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When Creative Africa Meets China

Dr. Marina Guo


John Howkins Research Center for
Creative Economy
Shanghai Theatre Academy
ACEC 2013 Oct 9, Cape Town
Outline
Overview of Cultural & Creative Industries in China
SWOT Analysis of African Creative Goods and Services
Seizing the Opportunities in China Economic and Cultural Development
Current position & Key Barriers for African Creative Goods & Services
Catching the Fast Train: Exploring China Market Strategically
Tips for Doing Business in China
Curtain Up
--the rising of creative economy in China
Creative
Society
Creative
Economy
Creative
Industry
Coordination Spill-over
Creative community
Branding Strategy: city, region
Institutional change: people
Social innovation
Innovation spill-over
CI as input factor in economy
Industrial convergence
Soft infrastructure: environment
Economic innovation
Knowledge spill-over
Clustering strategy
Hard infrastructure: clusters
Individual creativity
Input & output
Chinas economy may be slowing a little, but its demand for creative and cultural products continues
to grow rapidly, fuelled by a huge emerging middle class with higher disposable income.
Deloitte have estimated that the cultural industries will grow at 20 p.a. for the next 7Y.
China Creative Economy Strategy
Industrial
re-structuring
Convergence
Spill-
over
Economic
Cultural
Social
Development
Cultural Policy & Strategy in CCI
Institutions + Investment + Talents +Entrepreneurship
Creative clusters
cultural policy
(2004-2008)
Incubator
Talent development
(2006-2010)
Capital driven
Social innovation
(2011-2015)
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Grass-root
Creativity
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Government
Initiatives
3 Major Trends that will impact CCI in China (Micro-)
Urbanization & Regeneration
state-driven investment in cultural development
Emerging Middle Class
increasing consumer spending on symbolic value
Economic Transformation
CCI as Pillar Industries & industrial re-structuring
1.
2. The Emerging Chinas Middle Class
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Investment &
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OEM
Original Equipment
Manufacturing
Original Design
Manufacturing
Original Brand
Manufacturing-
World Studio World Factory World Market
Labour & Asset
Intangible Asset

Culture &
Arts
2
Fashion
&Lifestyle
4
Animation &
Gaming
3
Digital
Media
5
Design CI
1
Creative
Sectors
Film TV & Visual
Communication
5
Architecture
6
Advertising
5
China CCI Overview by sector
Film Industry
China has become the 2
nd
largest movie market in the world
The total revenue from Chinese movie industry has been over 17 billion
Yuan (USD2.74 billion, R28 billion) in 2012,
Annual box ofce reached average 30% increase in lm industry since
2002
48.5% for China productions, 51.5% for imported movies
China produced 745 feature lms in 2012, No. 3 after hollywood and
bollywood.
Total 13,118 screens in China: 3832 new screens in 2012, about 10.5
new screens every day in China, all digital cinemas
2 billion cinema visitors in 2012, 1.5 billion visitors are from rural areas
low-cost comedy Lost in Thailand become the Chinese blockbuster, box
ofce over 1.2 billion yuan in China market (R2 billion)
Lost in Thailand
Investment: USD5m
China B.O.: USD200m
Digital Content Market in China

The digital content industry and new media business are one of the fastest growing
sectors in China, thanks to the development and integration of three net operations
telecommunication, cable and internet. It is also highly endorsed by the government at
all levels.
Products and services in new media formats enjoy a more open and flexible market
Content is King! Enormous demand for creative digital content and high definition
programs are desired from ever increasing number of new media operational platforms
and independent production studios.
Foreign production companies are advised to set up JV or partnerships with local
production companies in China.
Virtual Product become a new trend of cultural consumption in China
E-book, digital music, short lms, online video, mobile games and other digital content has been
replying on mobile internet opened new strategy of Internet culture consumption market.
China arts trade reached 40.4% of world art market
6 Chinese Artists out of top 10 artists in terms of auction value
5 Chinese auction houses out of top 10 auction houses
-- Artprice, Global Arts Market Development Market 2011

