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(Last updated: 9 Mar 2011)
Trends and opportunities
The market
China’s art market is growing at an astonishing rate. As exposure, interest and availability increase, so does income and the ability to collect seriously. There are estimated to be 70 million art collectors in China. In 2009, while the US and
UK auction houses did all they could to reassure bidders and stabilise the market, the Chinese market was already well on the road to recovery – at a faster pace than anywhere else. By the end of 2009, the total revenue from fine art sales in China (excluding antiques) represented more than 17 per cent of the global market versus 7.8 per cent in 2008.
China is an interesting market, as there is a greater focus on auction houses than in the West. These often act as primary markets, selling works directly from the artist. This doesn’t occur in the West, and it is this practice that has, according to some, created an art market bubble in China.
In particular, the contemporary art market has exploded in the last few years. The market is generally focused on Chinese contemporary art, but there is also interest in foreign art.
The main art-focused markets are Beijing and Shanghai. Beijing has developed a reputation as an art centre in recent years, especially with the emergence of the 798 district. In 2009 there were estimated to be more than 300 art galleries in Beijing, many of them new. Similarly, there are over 800 commercial galleries in Shanghai, with 60 focusing on contemporary art. Shanghai also has a number of sculpture parks and more than 50 ‘creative communities’ and art districts. Beijing tends to be focused on Chinese art, while Shanghai has more of an international presence.
Opportunities
According to the 2010 Hu Run Wealth Report, there are more than 875,000 millionaires in China – citizens with more than US$1.47 million. One-quarter of the China’s wealthy enjoy collecting art including contemporary art and Chinese classical art.
Many five-star hotels and high-end residential places are under construction in China. This provides many opportunities for decorative arts, especially for sculptures and decorative oil paintings, although local art market is highly diversified with multiple needs.
Competitive environment
The main competition for Australian exporters is from local artists. At present local collectors remain focused on home-grown artists and prefer to buy familiar artists’ work. However, there are over 60 established commercial galleries in Shanghai promoting international art. Other commercial galleries tend to focus on Chinese emerging artists’ works.
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