Sotheby’s Fine Wine Auctions Sell $8 Million Over The Weekend As Chinese Collectors Dominate In Hong Kong
Hong Kong is now the world's top wine auction market, having surpassed London and New York
This weekend, Sotheby’s began a five-day string of auctions in Hong Kong — continuing until October 8 — with auctions of fine wine from the cellars of two anonymous American collectors. Though one of the world’s newest hubs for wine, due to a combination of ending wine duties, encouraging mainland buyers to take part in wine auctions, and growing demand both in Hong Kong and in mainland China, Hong Kong has within a few short years become the world’s #1 auction market for wine, overtaking traditional leaders London and New York. From James Pomfret in Reuters:
“Asian buyers represented 99 percent of buyers in this two-day sale,” said the head of Sotheby’s international wine department Serena Sutcliffe. “Hong Kong has become Sotheby’s most important wine center, ahead of very successful auctions in New York and London,” she added in a statement.
Posted in auction, Business, China, Investment, Luxury
Tagged auction, chateau lafite, China, chinese collector, CITIC, fine wine, hong kong, hong kong auction, Investment, joint venture, mainland, mainland china, new chinese collector, petrus, sotheby's, wine
Dozens Of New Chinese Collectors Converge To Discuss Art Values, Top Artists, And Closing China’s “Art Gap” Between Key Figures And The Public
The First Annual Conference of Collectors of Chinese Contemporary Art attracted a number of top critics, artists, and journalists
We’ve been looking a lot at the New Chinese Collector — the up-and-coming art collector who has become a fixture at art auctions around the world without really being understood by many seasoned collectors or auction houses. What is so fascinating about this group is the way that mainland Chinese collectors have really developed organically, and come together out of collective interest in the subject to become more informed about what art is out there, how much it costs — and should cost — and which artists they should be buying for their personal collections.
Recently in China, the 5th Annual Songzhuang Art Festival (which we profiled last month) was held in Beijing, with more than 1,000 artists taking part. As one of China’s most well-attended art festivals — owing mostly to Beijing’s international visibility and status as China’s artistic and cultural center — the Songzhuang festival lends itself to important or high-profile events. This year, one of the most unusual of these was the “First Annual Conference of Collectors of Chinese Contemporary Art” (首届中国当代艺术收藏家年), headed by art critic Li Xianting (栗宪庭). As the domestic audience becomes increasingly interested not only in museums and galleries but in specific types of art, and the middle class continues their (new) tradition of diversifying assets, it will become even more important for the domestic “New Collector” to understand the art and the market itself. At Songzhuang, the “all star cast” of attendees is a good indication that many in China are motivated to help their art market (and art audience) mature and develop rapidly.
As this Artintern article (Chinese) points out, many influential members of the Chinese art world — including conference chairman Li Xianting — feel that it is important for the Chinese collector to become intimately familiar with Chinese contemporary art not only to fill a gap in public knowledge but also to catch up to western collectors of Chinese art:
Chinese contemporary art began with the opening of China [in the late 1970s]. However, with no standard of value in the domestic contemporary art market, collecting and business in contemporary Chinese art was started in the West. Since the late 1970s in Chinese contemporary art — for example after the “Stars Fine Arts Exhibition — foreigners in Beijing have created a ring around the market, a ring which is still increasing. When overseas institutions or individuals gather up works at a low price that we have identified as a representation of Chinese contemporary artwork, then sell them back to China at a very high price, [these artists] are reported in domestic media as overnight successes and superstars. This has been to the detriment of the local Chinese contemporary art market.
At the annual meeting, the Chinese contemporary art critic Li Xianting — the chairman of the event — said, “To establish China’s own contemporary art market, we have to establish China’s own artistic value standards and use these standards to guide the market — is the art guiding the money or is the money guiding the art? China must take its own stand.”
Posted in Art, Business, China, Chinese Art, Culture, Museums
Tagged beijing, China, Chinese Art, chinese art collectors, chinese contemporary art, contemporary art, mainland china, new chinese collector, songzhuang, songzhuang art festival
As Hong Kong “Stirs From Slumber” And Buyer Confidence Remains High In China, What Can We Expect To See Next Week?
Zeng Fanzhi is one of the historical Chinese contemporary artists up for auction in Hong Kong next week
We’ve been interested in the upcoming Hong Kong Sotheby’s auctions of Contemporary Chinese, Southeast Asian and other Asian art, with a particularly obvious fixation on the Chinese side, for some time. After the surprising turnout of mainland Chinese, and their willingness to go far above and beyond lot estimates to take home something they’ve set their hearts on, Sotheby’s is likely expecting a good proportion of bidders both from the mainland and other areas of Greater China — definitely Hong Kong, since buyers from that market have been something of a fixture at Chinese art auctions for ages. And while the unpredictable nature of art auctions makes it difficult to forecast how next week’s auctions turn out (although total revenue estimates for all of the Hong Kong auctions are close to US$100 million), many people are excited and motivated to buy some high-quality, historical art.
