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Creative industries carve out niche
May 26, 2010, Wednesday
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CHINA'S creative industry has a lot of inherent soft power, but hard economic power is needed to make it shine.
Creative industry retail stores selling everything from knickknacks to furniture are opening up in Hangzhou, trying to attract creative types from around China and the world.
But it's tough to make the economics work. Customer awareness, developing a higher-end market and branding are important. Most shops are small and located away from downtown. They compete with fairs and night markets where creative products are available at cheap prices.
A daring enterprise, 1-Space, recently opened a large store downtown where rents are sky high and most of the businesses are high-end fashion boutiques, department stores, large restaurants and hotels.
The 600-square-meter, two-story space has taken the place of Papa John's, right next to a KFC, at the intersection of Tiyuchang Road and Zhongshan Road N., near Wulin Square.
Rent is around 1.5 million yuan (US$219,600) a year.
Everyone is wondering whether it can survive.
"We're not aiming for much profit, but we want to promote the store as a brand," says the operations director, who identifies herself only as Wang. "There has to be a way for a brand to acquire recognition and popularity."
To intrigue customers and set itself apart from its neighbors, 1-Space does not put its name on the front or declare what's within. When contractors were working, the surrounding wall was blank, giving no hint of what was in store. "Opening soon" in huge characters was all it said.
Interestingly, keeping mum about the business lured many curious young people - the target customers.
From small pins to a whole set of tables and chairs, the store sells many items for daily use, but all are unusual or aesthetically appealing. There's a cup that appears to be made of twisted wires but is comfortable to hold, a fruit platter made of simple steel skewers and a teapot with an ancient shape and modern painting on the exterior.
The store collects and sells the works of various artists and craftsmen and creates changing exhibits.
Lin Zi, from the China Academy of Fine Art, sells handmade jewelry and chose 1-Space as her new base.
"The shop's design works with my own designs," says Lin who has sold her works in other stores.
Wang, 1-Space's director, says customers can find items that are low-carbon, fancy, practical and Oriental.
"We respect nature, our products are people-friendly and all high in quality," she says. "We don't simply collect and sell, our aim is to open a store featuring unique concepts and wisdom - that's the inspiration."
The store has been open less than a month, so it's too soon to say if the fresh concept can overcome financial limitations.
Stores selling creative products in the city face difficulties because they must compete with night markets where rent is just a few hundred yuan a month.
"To overcome financial issues, a high-end market needs to be cultivated," says the director of CCAV Cartoons who identifies himself only as Zhang.
Two years ago the company opened a story selling creative cartoon products on Wulin Road and has managed to break even. This attests to the products' market value, says Zhang.
Another creative industries outlet, the 300-square-meter Charm Cafe on Zhongshan Road, is having a hard time and has not recovered its cost. Not far from 1-Space, the business is doing well but rent is nearly 1 million yuan a year.
Compared with 1-Space, Charm Cafe places more emphasis on decorative items and sets aside two-thirds of the space as a cafe where artists and consumers can communicate.
Says owner Benny Yu: "This process is essential and someone has to do it.
"Creative industry has soft power, but that power will only be realized when economic leverage is applied," he says.
Yu has decided to manufacture the products that are the most popular with customers and promote them to a bigger market.
"Even if this is only retail, the added value of creative products can generate benefits to the city," he says.
Creative industry retail stores selling everything from knickknacks to furniture are opening up in Hangzhou, trying to attract creative types from around China and the world.
But it's tough to make the economics work. Customer awareness, developing a higher-end market and branding are important. Most shops are small and located away from downtown. They compete with fairs and night markets where creative products are available at cheap prices.
A daring enterprise, 1-Space, recently opened a large store downtown where rents are sky high and most of the businesses are high-end fashion boutiques, department stores, large restaurants and hotels.
The 600-square-meter, two-story space has taken the place of Papa John's, right next to a KFC, at the intersection of Tiyuchang Road and Zhongshan Road N., near Wulin Square.
Rent is around 1.5 million yuan (US$219,600) a year.
Everyone is wondering whether it can survive.
"We're not aiming for much profit, but we want to promote the store as a brand," says the operations director, who identifies herself only as Wang. "There has to be a way for a brand to acquire recognition and popularity."
To intrigue customers and set itself apart from its neighbors, 1-Space does not put its name on the front or declare what's within. When contractors were working, the surrounding wall was blank, giving no hint of what was in store. "Opening soon" in huge characters was all it said.
Interestingly, keeping mum about the business lured many curious young people - the target customers.
From small pins to a whole set of tables and chairs, the store sells many items for daily use, but all are unusual or aesthetically appealing. There's a cup that appears to be made of twisted wires but is comfortable to hold, a fruit platter made of simple steel skewers and a teapot with an ancient shape and modern painting on the exterior.
The store collects and sells the works of various artists and craftsmen and creates changing exhibits.
Lin Zi, from the China Academy of Fine Art, sells handmade jewelry and chose 1-Space as her new base.
"The shop's design works with my own designs," says Lin who has sold her works in other stores.
Wang, 1-Space's director, says customers can find items that are low-carbon, fancy, practical and Oriental.
"We respect nature, our products are people-friendly and all high in quality," she says. "We don't simply collect and sell, our aim is to open a store featuring unique concepts and wisdom - that's the inspiration."
The store has been open less than a month, so it's too soon to say if the fresh concept can overcome financial limitations.
Stores selling creative products in the city face difficulties because they must compete with night markets where rent is just a few hundred yuan a month.
"To overcome financial issues, a high-end market needs to be cultivated," says the director of CCAV Cartoons who identifies himself only as Zhang.
Two years ago the company opened a story selling creative cartoon products on Wulin Road and has managed to break even. This attests to the products' market value, says Zhang.
Another creative industries outlet, the 300-square-meter Charm Cafe on Zhongshan Road, is having a hard time and has not recovered its cost. Not far from 1-Space, the business is doing well but rent is nearly 1 million yuan a year.
Compared with 1-Space, Charm Cafe places more emphasis on decorative items and sets aside two-thirds of the space as a cafe where artists and consumers can communicate.
Says owner Benny Yu: "This process is essential and someone has to do it.
"Creative industry has soft power, but that power will only be realized when economic leverage is applied," he says.
Yu has decided to manufacture the products that are the most popular with customers and promote them to a bigger market.
"Even if this is only retail, the added value of creative products can generate benefits to the city," he says.
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