Auction Houses Combining Popular Lots To Attract Even More New Chinese Collectors
Up for auction next month at Borobudur's Singapore auction of contemporary Asian art and fine wine: Xu Bing's "Free Bird"
With emerging bidders like the New Chinese Collectors, seen in action at recent auctions of Chinese antiquities (and by other auction attendees throughout the summer), taking the spotlight and garnering the attention of major auction houses like Sotheby’s, smaller auction houses have taken the buying trends of these new bidders to heart and retooled their Asia strategies to appeal to these buyers and drive growth in the region.
In recent auctions, Indonesian auction house Borobudur has combined two of the Chinese buyers’ favorites — contemporary art and fine wines — into combination lots at their Singapore auctions. By undertaking this kind of Asia-centric initiative like combination auctions, Borobudur is likely to attract more mainland Chinese buyers, hoping to double up on good art and wine and bring back a decent-sized haul from Southeast Asia.
Chinese Firms, Sovereign Wealth Fund Taking Advantage Of More Affordable Investments Overseas In Wake Of Economic Slowdown
Graphic by Erik Bethel
Chinese investment overseas has been one of the major news developments of the last year. Although Chinese outbound investment is nothing new, particularly after the country joined the WTO in 2001, falling asset values abroad — along with a gradually strengthening yuan — have made overseas investment a major priority for the government (and its state-owned enterprises) as well as private Chinese companies.
If a recent article by China’s Peoples’ Daily is, indeed, true, it looks like outbound investments, at nearly US$150 billion, nearly triple last year’s amount of US$52 billion, will continue the dramatic upward trend we’ve seen them follow over the last 5 or 6 years.
As Erik Bethel (an excellent source on investing in China and Latin America) writes in Seeking Alpha, the People’s Daily article highlights some quotes by Fan Chunyong, the standing director of China Industrial Overseas Development and Planning Association, in which he says that the sheer volume of year’s outbound investments by China — which are, at nearly US $150 billion, for the first time higher than inbound investments — indicate that China is already making a shift from a “manufacturer” to a “capital exporter.”
Posted in Art, auction, Business, China, Economics, Economy, Investment
Tagged assets, China, chinese, erik bethel, FDI, foreign direct investment, Investment, outbound, overseas, peoples' daily, seeking alpha, sino-latin capital, WTO
Spanish Luxury Exporters Look To China As New Market For Rare And Expensive Ham, Jewelry
Spanish ham producers are hoping to get their products associated with wealth and sophistication in China
When people think of China — or the eating habits of urban Chinese — they probably don’t think of Spanish ham. But if Spanish ham producers have their way, China will be one of their top markets in coming years. Recently, after years of trade negotiations, Spanish ham was given the greenlight in China, after which they began a marketing blitz designed to get their products associated with wealth, luxury, and distinction among wealthy Chinese. To start off this marketing effort, a Spanish ham tasting event was held recently at Beijing’s LAN Club, one of the city’s most exclusive restuarant/nightclubs, along with a Spanish jewelry modeling show. Additionally, ham producers began a simultaneous effort to woo Japanese residents in China’s major cities, as these consumers — some of the world’s most seasoned luxury buyers — are already familiar with Spanish hams and require less dedicated marketing efforts.
As the Latin American Herald Tribune writes, as for every industry the Chinese market has great potential as a destination for ham producers, but it won’t be easy to convince Chinese buyers to spend top dollar on a culinary product with which they’re not that familiar — particularly in the age of swine flu:
The ham, produced in Extremadura by the Montesano company and distributed in China by the Olivarero Chinese Spanish Consortium, or COCE, was the star of a luxurious and glitzy evening at the distinguished club, although the jewelry of Madrid designer Paloma Sanchez, who has a store in Beijing, was also prominently featured.
“This is an event to launch the ham in Beijing, to see if there’s any demand and position (it) as an exclusive luxury product, for the upper class. Therefore, we’ve accompanied it with the jewelry show,” said Daniel Martin, COCE’s general director and the organizer of the event.
Posted in Business, China, Investment, Luxury
Tagged beijing, branding, China, COCE, extremadura, food, ham, japanese, jewelry, Luxury, marketing, montesano, olivarero, paloma sanchez, spain, spanish, trade, wealthy
Japanese Luxury Automaker Plans To Open Beijing Showroom By Q1 2010
The Mitsuoka Orochi will retail for around 800,000 RMB (US $117,177) in China when it arrives next year
The growing Chinese luxury market is a prime target for many Asian companies that have found demand in their home countries — mainly South Korea and Japan — either growing at a snail’s pace or simply remaining stagnant. As formerly luxury-mad consumers in traditional markets like Japan cut back on their spending, high-end Japanese companies have started to look abroad for more opportunities, with China remaining the natural choice as a result of its proximity and massive population.
Recently, Japan’s Mitsuoka Motor Co., one of the country’s major luxury automakers, announced their plans to enter the Chinese market next year, starting with a showroom in Beijing that is slated to open in April. To lead their China efforts, the company will display their Orochi model at next year’s Beijing Auto Show and follow up their Beijing strategy with new dealerships in other top-tier cities:
The Orochi will spearhead Mitsuoka’s debut into China. The company plans to display the car at next year’s Beijing Auto Show, and to open dealerships in Beijing, Shanghai and Guangzhou.
Posted in Automobile, Business, China, Investment, Luxury
Tagged auto, Automobile, beijing, car, China, Economics, guangzhou, japan, japanese, Luxury, mitsuoka, mitsuoka orochi, orochi, shanghai, vehicle