One thing that makes the auction of contemporary Chinese art even more interesting to me on a personal level is the way it will coincide with “Golden Week,” a week of celebrations coinciding with both Chinese National Day and the Mid-Autumn Festival. If last year’s turnout was any indication, Golden Week could draw well over a million mainlanders to Hong Kong this year, most of whom are coming to the city either to shop for expensive objects or eat and drink for days. While Golden Week, on its own, really shouldn’t affect the Sotheby’s sale too much, it is within the realm of possibility that some of the shopping-mad mainlanders might be shipping a Yue Minjun or Liu Ye painting home along with their boxes of luxury goods.
Another reason I’m excited about the Hong Kong sales next week is because of this article, published today by Art Market Insight, which is bullish on the article because of the comparatively fast re-emergence of Hong Kong following the global economic crisis:
Once again, Sotheby’s is weighting its sale in favour of the Contemporary segment (Contemporary Asian Art) which carries the richest of the three catalogues with 190 lots and a total revenue estimate of $12.5m. In order to re-kindle interest amongst its biggest clients, the auctioneer has built a catalogue of very attractive signatures. Among the star lots: a powder drawing by CAI Guoqiang , Money net NO.2, estimated at HKD 4.7m – 5.5m, ($606,000 – $710,000), several paintings by YUE Minjun , including Hats series – The lovers expected to generate around $400,000 (estimated HKD 2.8m – 3.5m), three paintings from the famous Chinese Portrait series by FENG Zhengjie including a superb contemporary Amazon (4 x 3 metres) estimated at $100,000 – $130,000 (HKD 800,000 – 1m). A very similar monumental portrait fetched $133,000 in June 2009 (Phillips de Pury & Company, London, £81,000).
Posted in Art, auction, Business, China, Chinese Art, Culture, Luxury
Tagged Art, art market, art market insight, artwork, auction, autumn auction, China, chinese, chinese contemporary art, contemporary art, contemporary chinese art, cuisine, golden week, hong kong, liu ye, Luxury, mainland, mainland china, mainland chinese, national day, shoppers, shopping, sotheby's, wealth, yue minjun
1.8 Million Tourists And Shoppers Made The Trip Last Year; Will This Year See Similar Figures?
Photo Courtesy Hong Kong Tourism Board
Hong Kong retailers, hoteliers and merchants of all shapes and sizes are getting ready for the second of two “Golden Weeks” which take place annually in China — the first celebrating Chinese New Year and the second beginning on National Day (Oct. 1) and continuing through the Mid-Autumn Festival (Oct. 3) until finally ending on the 8th. For Hong Kong’s luxury retailers, Golden Week has traditionally provided a much-needed boost to their sales, particularly as fall begins and the flow of foreign tourists slows down significantly.
For many mainlanders, however, Golden Week is a chance to hop over the border and do some serious shopping. As Hong Kong retailers aren’t saddled with the same high sales and luxury taxes as those in the mainland, shoppers from throughout China often take advantage of the timing of Golden Week to enjoy the cultural ambiance of Hong Kong while stocking up on expensive products that would — at home — cost up to double the price.
Today, the New York Times Globespotters blog gives a glimpse into the fun (and chaos) of Golden Week in Hong Kong, when millions of shoppers (many of whom have saved up throughout the year for their HK shopping spree) converge on this small but densely-packed city to queue up for hours and open their wallets:
European designer emporiums, jewelers and gold shops will all be packed, as mainland Chinese rush to buy goods that are both cheaper, and more likely authentic, than back home. (Unlike China, Hong Kong has no sales or luxury taxes.) For upscale shopping, avoid the crowds by trying department stores like Lane Crawford instead.
As far as the local government is concerned, you can’t have too many festivals. During this hectic period, there is also the Hong Kong International Arts and Antiques Fair from Oct. 3 to 6, and the Hong Kong International Jazz Festival from Oct. 1 to 15. Jazz and antiques aren’t big Chinese tourist draws, so they might be another way to escape from the maddening crowds.
In addition to these festivals and events, this year’s Golden Week will also coincide with Sotheby’s Autumn Auction of Contemporary Chinese and Asian Artwork, taking place on October 6 in Hong Kong. It’ll be a great opportunity for luxury buyers who have come over from the mainland to bid on some domestic contemporary artists and maybe take home a few Yue Minjuns, Zeng Fanzhis or Cai Guo-Qiangs in addition to the boatloads of Cartier, Louis Vuitton, Gucci and Rolexes they’re going to tote back over the border.
