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(Last updated: 10 Sep 2009)
Trends and opportunities
The market
China’s art market is growing at an astonishing rate. As exposure, interest and availability grow so does income and the ability to collect seriously. There are estimated to be 30 million art collectors and 300 collection organisations in China. China recently overtook France to become the third largest market for global auction revenues. It accounts for 7.3 per cent of the global market, which although significant, is still very much behind New York and London, which make up 43 per cent and 30 per cent respectively.
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 mid-2006 there were estimated to be 370 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
Many five-star hotels and high-end residential places are under construction to accommodate visitors for the World Expo 2010. 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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Tariffs, regulations and customs
There is no direct import charge on art coming into China; however tariffs are charged when the artwork is sold. On top of the price of the artwork a 17 per cent VAT fee and a 15 per cent tariff is charged. For the most up-to-date information please visit www.china-customs.com or www.customs.gov.cn for regulations and information on tariffs. |
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Marketing your products and services
Market entry
A good way to test and enter the Chinese market is through participation in one of the art fairs. Shanghai Art Fair is the biggest fair in Asia, and is attended by thousands of collectors from both China and overseas.
The alternative is to work with local galleries to hold a solo exhibition or themed exhibition. Many local galleries provide flexible exhibition space from 50 to a few thousands square metres. Artists are charged rental fees for space in public art centres or museums, and commissions in commercial galleries.
It is important to be aware of the preferences of collectors in China, when deciding whether to enter the market. This is not to say artistic integrity should be compromised, but it is worth noting that not all artists will find success in China. In general, and especially in Shanghai, collectors prefer figurative art pieces. At the Shanghai Art Fair, best sellers range from between US$2,000 to US$7,000 for small sculptures and paintings.
China’s significant art fairs
Art Beijing Contemporary Art Fair
April 2010, Beijing
Web: www.artbeijing.net
Annual contemporary art fair, with a focus on Chinese art.
China International Gallery Exposition
22-25 April 2010, Beijing
China World Trade Centre Exhibition Hall
Web: www.cige-bj.com/main_en.html
Shows work from 22 countries, most established art fair in Asia.
The Asia Pacific Contemporary Art Fair
9-12 September 2010, Shanghai
Shanghai Exhibition Center
Web: www.shcontemporary.info
Contemporary is the only international art show that provides a comprehensive, top quality overview of the artistic scene in Asia and creates a cultural cross over with the works of Western artists.
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Contact details
The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.
Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.
Austrade:
- Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
- Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
- Administers the Export Market Development Grants scheme.
- Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
- Provides advice to the Australian Government on its trade and investment development activities.
- Delivers consular, passport and other government services in designated overseas locations.
A list of Austrade offices (in alphabetical order of country) is available.
More information
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au |
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Sources
- ‘French Art Market Overtaken by China’, Peggy Hollinger
- ‘Sold!’, Gwynn Guilford, China International Business, April 2007
- Shanghai Art Fair 2007: Break into the China Market with your Australian Art, Austrade Powerpoint presentation
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