This 1981 untitled piece by Jean-Michel Basquiat is now on Auction on Artnet and there is a $280,000 bid on it with one day remaining till online auction closes.
In my view, generally the price tag for a piece of art increases when:
- The work is by an artist who pioneered a new movement or spearheaded innovations in style (e.g. Picasso)
- Famous collectors, gallery owners and museums buy the pieces by an artist (e.g. Wifredo Lam)
- Or a scenario where the artist has one or both of the above factors going for her and the work is expensive only because she was the one who did it (e.g. Andy Warhol)
The fact that a simple drawing by Jean-Michel Basquiat can command a stunning $280K price tag demonstrates that the value of brand equity for this contemporary artist is quite high (factor #3 applies here).
Brand equity is the additional value that a recognizable brand name adds to a product offering.
One might wonder “What is the total brand equity of an artist like Jean-Michel Basquiat?” I have some ideas on how to make a rough estimate and will do so in a sequel to this post in few days.
