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Gallery's Role in Contemporary Chinese Art Market Thesis Gallery’s Role in Contemporary Chinese Art Market Thesis Presented in Partial Fulfillment of the Requirements for the Degree Master of Arts in the Graduate School of The Ohio State University By Xuan Wang, B.A. Graduate Program in Arts Policy & Administration The Ohio State University 2009 Thesis Committee Wayne P. Lawson, Advisor Margaret J. Wyszomirski Copyright By Xuan Wang 2009 Abstract This paper focuses on one particular segment in the international contemporary art market, the contemporary Chinese art market. As the fastest-growing segment, it offers a great opportunity for people to explore the mechanism in the art market, which is very different from markets for general goods. In addition, with its unique political and social characteristics, China has bred an art market quite unlike the western ones. In this paper, I attempt to explore the similarities and differences and the reasons behind between the emerging Chinese art market and the more developed western ones by picking out one important player in this whole market to study, the gallery. By exploring gallery’s role through the relationships and interactions it has with other players in the market, such as artists, auction houses, art museums, art critics, buyers, and government, I attempt to explain the mechanisms within the market and how these help shape the market as it is today. Four detailed interviews were conducted in this study with knowledgeable people currently working in the contemporary Chinese art market in addition to the desk research through the literature on the art markets. Similarities and differences were found and policy recommendations were made in regard to the deficiencies found through the study. The current global economic downturn has presented a good opportunity for the frenzied market to rethink and readjust, and thus strive for building a healthier and better art market in China. ii Dedication Dedicated to the my two years at The Ohio State University iii Acknowledgements This paper cannot exist without the kind and warm help from my advisor, Wayne P. Lawson, and my reader, Margaret J. Wyszomirski. They helped me go through the necessary road from narrowing down my messy and broad idea to the big revision in the end. They opened the door for me to the research world as I fumble my way through the two years study. I am truly grateful for their guidance and advices along the road. Also I want to thank the people whom I interviewed and consulted during the writing of the paper. This paper would make no sense without your insightful information. I pay my special thanks to Professor Qingsheng Zhu, director Yuning Teng, and researcher Zitao Tang for making the interviews possible. Lastly, I want to thank my family and friends who have been supporting me all the time. You made everything possible. iv Vita Education 2003-2007.........................................................B.A. Economics, Peking University, China 2003-2007.........................................................B.A. Art Studies, Peking University, China 2007-present ....................................................Master student, Department of Art Education, The Ohio State University Work Experience 2007-2009 Graduate Teaching Assistant, Department of Art Education, The Ohio State University 2008 Summer Program and Development Intern, Asian American Arts Center, New York City 2008 Summer Marketing Intern, Performance Space 122, New York City 2007 Spring 52nd Venice Biennale Chinese Pavilion Coordinator, China Arts and Entertainment Group, Beijing, China 2006 Summer Researcher and Assistant, Chinese Modern Art Archive, Beijing, China Field of Study Major Field: Arts Policy and Administration v Table of Contents Abstract ...............................................................................................................................ii Dedication ..........................................................................................................................iii Acknowledgments..............................................................................................................iv Vita ......................................................................................................................................v Table of Contents................................................................................................................vi Chapter 1: Introduction....................................................................................................... 1 Statement of Purpose…………………………............……………………….1 Structure of Paper and Research Questions…………......……………………7 Significance and Limitations…………………...……………………………..8 Chapter 2: Methodology and Theoretical Background......................................................13 Theoretical Background…………………….………………………………..13 Methodology……………......………………………………………………..16 The Art Zone 798…………………………………………………………….18 vi Four Galleries………………………………………………………………..21 Chapter 3: Data Report from the Interviews…………………………………………….35 Chapter 4: Historical Background of Contemporary Chinese Art Market……………...48 Introduction………………………………………………………………….48 Political Environment……………………………………………………….59 Public, Semi-public, and Private Art Museums……………………………...53 Art Fairs and Biennales………………………………………………………54 Development of Galleries……………………………………………………56 Development of Auction Houses…………………………………………….58 The Perfect Storm and the Timeline…………………………………………61 Chapter 5: Discussion and Comparison on Gallery’s Role……………………………...68 Introduction………………………………………………………………….69 The Dealer…………………………………………………………………...70 Types of Galleries……………………………………………………………75 Selection and Representation of Artists……………………………………..82 Promotion of Artists…………………………………………………………95 viivi Making a Sale………………………………………………………………122 Summary……………………………………………………………………131 Chapter 6: Implications for Policy and Practice………………………………………..135 Policies in Western Countries………………………………………………136 The Case of China…………………………………………………………..143 Bibliography ...................................................................................................................155 viiivi Chapter One: Introduction Statement of Purpose The contemporary art market has grown spectacularly in both volume and value in the past few decades. Between the year 2003 and 2008, the world witnessed a craze for collecting contemporary art unprecedented in history. It is now a global industry worth in excess of $50 billion a year (Robertson, 2008). The contemporary Chinese art market is one big part of the global frenzy. As works for Chinese artists fetched multimillion-dollar prices for the past five to six years, the international art world is waking to the power of the Chinese art market. China has not only emerged as a major global player in the manufacturing and financial industries, but also has developed its contemporary art market at a feverish pace, becoming the single fastest-growing segment of the international art market (Pollack, 2008 September). In 2007, Chinese art made up over 70 percent of the total contemporary Asian artworks for sale (Zan, 2007, p44), which is the fast-growing market segment nowadays. Prices for Chinese contemporary artworks have increased by 2,000 percent or more since 2004 (Pollack, 2008, p), with skyrocketing numbers frequently making newspaper headlines. The most sought-after artists are living extravagant superstar 1 lives. According to the Art Price Index Chinese artists took 35 of the top 100 prices for living contemporary artists at auction in 2007. Don Thompson called Beijing the third most important art market in the world after New York City and London in his 2008 book, The $12 Million Stuffed Shark. The founder of arts Economics Dr. Clare Mc Andrew said in a report commissioned by The European Fine Art Fair (TEFAF), Globalization and the Art Market, Emerging Economies and the Art Trade in 2008, that China had become the third art market with market share of 8% in the world, following USA and UK, and China will go beyond UK and become the second art market in 10 years (Artdaily.org). At the peak of global art market frenzy, the most severe global financial crisis since the Great Depressions happened, and hit almost all the industries including the art market worldwide. Art critic and film-maker Ben Lewis made a documentary titled “The Great Contemporary Art Bubble”, in which he discovered a world of complicated deals, unusual market practices, widespread secrecy as well as passionate enthusiasm for contemporary art. Whether the global art market was a big bubble or whether it has burst under the economic downturn is still under debate, but the simple and clear fact is that a market cool down is now evident globally. The newest and most attractive darling during the boom, the contemporary Chinese art market, attracted lots of attention since the question on whether the bubble will burst finally has an answer. One article in New York Times asked 2 whether the art market in China is cold or hibernating. Other comments include the opinion of the market has “crashed” or “the bubble has finally burst”. Some claim that the Chinese art market is not hit so hard by the pulling back from foreign buyers since the local young wealth seems to be taking up some of the slack. Still others think the current market slowdown is a good correction opportunity for not only the art market in China, but the entire art market worldwide. So in this paper I attempt to look back at the recent fame in order to see how this leads to the current
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