
What will happen to the UK antiques trade in these straitened times? It has been struggling since 9/11 when many Americans stopped travelling abroad. This situation continued with the fall of the dollar against the British Pound which made buying here in Britain too expensive for most Americans.
What must be understood is that American dealers, coming here and filling containers to sell in the USA, has been one of the driving forces of the UK's antiques trade. When they stopped coming, so trade became more difficult. Over the last 7 years, antiques fairs (shows) have gone out of business or cut back on the number of events each year. In the middle and top of the market, dealers have cut back on the number of fairs they were willing to do. Just covering the stall (booth) rents and other costs involved has become harder. Making a reasonable profit for the risk and time has become something of a miracle.
Meanwhile, stores and antiques centres have closed and many older dealers have retired.
Tastes have changed. Now brown furniture is hard to sell for a decent price. Many other antiques are no longer particularly fashionable either. Over the last 10 years, here in the UK, we have seen minimalism become fashionable in home decorating and it's a style that doesn't suit many antiques. Of course, Art Deco and other modern items do fit in with this kind of decor and prices have risen in some areas.
Now the recession has started to bite. Banks are unwilling to allow small businesses, like antique dealers, to have overdrafts. Without this facility, dealers can't buy fresh stock so their stock doesn't change. If they do fairs, they are taking much the same things to fair after fair and regular visitors have seen it all before and don't buy it. Prices for many antiques are low in the auction rooms too so offloading 'tired' stock there won't raise much.
It's not all doom and gloom for everyone. Some dealers have transferred their businesses to eBay and their own independent websites. They have adapted their stock and prices to the new conditions and so can make a living and, in some cases, a good profit.
The very top dealers, with good client lists and contacts among the richest collectors, can still sell profitably but these don't generally have the trickle down effect on the rest of the trade that can come from a healthy middle market in antiques.
When the kind of dealers who do the Olympia Fine Art & Antiques Fair, Penman Fairs and other good multi-day fairs sell well, they then go out and look for new stock. They buy from smaller fairs, dealers and antiques centres. In turn, these dealers need to restock and start visiting the one day fairs, car boot sales and part time dealers. This is the trickle down effect.
The other factor against the antiques trade is the fall in the housing market. Whenever this has happened before, the sales of antiques has fallen. If people aren't moving house, they don't buy much furniture or other objects.
Is there any hope? I don't know. The most enterprising dealers will survive the recession with their businesses intact but probably not without changes. It will be interesting to see how those dealers alter their buying and selling habits to run successful businesses.