Posted in auction, Business, China, Culture, Economy, Luxury
Tagged China, chinese, chinese new year, commerce, golden week, HK, hong kong, Luxury, mainland china, mid-autumn festival, national day, october, shopper, shopping, tourism, travel, wealth
Watchmaking Iconoclast’s New Location At Jin Bao Street’s Legendale Hotel Features Decor And Accents Shipped From Paris
Richard Mille's flagship store in Beijing brings an air of bygone Europe to Beijing's Jin Bao Street
Richard Mille, the French luxury watch brand,has just opened a flagship store in Beijing’s five-star Legendale Hotel, according to a company press release. Mille’s fixation with high-tech materials and unique alloys inspired by F-1 motorsport and the aerospace industry, has made him one of the most unusual — and fastest-rising — luxury watch forces in the world, and with the flood of spending we’ve seen in China on luxury goods like watches, cars, wine, jewelry and contemporary art, Beijing’s flagship Mille store should attract the city’s free-spending elite in no time.
[T]he flagship occupies 260 square meters of space at this platinum 5-star hotel that represents European elegance and luxury in the heart of this capital of the People’s Republic of China. With such a prime address and grand interiors, Sparkle Roll Group Limited, the exclusive dealer of Richard Mille in PRC, invested HK$45 million in building this flagship in Beijing.
Posted in Art, Business, China, Fashion, Investment, Luxury
Tagged Art, beijing, China, china market, contemporary art, contemporary chinese art, elite, Fashion, flagship, foreign direct investment, france, french, Investment, jewelry, jin bao street, Luxury, luxury watches, mainland china, mille, richard mille, sino-french, watch, wealth, wine
Fashion Brand Sees Potential To Broaden Foothold In Lucrative, Yet Challenging Fashion Market
Ralph Lauren's sole free-standing location in China is located in Shanghai's luxury Jin Jiang Dickson Center. The company plans to branch out very rapidly in coming years
Wing-Gar Cheng writes for Bloomberg today that American retailer Ralph Lauren hopes to open 15 new stores in China annually in coming years. While the signature Ralph Lauren style has been adapted — or “copied”, depending who you ask — by brands with a long-time presence in China, like South Korea’s E-Land (not to mention counterfeiters throughout the country), the number of free-standing Ralph Lauren locations has remained limited. With the global demand for higher-end items remaining relatively anemic in the North American, Japanese, and European markets — despite improvements — China, with the high potential of its second- and third-tier cities, remains a sought-after target by mid- to higher-range fashion brands like Ralph Lauren.
As Cheng writes, rapid expansion in China is not simply driven by idealism. There is a great deal of untapped potential throughout the underserved mainland, well illustrated by a quote by George Hrdina, president of Ralph Lauren’s Asian business, who said, “We do more Ralph Lauren business on the island of Manhattan, New York, than we do in Hong Kong and China.” Clearly, adding 15 stores per year is less unrealistic than it may initially sound.
Posted in Business, China, Culture, Fashion, Investment, Luxury
Tagged bloomberg, China, chinese, Fashion, hong kong, Luxury, LV, LVMH, mainland china, New York, polo, ralph lauren, wing-gar cheng
Pudong Shangri-La Still Enthralls Guests And Sets The Standard For “Luxury With Chinese Characteristics”
The Pudong Shangri-La in Shanghai offers stunning views of the waterfront
The five-star Pudong Shangri-La, one of the crown jewels of Shanghai’s skyline, continues to draw accolades from seasoned global travelers, who are consistently struck by the hotel’s extravagance as well as its unique story. Having begun construction when Shanghai’s Pudong section was scarcely more than a marshland, the Shangri-La quickly established itself as one of East Asia’s finest luxury hotels. With the newest extension (finished in 2005) adding even more opulence to the striking building, travelers have even more reasons to make this coastal city a stop on their next Asian business or tourism jaunt.
Today, Robert La Bue makes the Pudong Shangri-La the target of his “Mr. e-Traveler” column, writing, “It’s always a pleasure to return to a hotel that feels like home. The fact that a 948-room property can pull this off is a credit to Pudong Shangri-la.”
As La Bue goes on to note, the hotel’s unique international and Chinese appointments set it apart, even among other world-class five-star luxury hotels:
Posted in Business, China, Luxury
Tagged asia, China, chinese, east asia, five star, hotel, Luxury, mainland china, pudong, shanghai, shangri la, shangrila