Sotheby's Pulls Plug on Buy Now eCommerce Business in Mainland China

In a move to adapt to the slowing demand in the fine art and luxury markets, Sotheby's has reportedly shut down its Buy Now eCommerce business in mainland China. However, the company will continue to operate this platform in Hong Kong, where it was first launched in 2022.

The shutdown of the Buy Now program in China is attributed to a decline in demand in recent months, according to reports from reputable sources. The Financial Times revealed on Sunday that Sotheby's launched an online platform offering fine art and luxury goods in Hong Kong in 2022 and later expanded it to mainland China.

When questioned by the FT, Sotheby's officials stated that China remains a key market for both art and luxury, with its Beijing and Shanghai offices open and active. The company has shifted its focus on client relations rather than sales.

This announcement comes as part of a broader retreat for major auction houses like Sotheby's. Global auction sales have dropped 23% in 2024, while the company began discussing layoffs with approximately 50 staff members in its London office during the first half of this year.

The Buy Now platform was introduced by Sotheby's six months after the start of the pandemic, coinciding with a surge in online auction values. This feature allows customers to purchase collectibles from the marketplace without having to participate in an auction.

At its inception, about three-quarters of new buyers who used the platform were unfamiliar with Sotheby's. However, luxury brands in China have been forced to implement drastic price cuts due to China's economic slowdown affecting consumer spending habits.

In June, it was reported that China's affluent middle class has grown more cautious in their spending due to the country's economic conditions.