Caroline Cai is the president of Christie’s China. Ms. Cai manages Christie’s overall operations in China. She oversees the development of the company’s range of services to its Asia-based clientele, and the expansion of Christie’s business presence throughout the region.

As the company’s leader on the ground in China, Ms. Cai manages Christie’s company offices and executes all activities taking place within the region. In addition, she is responsible for expanding Christie’s educational and cultural activities and assumes an active part in promoting the international exposure of Chinese Art. Ms. Cai also plays an advisory role to mainland China-based clients, counseling them on both the Chinese Art categories offered through Christie’s, as well as on the scope of the overall Chinese marketplace. She also oversees the process of strategizing business objectives that further elevate China’s culture in the global marketplace, while both protecting and celebrating its cultural heritage. Ms. Cai is Christie’s representative for the Greater China region, and supports the company’s participation in existing cooperative programs between China and other countries across Asia.

Ms. Cai received her bachelor’s degree from Wellesley College in Massachusetts and a master’s in public affairs from Princeton University. She was born and raised in Beijing, and entered Beijing University before pursuing overseas education. She speaks fluent Mandarin and English.

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Q: The value of the online art market in 2013 was estimated to be around US$1.57 billion, and is expected to rise to US$3.76 billion by 2018. What do you think are the driving forces behind this growth? What does it say to you about the importance of the online market?

A: Today, there is a huge cultural surge around the world toward the experience of art. At the same time, the growth of social media, both online and via mobile, definitely helps make art much more accessible. That’s what we see as the reasons for the boom and the continued growth of online art market. For Christie’s, we had our first online auction in December 2011. So far, we have hosted 85 online sales in total, with clients from 185 countries participating. In the first half of 2014, online-only auctions continue to attract new buyers, and sales of US$14.4 million represent an 87% increase over the same period last year.

The online market is important to Christie’s because we have been developing our new client strategy of really focusing on, and serving, the client. The online market provides us with the means to connect with all potential active and interested buyers by increasing the accessibility of sales. For us, online-only sales supplement our traditional live sales calendar, providing the flexibility to host year-round auctions.

Q: Could you describe your client profile for online auctions? How is it different from your client base for the traditional auction business?

A: While we are continuing to learn and adapt to serve our audience. What we can say is that online-only sales are truly global, with visitors from 179 countries. Because online auctions require the use of technology, our clients in this field are relatively young. 53% of all registrants online in H1 2014 were under the age of 45.

Take our first online sale of Chinese artworks in last July, for example, the sale of Dehua porcelain drew wide participation from countries across the globe, including China, France, and Australia, to name a few. Of particular note, an impressive 50% of successful buyers were completely new to Christie’s, which truly reflects the globalization of art auctions and sales.

Q: How would you describe the importance of an online auctions platform to your business? What percentage of your revenue is generated by online auctions versus traditional auctions? What do you think this ratio will be in five years?

A: Christie’s online channel demonstrates growing potential, while representing a small overall proportion of sales. In 2013, online-only sales totaled US$20.8 million—acting as a clear, key driver in attracting new buyers and increasing global accessibility to acquiring authenticated art and luxury goods. In the first half of 2014, we achieved US$14.4 million in online sales, which represents an 87% increase over the same period last year. The top price achieved in any of our online-only sales was US$905,000 for Richard Serra’s Pamuk, sold in May this year.

Christie’s now has three major business channels: live auctions, private sales, and online-only sales. At the moment, live auctions make up about 60% or more of the company, and online-only sales make up a rather small percentage, but have demonstrated growing potential. We believe online auctions will continue to drive traffic, and our online presence in China will be of particular importance given the high level of digital literacy among Chinese consumers and collectors. In the future, we will continue to invest in on our online platform, and certainly expect strong growth.

Q: What are the challenges facing this new business sector, and how do you foresee meeting and addressing those challenges? Are there any specific challenges with online auctions that you view as unique to the Chinese market?

A: Some may regard it as a challenge since bidders are not able to see the lots or works sold online in person. But we are looking into ways to solve this problem. First, we hope to use the old technology of art exhibition spaces, which is why we are building more exhibition spaces around the world so we can show our art in more places.

Another very crucial point is that the most important thing Christie’s has is its brand, and the most important element of the brand is trust. Of all the thousands of lots we sell online, we never sell anything that has not been examined and vetted by our experts.

In China, we will continue to invest in developing our online presence, using technology to engage with, and increase accessibility for, our Chinese clients, especially new buyers.

Q: What is your strategy for remaining competitive in the rapidly growing art market in China?

A: Today, China is one of the most exciting art markets in the world. Naturally, a fast-growing market has given rise to new entrants and competition in the field. The business environment in many industries is moving fast, and our strategy takes into account that we need to adapt to our clients and how they want to engage and acquire art, which is why we have focused on serving them online in new places, while continuing to offer art in a wide variety of categories. It is important to make sure that we offer art that people are looking for. In addition, our brand, as a nearly 250-year-old auction house, also helps us win buyers’ trust, including those new to Christie’s. •