China became the biggest auction market for art

Chinese Famous Painter
QI Baishi
Auction Price: USD 71m
The Highest in world art
market 2011
Overview of Africa Creative Products & Services in China


Cultural Diversity: African Arts and Culture have a role to play in cultural diversity in China,
African products and services cannot stand along without a strong presence of African culture
Cultural Identify: An united African cultural identity is well presented in China rather than
individual countries. Egypt & South Africa are the most recognized countries in China
Cultural Consumption: Chinese consumers are more willing to pay premiere for having
unique African experiences rather than traditional African arts & crafts
Cultural Offering: 3 creative sectors (commercial value) have great potential in China market
1. Design
2. Contemporary Visual Arts
3. Digital content with African features:
eg African music, distributable African stories
i
n
t
e
r
n
a
l

Strength Weaknes
cultural richness & heritage
uniqueness & variety of offering
world recognition in music,
performance arts, crafts, film
emerging design sector
weak commercialization capacity
insufficient supporting measures
lack of funding & investment
low presence of cultural activities
missing cultural trade agencies
E
x
t
e
r
n
a
l


Opportunity Threat
African cultural renaissance in 21C
China consumers buying power
China Government priority in CCI
strengthened Sino-Africa trade
relation and cultural programmes
China regulation & barrier in CCI
competing with developed
countries & BRICS in China market
investment & return scenarios
fast pace Africa and laid-back Africa
SWOT: African Creative Goods & Services in China
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Reconsidering Sino-Africa Trade Relation in 21
st
C
Geographic
Strategy
Recommendation
- Policy level
- Strategy level
- Institutional level
- Creative sectors
Africa-China CCI strategy
Enabling Cultural policy : to promote African goods and services in China
Supporting measures: funding, incentives, human resources, networking
platform
Institutional strengthening: to constitute new structure and presence in
China
Policy and industry dialogue: to build up cultural understanding and long-
term relationships
Cultural trade promotion program: representation at trade events,
business tour, technical assistance, knowledge transfer, etc
Breaking through country barriers in China
Doing business in China requires investment & partnership before generating revenue.
Public sectors & Organizations, like governmental Dept, Trade promotion council,
creative industries association, shall play a role in carrying authority in the China market,
facilitating African creative business to meet their counterparts and potential clients with
networking and financial supports
African creative companies and individuals (artists) are advised to work with a Chinese
local partner when they first enter China market, taking advantage of their partners
knowledge and sales channels and understanding of how to do business in China.
If African business is committed to have an operation in China, It would be good to
recruit Chinese employees and Chinese representatives to ensure smooth
communications with clients.
The first project in China market is important, as a successful completed project will
serve as a demonstration of African creative capacity to attract more local clients.
IF you want to grow the business in China market, it is essential to have permanent local
presence to be visible in the local market and committed to constant communication with
clients.
Potential By Sector:
1. African Design
Tips:
Chinese manufacturers are reluctant to buy creative
design service from foreign companies due to cost
consciousness.

They prefer to buy the lump-sum service including
creative concept, production and promotion. The
creative concept is not regarded as worthwhile if
implementation can not be ensured.
Go Lifestyle & Industry
Potential By Sector: 2. African Contemporary Arts
Go Creative Clusters
Go Mass Market
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Go Digital
Digital Story-telling of Africa

Tips:
-low cost/barrier for small and segmented
business like art craft and fashion

-Douban is a good platform for alternative music
(Africa music) e.g. UK music industrial and
cultural institutions like BC

-E-business

-E-marketing


Potential By Sector: 3. Digital African Content
Opportunities

Seizing the opportunities & Catching the Fast Train
Getting a good understanding of the business culture and establishing long-term relationships based
on mutual trust with your clients and your partners is essential for business success in China.

China is a highly competitive market in terms of emerging competent local creative suppliers and
increasing established international players.

African suppliers of creative products and services need to carefully position themselves to ensure
they provide high value in terms of the services they offer.
Thank You
Dr. Marina Guo
John Howkins Research Center for Creative Economy Shanghai
Shanghai Theatre Academy

Email: marinaguo@hotmail.com