questionnaire survey on the Beijing Art Gallery Association members to discuss the current situation and development of art galleries. We review and analyze this particular period to find out the trend and prospect of art galleries. Members of the Beijing Gallery Association are the core and the essential components of the Beijing gallery industry. This survey represents the overall situation of Beijing and China's gallery industry.

This report will make a comprehensive analysis and explanation from the following seven aspects: annual business situation of the galleries in 2020, business model, employment of the gallery staff, the quantity and quality of exhibitions, participation in the Art Fair, new collectors obtaining approaches, and gallery promotion methods.

Research Scope: 55 galleries, members of Beijing Gallery Association

The first part: business overall of Beijing Gallery in 2020

The main business model of the gallery is to manage the original works by signing contracts, packaging and introducing artists. In this process, the income of the gallery is mainly the business income of the original works.

In 2020. under the influence of the global pandemic, Beijing galleries are operating well as a whole, among which 60% are still profitable and 40% are at a loss.

 Annual business performance of the gallery

According to the data available for the survey, the total annual turnover of the primary market of the members of Beijing Gallery Association in 2020 is about US $100 million. Among the gallery organizations participating in the survey, the annual turnover ranges from RMB 500.000 to more than RMB 50 million, which is divided into seven different ranges, and the overall number distribution is in olive shape.

A. Overall situation of the annual turnover of galleries

In 2020. the number of galleries with a turnover of 1 million yuan or less will account for 17%.

The number of galleries in the range of 1-5 million is the largest, accounting for 35%.

Galleries with an annual turnover of 5-10 million yuan account for 25%, which is the second-largest proportion of galleries.

The number of galleries with an annual turnover of 10 million to more than 50 million yuan accounts for 22% of the total. These galleries are the leading galleries in the whole gallery industry.

Generally speaking, 60% of the galleries have a turnover of 1-10 million, and they are also the backbone of Beijing's gallery industry.

From the perspective of rent cost in Beijing, galleries with a turnover of less than 1 million will have certain operating pressure in sustainable business.

B The break-even point of Beijing Gallery's business performance is 5 million yuan’s annual turnover.

In the survey of Beijing Gallery, the higher the amount of turnover, the stronger the profitability,

In 2020. galleries with a turnover of more than 10 million yuan and galleries with a turnover of more than 5-10 million yuan will achieve 100% profit; Among the galleries with a turnover of less than 1 million yuan, 90% of them are unable to make profits.

In 2020. 40% of the galleries with turnover of 1-5 million yuan will be profitable, and 60% will have losses. Therefore, it can be inferred that the turnover of 5 million yuan of Beijing galleries is a critical profit and loss index in the business performance.

C Development

According to the Report of the State Council on the Development of Cultural Industries in 2020. the strength of China's cultural enterprises is weak. However, the number of cultural enterprises in China is proliferating. Most of them are small and micro-enterprises with less than 50 employees or a turnover of less than 5 million yuan. Some are even individual studios and individual businesses. The "small" and "scattered" situation has not been completely changed. The number of galleries in the area with an annual turnover of 1-5 million yuan is the largest, accounting for 35.56%. The number of galleries with an annual turnover of more than 5 million yuan accounts for 35.44%. The scale of Beijing galleries is running under the qualification of small-scale enterprises. The scale and strength of Beijing gallery industry are growing.