For years, artworks have been synonymous with the very rich and famous. But not any longer! In current times, many Indian households are adorning their walls with imported handmade work-of-arts. Result – a lucrative business opportunity waiting to be tapped. The Dollar Business takes a deep look into the state of the ‘Art’ and unravels why importing hand-made paintings could yield rich dividends.

Jasleen Kaur | March 2016 Issue | The Dollar Business

From being referred to as one of the ‘romantic’ arts, to claims of them having spiritual value, there is no denying that paintings have always found an important place in the world due to their immense cultural and historical significance. But if you thought that they are only a rich man’s game, think again. The works of art, particularly hand-made paintings, which earlier used to be reserved for the rich and elite, have found a new abode in India’s burgeoning upper-middle class who are now viewed as ‘aspiring luxury home buyers’.

LIFE OF ART

Around the world, art has stood the test of time. A rather creative way of looking into the past, art – whether it be paintings, music, poetry or sculptures – has not only served to bring beauty and splendour into our lives and homes, but has also been a major investment category that has offered high dividend yields to its holders, time and again, across the globe.

When it comes to artwork, every artist has his own style of painting – be it impressionist, expressionist, abstract, the Tanjore and Madhubani styles of painting, or even the traditional Maori style – and every piece of art has a story behind it, behind the style and theme.

In fact, most artists usually follow certain themes – as seen in Monet’s fascination with nature, Frida Kahlo’s depiction of her life and her struggles with bold hues of feminism and tradition, and the recurring theme of death in the work of Norwegian artist Edvard Munch. And who can forget India’s most famous artist, M. F. Husain, whose painting Battle of Ganga and Jamuna: Mahabharata 12 sold for $1.6 million at a Christie’s auction in 2008? His paintings, too, explored a variety of themes including (but not limited to) Sanskrit epics Ramayana and Mahabharata, and the British Raj.

Talking about themes, Sangeeta Kumar Murthy, a well-known artist and recipient of Kala Ratna Samman, says, “I always work on some themes. Right now, I’m working on the environment and turtles as they fascinate me the most. My fascination grew because of the positive energy that turtles bring, such as, longevity, strength, prosperity, and success”. While Indian paintings have traditionally shown the culture of India, customer preferences have drastically changed in recent times, as artists expand their themes and techniques.

Maybe this is the strongest reason that is now attracting people and painting lovers towards art exhibitions in India and abroad. They are now increasingly being sold as investments, in India as well.

The beauty and versatility of paintings have always mesmerised both artists and collectors of art through the centuries. Handmade paintings and oil portraits are a must have for those trying to make their special ones feel extra special, or to bring colour to the confines of their homes or offices. And as such, the Indian painting imports scene, though still in its infancy, is expanding its horizon real fast.

Options Galore

High disposable incomes combined with the surging interest in art has spurred the emergence of lucrative affordable art business – no longer dominated by the American and European artists and there is a huge market for it in India.
If you’re looking to buy art to brighten your house, or as a gift for someone, then there are a number of Indian dealers who can deliver imported paintings of different styles and themes. Mumbai-based importer, Sanjay Wadhwa, tells The Dollar Business that the demand for hand-made paintings is picking up fast in India and one can easily expect a 10-15% margin in its imports.

So, what does it take to start one’s own business in the world of art? “You have to face challenges and difficulties like you otherwise would in all other fields. But, to be successful in the art business, you need an art-based background, otherwise, you may have to struggle a lot, or even perish,” cautions Sangeeta.

Affordable Luxury 

Indian households, which earlier used to have paintings of religious significance to adorn their walls, have now grown a taste for exotic themes including replicas of well known artists like Monet and Cezanne, and even Chinese calligraphy. If a survey from retail consultancy firm Technopak is any indication, the Indian home décor market, which stood at $13 billion in CY2010, will touch $30 billion from the current $20 billion by CY2020. Not to say, imports of paintings and drawings into India over the last decade have grown from just $1.74 million in CY2005 to $33.10 million in CY2014. This growth is a clear sign of the potential that art forms like paintings, drawings and pastels (HS Code: 970110) have in the Indian market. If machine-made paintings are art forms are added, the Indian mass market starts appearing like the perfect canvas to script one’s success in this business.

Over the last few years, India’s imports of the said category has fluctuated. In the face of global recession of 2008, Indian painting imports dropped to $19.11 million (of HS Code: 970110; in CY2008) from $41.21 a year before. And though imports only reached three-fourths of that peak (reached in 2007) in CY2014, industry experts are of the opinion that fluctuations in this industry are the norm, but negative movements are temporary. The market for paintings will only forever rise in future.

“Art lovers can be found across Indian metro cities such Mumbai, Hyderabad, Kolkata, Delhi, and Chennai. Hotels and offices around the country also buy art. The demand here is immense,” says Wadhwa.

Although the West retains an edge when it comes to works of art and craft, abstract paintings and other artworks have become popular in India in the past few years. Courtesy: contemporary art and affordable pricing. To give you an idea, an attractive ‘Made in China’ abstract hand-made painting in square shape, at the wholesale level, would cost Rs.250-1,000 while that made in India would start only from Rs.2,000.

Besides cost being a factor, lucrative margins involved in importing these art products from China also persuade importers to take up its trade.

So while high value paintings continue to come from the West, it’s China that is fast making inroads into Indian art market with its affordable hand-made paintings. And the margins are high!

THEN AND NOW

Art has a bright future in India. Earlier, it was only the elite who bought original artworks from an artist, but over the course of the last few years, even those from middle and upper middle class are showing a keen interest in art, mostly to beautify their homes. High-end art though, still constitutes a large part of the business by value.

In fact, today, there are a lot of buyers in the Indian market, looking for just the right piece to snatch up – be it western or Indian art – and, to them, price is not an issue. Moreover, with the rise in the number of museums, galleries, and with India getting its first Biennale – the Kochi-Muziris Biennale – in 2012, the Indian audience of the art world has become more widespread, signaling towards a growing interest, and therefore, demand. According to a report by Art Tactic, when compared to 2013, India’s auction sales rose 1.97% year-on-year in 2015.

Opportune Space

Given the rising popularity of art in Indian homes, paintings is a great business opportunity. While volumes still remain low, there are decent margins to be made in imports of hand-made paintings, be it high-end exclusive pieces or low priced machine or hand-made lookalikes that adorn the walls of regular Indian homes. Prices of handmade paintings when imported can vary widely from as little as $5 to thousands of dollars or even more. Having said that, the market is fickle and an importer needs to be aware of the changing trends across the globe which today influence the choice of Indian buyers. But if you can source the right piece, at the right time, you can turn in into a money spinner!